Bank of Baroda puts Rs 28 billion non-fund exposure under watch list

The bank is expecting slippages to be about Rs 40 billion in the current financial year

Besides having direct loans worth Rs 68 billion under its watch list, Bank of Baroda has also put non-fund exposures worth Rs 28 billion on “watch”, which could turn into stress asset.

The bank has also started making provisions for non-fund-based limits such as guarantees and letters of credit. The non-fund-based exposure is about Rs 28 billion and has provision of 35 per cent of the amount — about Rs 9.8 billion.

P S Jayakumar, managing director and chief executive, BoB, said that not all of non-fund-based exposure is going to devolve and some of the guarantees are going to