Public sector lender Bank of Baroda posted pre tax loss of Rs 1,308 crore in the quarter ended June 2020 (Q1FY21) on a rise in provisions for standard assets, including those under moratorium and government guaranteed loans. It had booked a profit before tax (PBT) of Rs 991 crore in Q1FY20.

The lender's net loss for reporting quarter was Rs 864 crore compared to a net profit of Rs 710 crore in the corresponding quarter, a year ago.

Its stock closed flat at Rs 48.55 per share on the BSE.

The bank's net interest income (NII) grew 4.91 per cent on a year on year (YoY) basis from Rs 6,497 crore in Q1FY20 to Rs 6,816 crore in Q1FY21. However, the non-interest income, comprising fees, commissions, etc, fell from Rs 1,916 crore in Q1FY20 to Rs 1,818 crore in Q1FY21.

Its provisions and contingencies rose by 71.32 per cent to Rs 5,628 crore in Q1FY21 from Rs 3,285 crore in Q1FY20. The bank made a provision of Rs 1,900 crore for standard assets. Out of this, half was for a loan which carries government guarantees and the remainder for loans under moratorium, said Sanjiv Chadha, the bank's managing director and chief executive.

The bank's asset quality improved during the reporting quarter. The gross non-performing assets (GNPAs) declined to 9.39 per cent in Q1FY21 from 10.28 per cent in Q1FY20. The GNPAs were at 9.4 per cent at end of March 2020.

The net NPAs declined to 2.83 per cent in June 2020 from 3.95 per cent in June 2019. The net NPAs were at 3.13 per cent in Mach 2020.

The provision coverage ratio (PCR) improved to 83.3 per cent in June 2020 from 77.34 per cent a year ago.

The capital adequacy ratio (CAR) of the bank stood at 12.84 per cent as on June 30, 2020 with Tier I at 9.08 per cent. The bank has an approval in place to raise upto Rs 9,000 crore through equity shares.