State-owned lender Bank of Baroda, which acquired Dena and Vijaya Bank in a three-way merger in April this year, reported a net loss of Rs 864 crore for the first quarter ended June 30, 2020, on account of higher provisions. The public sector bank had registered a net profit of Rs 710 crore in the corresponding quarter last year and Rs 507 crore in March quarter.
"On account of provisioning on standard accounts of Rs 1,811 crore, bank reported a (standalone) net loss of Rs 864 crore in Q1 FY21 and consolidated net loss stood at Rs 679 crore," Bank of Baroda said in a filing to the Bombay Stock Exchange.
Interest income of the lender fell by 2.38 per cent to Rs 18,494 crore during the April-June quarter of 2020-21, as against Rs 18,944 crore in the year-ago quarter. Operating profit stood at Rs 4,320 crore during June quarter this year.
Net Interest Income (NII), the difference between interest earned and interest expended, rose 4.91 per cent to Rs 6,816 crore during Q1 FY21, in comparison to Rs 6,497 crore in the quarter ended June 30, 2019.
Bank of Baroda's total provisions and contingencies spiked 71.32 per cent to Rs 5,628 crore in Q1 FY21, as against Rs 3,285 crore in Q1 FY20. Slippage ratio fell to 1.64 per cent in Q1 FY21 compared with 3.56 per cent in Q1 FY20. Domestic slippage ratio stood at 0.45 per cent in Q1 FY21, it said.
The lender's global advances increased by 8.6 per cent led by international, domestic organic retail, and corporate loans which grew by 13.93 per cent, 13.5 per cent, and 9.16 per cent, respectively.
On the asset quality front, Bank of Baroda's gross NPA ratio fell to 9.39 per cent as on June 30, 2020, against 10.28 per cent as on June 30, 2019. Net NPA ratio too declined to 2.83 per cent as against 3.95 per cent in the year-ago period.
Ahead of Q1 earnings, shares of Bank of Baroda ended Monday's trade at Rs 48.55, up 0.21 per cent, against previous closing price of Rs 48.45 on the BSE.