Bank of Baroda net at Rs 1167 cr, shares fall 6% on bad loans

Bank of Baroda shares fell as much as 6 per cent on Thursday after the public sector lender reported sharp rise in bad loans in the first quarter ending June. The sharp selloff in the stock came despite the lender reporting higher than estimated profits in Q1.

Net profit rose to Rs 1,167 crore against NDTV poll of Rs 1,045 crore. However, net profit fell over 60 per cent as compared to Rs 2,941 crore in the corresponding quarter last year.

Net interest income, the difference between interest earned on advances and paid on deposits, rose to Rs 2,889 against Rs 2,789 crore in the corresponding quarter last year. Profits were boosted by treasury income, which rose to Rs 663 crore against Rs 274 crore in the year-ago period.

Bank of Baroda's gross non-performing assets (NPA) rose to 2.99 per cent of advances in the June quarter against 2.4 per cent in the March quarter, while net NPAs stood at 1.69 per cent against 1.28 per cent in the previous quarter.

State-run banks have borne the brunt of a sharp slowdown in the Indian economy, which grew at the slowest pace in a decade in the 2012-13 fiscal. Corporate earnings are under stress, leading to several defaults, analysts said.

In terms of absolute numbers, net NPAs rose to Rs 5,441crore against Rs 4,192 crore in the previous quarter.

Bank of Baroda set aside Rs 1,019 crore as provisions for bad loans as compared to Rs 893 crore in the year-ago period.

Bank of Baroda shares traded 3.3 per cent lower at Rs 542.25 as of 11.45 a.m. after earlier falling to a low of Rs 528.85. (Track stock)