Bank of Baroda (BoB) slipped into the red, reporting a standalone net loss of ₹1,046.50 crore in the fourth quarter ended March 31, against a net profit of ₹507 crore in the year-ago quarter.
The loss is mainly on account of a one-time tax charge of ₹3,314 crore after the public sector bank exercised the option of moving to a lower tax rate.
Sanjiv Chadha, MD & CEO, said as the bank had a robust growth in taxable profit, it decided to exercise the option of transiting to the lower tax rate regime. But for this, the bank would have posted ₹2,267-crore net profit in the reporting quarter.
Operating profit before provisions and contingencies was up 27 per cent year-on-year (y-o-y) at ₹6,266 crore (₹4,922 crore). The net interest income was up 4.55 per cent at ₹7,107 crore (₹6,798 crore).
‘Other income’, including from non-fund based activities such as commission, exchange, brokerage, fees, forex income, profit/ loss on sale of investments, and recovery from written off accounts, jumped 71 per cent to ₹4,848 crore (₹2,835 crore).
Fresh slippages rose to ₹11,656 crore (including proforma slippage of ₹8,637 crore, implying a net slippage of ₹3,019 crore). The slippages in the year-ago period were at ₹3,050 crore.
Chadha said corporates will largely come out unscathed from the second Covid-19 wave. But the retail segment will be impacted and the MSME segment will be affected significantly.
GNPAs declined to 8.87 per cent (9.40 per cent) of gross advances.
Net NPAs edged down to 3.09 per cent (3.13 per cent). Provisions for NPAs rose 44 per cent yoy to ₹4,593 crore (₹3,191 crore).
Global deposits increased by 2.22 per cent y-o-y to stand at ₹9,66,997 crore as of March-end. Global advances were up about 2 per cent to ₹7,51,590 crore, driven by growth in retail, agriculture and MSME segments.
Meanwhile, BoB’s board on Saturday approved raising of additional capital up to ₹5,000 crore.