[Mumbai] Bank of Baroda,After SBI, Also Books Loss:Highest Ever of Rs 3,342 cr
Earlier SBI Booked 67% Declined Profit,,Claiming Due To Bad loans
StateBank of Baroda today reported the highest-ever quarterly loss in the nation’s banking history at Rs 3,342 crore for the October-December period.
The country’s second-largest lender declared that there will be no more surprises in store for the bank, and that a process of reorganisation is underway.
State-run bank asserted it will not seek any capital infusion from the government but would rather work on generating the money internally, including sale of non-core assets.
Its newly inducted Managing Director and Chief Executive P S Jayakumar said through the clean-up and reorganisation exercise, the bank is confident of posting “reasonable level” of profit next fiscal year.
The gross NPA ratio zoomed to 9.68 per cent on fresh slippages of Rs 15,603 crore in the third quarter under review as against Rs 3,042 crore in the year-ago period. This resulted in a nearly five-fold jump in overall provisions and contingencies at Rs 6,164.55 crore.
Executive Director B B Joshi said half of the slippages and 30 per cent of provisions can be attributed to the RBI’s asset quality review (AQR), wherein it has asked the Vadodara-headquartered lender to identify 30 accounts as NPAs.