BoB tumbles owing to dwindling results

Bank of Baroda, the second largest bank after SBI, on Aug 11 is on a free fall mode. Shares of the bank closed at Rs 145.85, down by 9 per cent. Shares' 52-week High/Low stand at Rs 216.25/109.45. In the last 5 days the shares have fallen by 8 per cent. Shares  have dropped majorly owing to  timid results.

On Aug 11, bank has declared Q1FY17 results. Net profits in Q1FY17 have fallen by 59.74 per cent from a year ago due to higher provisions and lower net interest income. Net profit for Q1 stands at Rs 423.62 crore as compared to Rs 1,052.15 crore in Q1FY16. Net interest income (NII) has fallen by 2.56 per cent to Rs 3371.09 crore in the June quarter from Rs 3459.62 crore last year. Other income has increased by 49.33 per cent to Rs 1444.39 crore from Rs 967.23 crore in the same period last year. Net interest margin has expanded sequentially to 2.8 per cent from 2.7 per cent. Gross NPAs of Bank of Baroda have risen by 6.1 per cent to Rs 42991.68 crore at the end of the June quarter from Rs 40,521.04 crore in the March quarter. On a year-on-year basis, gross NPAs have jumped 148.88 per cent from Rs 17,273.95 crore.

The bank was founded by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on July 20,1908 in the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalised on July 19, 1969, by the Government of India and has been designated as a profit-making public sector undertaking (PSU).