BoB remains down in the red

There is some unconfirmed news from Bank of Baroda. A senior official has stated that the bank is likely to recover some Rs.2700 crore worth of NPAs before end of this fiscal. The news is that it has already recovered around R1,750 crore as on February 29. It expects to recover Rs.850 crore in March.

The Bank had a dismal Q3FY16 wherein its asset quality and profitability, both declined. It posted a net loss for the quarter at Rs.3342 crore v/s profit of Rs.124 crore in Q2 – the biggest quarterly loss posted by any bank. The whopping 225% jump in provisions at Rs.6164 crore is what pushed the Bank into the red. The loss would have been much higher but for the tax write back of Rs.1118 crore. In terms of asset quality, its NPA rose sharply by 64.2% to 9.68% (QoQ) and net NPA rose 70%.

The stock price is down currently 1.5% at Rs.143 with an intra day low at Rs.141.