BOB posts 2nd net loss in a row

Government promoted Bank of Baroda (BOB) has posted Q4FY16 results, wherein  its net profits have dropped more or less in line with the last quarter’s fall. The management could not live up to the expectations.

Bank’s standalone Interest earned stands at Rs 11014.38 crore this quarter as against Rs 10614.04 crore in Q3FY16, an increase of 3.8 per cent Q-O-Q (Quarter on Quarter). The Interest expended stands at Rs 7683.97 crore as against Rs 7908.7 crore for Q3FY16, a decrease of -2.8 per cent. Thereby the Net Interest Margin (NIM) of the company stands at Rs 3330.41 crores this quarter compared to Rs 2705.34 crores in Q3FY16, an increase of 23.1 per cent QoQ.

Bank has posted a net loss consecutively for two quarters. Bank has posted a net loss of Rs 3230.14 crore in Q4FY16 as against a loss of Rs 3342.04 crore last quarter. Bank’s per cent Gross NPA stands at 9.99 as compared to 9.68, an increase of 3.2 per cent. However, per cent Net NPA has come in at 5.06 as against 5.67, a decrease of 10.8 per cent.

On yearly basis the Bank’s standalone Interest Earned stands at Rs 44061.27 crore for the year ended March 2016 compared to Rs 42693.55 crore in March 2015, an increase of 2.6 per cent. However, Bank posted a net loss of Rs 5395.55 crore in FY16 against a profit of Rs 3398.43 crore in FY15. Bank’s per cent Gross NPA stands at 9.99 as against 3.72. Per cent Net NPA has come in at 5.06 from 1.89 for the year ending March 2015.

Government holds 59.24 per cent stake in Bank of Baroda. BOB is a public sector bank that deals in 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.

On May 13 the stock closed at Rs 155.10, at a decrease of 1.62 per cent in the aftermath of the results.