The bank warned of more pains in the March quarter to meet the Reserve Bank directive to clean the books by the end of the fiscal year.
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State-run Corporation Bank reported a loss of Rs 388.37 crore for the third quarter ended December 31, 2015, due to significant jump in bad loans.
In absolute terms, gross NPAs at Bank of Baroda surged 64% over the previous quarter to Rs.38,934 crore compared to Rs.23, 710 crore at the end of the September quarter.
The overall provisions and contingencies stood at Rs 6,164.55 crore as against Rs 1,262.25 crore a year ago.
Bank of Baroda Chief Executive P.S. Jayakumar, the former head of an Indian real estate firm, said the bank expected a “fair bit of stability” in its asset quality in the quarters ahead.
The capital adequacy ratio of the bank was 12.18 per cent, including 9.04 per cent of common equity Tier-I capital.
India’s second-largest public sector bank, Bank of Baroda, recorded a loss of Rs 3,342 crore, which is the highest ever quarterly loss for a lender in the country. It’s operating profit nearly halved at Rs 745 crore as against Rs 1,425 crore in the comparable period. Some of the non-core assets the bank is considering selling include stakes in Care Rating, NSE, NSDL and Arcil, he said.
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The bank’s gross bad loans as a percentage of total advances almost doubled to 9.68 percent in the December quarter from 5.56 percent in the previous three months. The provision coverage ratio of the bank was at 52.7 per cent.
