BoB posts net loss of Rs 3342 crore in Q3FY16, but stock sizzles

Bank of Baroda (BoB) declared its Q3FY16 results on February 13.The bank’s total income declined by 4.66 per cent to Rs 11727 crore in Q3FY16 as compared to previous quarter.Its net interest margin (NIM)  is 1.72 per cent for Q3FY16 against 2.08 per cent in Q2FY16.BoB’s total expenditure increased by 0.6 per cent to Rs 10023 crore in Q3FY16 on quarterly basis.

BoB’s operating profit before provisions and contingencies decreased by 27.14 per cent to Rs 1704 crore in Q3FY16 as compared to previous quarter. The bank increased its provisions and contingencies expense by more than three times to Rs 6165 crore in Q3FY16 on a quarterly basis. It reported net loss of Rs 3342 crore in Q3FY16 against net profit of Rs 125 crore in Q2FY16.

Considering segment wise revenue front, BoB earned 33.61 per cent from Treasury operations segment, 45.97 per cent from Wholesale Banking segment, and 20.42 per cent from Retail Banking segment during December 2015 quarter.

BoB’s asset qualtiy worsened in December 2015 quarter. The bank’s gross non performing assets (NPAs) declined by 9.68 per cent amounting to Rs 38934 crore and net NPA by Rs 5.67 per cent in 9MFY16. Meanwhile, its gross NPA for International operations was at 4.89 per cent as on Q3FY16.The gross NPA of remaining exposure was at 1.68 per cent, excluding the exposure to India based corporates. 

The share price of BoB increased by 16.18 per cent on bourses in early trades; and is trading at Rs 132.05 on an intraday basis.

BoB is a public sector bank and provides various financial services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services. The bank offers personal banking services, loans and services, such as BarodaHealth and internet banking; business banking services, such as BoB money express and collection services.