BoB slips into loss in Q4 on account of one-time tax charge
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Bank of Baroda (BoB) has slipped into the red, reporting a standalone net loss of Rs 1,046.50 crore in the fourth quarter ended March 31, 2021 against a net profit of Rs 507 crore in the year-ago quarter.
The loss is mainly on account of a one-time tax charge of Rs 3,837 crore on account of the public sector bank exercising the option of moving to a lower tax rate. The management does not foresee any further implications of this option being exercised by it.
Operating profit before provisions and contingencies were, however, up 27 per cent year-on-year (yoy) at Rs 6,266 crore (Rs 4,922 crore in the year-ago quarter).
Net interest income (difference between interest earned and interest expended) was up 4.50 per cent yoy at Rs 7,107 crore (Rs 6,798 crore).
Other income, including income from non-fund based activities such as brokerage, commission, fees, income from foreign exchange fluctuation, profit/ loss on sale of investments, recovery from written-off accounts and income from sale of priority sector lending certificates, etc., jumped 71 per cent to Rs 4,848 crore (Rs 2,835 crore).
Gross non-performing assets (GNPAs) during the reporting quarter increased by 3,489 crore.
GNPAs increased to 8.87 per cent of gross advances as at March-end 2021, against 8.48 per cent as at December-end 2020.
Net NPAs rose to 3.09 per cent of net advances as at March-end 2021, against 2.39 per cent as at December-end 2020.
Provisions (other than tax) and contingencies were down 46 per cent yoy to Rs 3,586 crore (Rs 6,645 crore).
Deposits increased by 2.22 per cent yoy to stand at Rs 9,66,997 crore as at March-end 2021. Advances were up 2.34 per cent to Rs 7,06,301 crore.
Meanwhile, BoB’s board on Saturday approved raising of additional capital up to Rs 5,000 crore.
This comprises Rs 2,000 crore of Common Equity Capital by various modes, including QIP, in suitable stages and Rs 3,000 crore by way of Additional Tier I capital/ Tier II capital instruments with an interchangeability option, issued in India/ overseas in suitable tranches up to March-end 2022.
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