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Bank of Baroda buys 99,000 shares of India Debt Resolution Co at Rs 10/share

Bank of Baroda buys 99,000 shares of India Debt Resolution Co at Rs 10/share

With this, the lender's stake in the company will reduce to 9.9 per cent from 12.30 per cent by March 31.

Bank of Baroda Bank of Baroda

State-owned Bank of Baroda on Friday announced that it has bought 99,000 shares of India Debt Resolution Co Ltd at Rs 10 per share. With this, the lender's stake in the company will reduce to 9.9 per cent from 12.30 per cent by March 31.

In September, public sector banks created India Debt Resolution Co Limited (IDRCL) as a step-down asset management company with an aim to resolve and restructure bad loans bought by National Asset Reconstruction Corporation. Under this agreement, the public sector banks will hold a 49 per cent stake in the entity.

IDRCL will manage the stressed assets and engage market professionals and turnaround experts.

Finance Minister Nirmala Sitharaman in her Budget 2021-22 speech had announced that the government intends to set up a bad bank as part of the resolution of bad loans worth about Rs 2 lakh crore in the banking system.

Meanwhile, Bank of Baroda had reported doubling of its net profit to Rs 2,197 crore on a standalone basis in the quarter ended in December 2021.

The lender had posted a net profit of Rs 1,061 crore in the same quarter a year ago.

The bank witnessed improvement in its bad loan ratio, with the gross non-performing assets (NPAs) falling to 7.25 per cent of the gross advances as of December 31, 2021 from 8.48 per cent by end of December 2020.

Net NPAs came down to 2.25 per cent from 2.39 per cent.

Provisions for bad loans and contingencies fell to Rs 2,507 crore for quarter ended December 2021 as against Rs 3,449.90 crore in the year-ago quarter.

Published on: Feb 18, 2022, 6:13 PM IST
Posted by: Aparna Banerjea, Feb 18, 2022, 6:11 PM IST