Share price of Bank of Baroda on Tuesday afternoon dropped over 3 per cent after the private lender posted a net loss of Rs 864 crore on a standalone basis in June quarter.
On the S&P BSE bank’s stock plunged 3.30 per cent to Rs 46.95 and on the NSE it slipped 3.40 per cent to Rs 46.90.
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.