Higher NPA provisioning: Bank of Baroda Q2 net drops 36%

Provisions for NPAs were higher at Rs 1,847 crore as compared to Rs 1,630 crore in the corresponding quarter of the previous year.

By: ENS Economic Bureau | Mumbai | Published:November 15, 2017 2:00 am
Bank of Baroda quaterly earning, Bank of Baroda revenue, Bank of Baroda profit, Bank of Baroda loss, Bank of Baroda q2 profit 2017 In absolute value, gross NPAs were Rs 46,306.83 crore during the quarter against Rs 42,949.25 crore.

Public sector Bank of Baroda has posted a 36 per cent decline in net profit to Rs 355 crore for the second quarter ended September 2017 from Rs 552 crore in the corresponding quarter of the previous year.

Gross non-performing assets (NPAs) of the bank declined slightly to 11.16 per cent of the gross loans by the end of second quarter, from 11.35 per cent in the same period of last year and also from 11.40 per cent in the April-June quarter of current financial year. Net NPAs too fell to 5.05 per cent of the net advances by September 30, 2017 from 5.46 per cent as at end-September 2016.

In absolute value, gross NPAs were Rs 46,306.83 crore during the quarter against Rs 42,949.25 crore. And net NPAs or bad loans stood at Rs 19,572.62 crore, as compared to Rs 19,341.95 crore.

The bank said it made provision of 20 per cent on secured sub-standard advances which is higher than the regulatory requirement of 15 per cent. Also, the bank said it made an additional provision of Rs 22.06 crore in respect of standard advances to stressed sectors of the economy.

“Due to change in appropriation of recovery in NPA accounts, additional income of Rs 93 crore has been recognised during the quarter ended September,” it added. “In compliance with the RBI, during the quarter ended September 2017, the bank had made a provision of Rs 162.94 crore under Insolvency and Bankruptcy Code (IBC). Remaining Rs 325.89 crore will be provided in next two quarters as permitted under RBI directions,” the bank said.

Provisions for NPAs were higher at Rs 1,847 crore as compared to Rs 1,630 crore in the corresponding quarter of the previous year. But they were significantly lower than the Rs 2,157 crore that was provisioned in the first quarter. The bank said that its provisioning loan coverage was at 67.18 per cent.

Total income of the bank rose by a modest 3.68 per cent to Rs 12,490 crore during the July-September quarter of 2017-18, compared to Rs 12,047 crore in the second quarter of 2016-17, the bank said in a regulatory filing statement.

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