Bank of Baroda slips 7% on NPA resolution concern

The country’s second largest public sector lender, Bank of Baroda slipped in early trade on the back on fresh concerns relating to the resolution of bad loans with the borrowers. Despite posting a decent set of numbers, street seems to be worried about the disposal of non-performing assets.

Bank of Baroda turned profitable for the quarter ending December 31 by posting a net profit of Rs 252.67 crore against a huge loss of Rs 3,342.04 crore in the same quarter last year. Profits were largely supported by decline in the provisioning figure.

Bank witnessed a NII growth of 15.85 per cent which was boosted by trading and fee income in Q3. CASA saw a whopping jump of 43.19 per cent on a yearly basis after the windfall gains from the demonetisation deposits received.

However, loan growth was down by 8.9 per cent on a yearly basis. Stocks reacted negatively since the bank did not specify any time frame by what time markets can expect a resolution of NPA issue.

Currently, the stock is trading at Rs 175.50, down 6.65 per cent on NSE.