Bank of Baroda jumps 9% as Q4 profit beats Street estimates, slippages dip

BoB reported a strong performance on impairment ratios with gross and net NPLs declining 100bps QoQ to 9.4% and 3.1% respectively

Shares of state-owned Bank of Baroda jumped 9 per cent to Rs 55 on the BSE on Wednesday on Rs 507 crore net profit in the March quarter of FY20 (Q4FY20), helped by lower provisions. The bank had reported a net loss of Rs 1,407 crore in the Decmeber quarter of FY20. The numbers are not comparable year-on-year due to its merger with Dena Bank and Vijaya Bank effective April 1, 2020. 

The figure beat Street estimates who had expected the bank's profit to come anywhere between Rs 356 crore and (-) Rs 1,659 crore. 

“Asset quality could spring in some volatility