BoB posts Q4 net loss of Rs 1,047 cr due to rise in tax provisions

Excluding the impact of change in tax regime, the bank would have reported profit after tax of Rs 2,267 crore in Q4FY21

Public sector lender Bank of Baroda posted a net loss of Rs 1,047 crore in the fourth quarter ended March 2021 on sharp rise in tax provisions as it shifted to a new tax structure.

It had booked a net profit of Rs 506 crore in the quarter ended March 2020

For the full financial year of FY21, it posted a net profit of Rs 828 crore, up from Rs 546 crore in FY20.

In Q4FY21, its tax provisions were about Rs 3,726 crore as against tax write back of about Rs 2,289 crore in Q4FY20.

BoB, in a statement, said it moved to a new tax structure, thus reporting a loss of Rs 1,047 crore in Q4FY21 because of Deferred Tax Asset (DTA) reversal. Excluding the impact of the change in tax regime, the bank would have reported profit after tax of Rs 2,267 crore in Q4FY21 and Rs 4,143 crore in FY21, it added.

On Friday, its shares had closed almost flat at Rs 83.85 apiece on BSE.

The net interest income (NII) in Q4FY21 grew by 4.54 per cent to Rs 7,107 crore as against Rs 6,798 crore a year ago. The net interest margin (NIM) also improved to 2.72 per cent in Q4FY21 compared with 2.63 per cent in Q4FY20 led by margin expansion in international business.

Non-interest income for Q4FY21 was up by 71.01 per cent at Rs 4,848 crore.  The recovery from the written off (TWO) accounts increased to Rs 2,040 crore in Q4FY21 as against Rs 280 crore in Q4FY20.

The asset quality profile has improved with steady provision cover and dip in non-performing assets. The provisions and contingencies declined sharply to Rs 3,586 crore in Q4FY21 from Rs 6,645 crore in Q4FY20.

Its Provision Coverage Ratio (PCR) increased marginally to 81.80 per cent at end of March 2021 as compared with 81.33 per cent at end of March 2020.

Its Gross Non-Performing Assets fell to 8.87 per cent in March 2021 from 9.40 per cent in March 2020. The Net NPA ratio improved to 3.09 per cent as against 3.13 per cent as on March 31, 2020.

Its Capital adequacy Ratio (CAR) was at 14.99 per cent as against 13.3 in March 2020.