Bank of Baroda shares decline over 3 pc on weak Q1 earnings

State-owned Bank of Baroda on Monday reported a net loss of Rs 864 crore on a standalone basis in the quarter ended June due to increased provisioning for standard accounts. The bank had reported a standalone profit of Rs 710 crore in the year-ago period.

Shares of Bank of Baroda on Tuesday declined over 3 per cent after the company reported a net loss of Rs 864 crore on a standalone basis in the quarter ended June. The company's stock went lower by 3 per cent to Rs 47.05 on the BSE.

At the NSE, it declined 3.19 per cent to Rs 47. State-owned Bank of Baroda on Monday reported a net loss of Rs 864 crore on a standalone basis in the quarter ended June due to increased provisioning for standard accounts.

The bank had reported a standalone profit of Rs 710 crore in the year-ago period. On a consolidated basis, the lender reported a net loss of Rs 679 crore in the first quarter of the current fiscal.

"We reported a loss for the (June) quarter of more than Rs 800 crore as against a profit of Rs 700 crore. Most of that is on account of heightened provision of standard assets, which has moved up by nearly Rs 1,800 crore," the bank's managing director and CEO Sanjiv Chadha told reporters. Of the Rs 1,800 crore, half is due to the provisioning done as per the RBI dispensation for assets that have not slipped on account of the moratorium and the other half of nearly Rs 900 crore is on account of a government guaranteed loan the bank has, he said.

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