 "Bank of Baroda Q2 net down 89% to Rs 124 crore")
With heavy provisions for bad loans and fraud, Bank of Baroda's net profit for the second quarter ended September 2015 fell by 88.7% to Rs 124.48 crore.
The Mumbai-based public sector lender, which had posted a net profit of Rs 1,104.22 crore in July-September 2014.
The bank's share was trading at Rs 163 after touching an intra-day low of Rs 143 on the Bombay Stock Exchange.
The bank's share was trading at Rs 163 after touching an intra-day low of Rs 143 on the Bombay Stock Exchange.
This is the first set of results announced by the bank under new managing director and chief executive PS Jayakumar. He took charge on October 12, 2015.
BoB's net interest income for the reporting quarter declined by 2.74% to Rs 3, 244 crore from Rs 3, 401 crore in Q2 of 2014-15.
The other income including fees and commissions rose by 15.4% to Rs 1,144 crore from Rs 991 crore in same quarter last year.
The gross non-performing assets of the bank stood at 5.56% (Rs 23, 710 crore) at the end of September 2015 as against 3.32% (Rs 13, 057 crore) in September 2014. Its restructured loans stood at Rs 22, 930 crore at the end of September 2015.
The bank's provision and contingencies rose to Rs 1, 891 crore in the second quarter from Rs 888 crore in the same quarter last year. This includes provision of Rs 93 crore for one account declared as fraud. The total exposure to this account is Rs 374.48 crore.
The bank will make balance provisions over the next three quarters. It also detected fraud at Ashok Vihar branch in New Delhi. The estimated loss is Rs 11 crore.
The bank will make balance provisions over the next three quarters. It also detected fraud at Ashok Vihar branch in New Delhi. The estimated loss is Rs 11 crore.