Hit by bad loan surge, Bank of Baroda Q1 net drops 23% at Rs 1,052 cr

New Delhi: State-run Bank of Baroda (BoB) reported 22.74 percent decline in net profit at Rs 1,052.15 crore during the first quarter ended June 30, on higher provision for bad loans and wage revision. The bank had reported a net profit of Rs 1,361.88 crore in the corresponding first quarter of the previous fiscal. Total income of the bank, however, showed a rise of 4.8 percent at Rs 12,243.72 crore during the quarter as against Rs 11,682.50 crore a year ago, it said in a BSE filing. Bank’s asset quality slipped further in the first quarter of 2015-16 as gross non-performing assets (NPAs) or bad loans jumped to 4.13 percent of gross advances. Similarly, net NPAs rose to 2.07 percent of net advances from 1.58 percent a year ago. Likewise, provisions towards bad loans and contingencies were raised to Rs 599.74 crore during Q1FY16 as against Rs 526.71 crore in the same period a year earlier. “Consequent upon wage revision effective from November 1, 2012, pending final payment, as estimated provision of Rs 1,313.46 crore is held on June 30, 2015 on account of wage revision and employee benefit for wage revision, which includes Rs 262.73 crore provision made in current quarter,” it said in the filing. However, Bank of Baroda scrip shot up 9.31 per cent to Rs 167.30 apiece on BSE during noon trades. PTI