Bank of Baroda Q1 net dives 60%; stock crashes on rising bad loans

Public sector Bank of Baroda reported a massive 60% plunge in its standalone net profit at Rs 423.62 crore for the first quarter ended June 2016, hit by higher provisions for bad loans and contingencies.

The bank had a net profit of Rs 1,052.15 crore on standalone basis in the corresponding quarter a year ago.

"Total income decreased to Rs 11,877.91 crore for the quarter ended June 2016 from Rs 12,243.720 crore in the quarter ended June 30, 2015," it said in a regulatory filing.

The bank said it made a profit of Rs 424 crore while moving from a loss position in the previous two quarters.

Both gross and net non performing assets (NPAs) rose over two times as a percentage of advances during the first quarter of the current fiscal.

Gross NPAs were 11.15% of gross advances as of June 2016, up from 4.13% a year ago, and in absolute terms rose to Rs 42,991.68 crore as against Rs 17,273.95 crore a year earlier.

Net NPAs stood at 5.73% (Rs 20,783.77 crore), up from 2.07% (Rs 8,470.02 crore).

Thus, provisions for bad loans and contingencies were raised to Rs 2,004.07 crore for the reported quarter against Rs 599.74 crore a year.

Bank of Baroda shares were trading at Rs 147.50 apiece, down 7.99% on the BSE.