Bad loans: Bank of Bar­oda posts high­est-ever loss of ` 3,342 crore

Hindustan Times ST (Mumbai) - HT Navi Mumbai Live - - FRONT PAGE - HT Correspondent ht­metro@hin­dus­tan­

Bank of Bar­oda on Satur­day joined the band­wagon of banks hit by mount­ing pro­vi­sions for bad loans as the sta­te­owned len­der posted its high­est ever loss in any quar­ter at Rs3,342 crore due to a nearly five-time jump in pro­vi­sion­ing.

This is the high­est loss suf­fered by any len­der. The bank had re­ported a net profit of Rs332 crore in the year-ago pe­riod. In the Oc­to­ber-De­cem­ber quar­ter, pro­vi­sions against bad loans surged to Rs 6,474 crore as against Rs 1,150 last year. The bank made pro­vi­sions for all weak as­sets iden­ti­fied un­der the Re­serve Bank of In­dia’s as­set qual­ity re­view.

“High pro­vi­sions for stressed loans and re­ver­sal of part of in­ter­est in­come for ac­counts now treated as non-per­form­ing loans hit the bot­tom line,” the bank said in a state­ment. Hav­ing made the pro­vi­sions in one go, Bank of Bar­oda now ex­pects to re­port a profit in the fourth quar­ter end­ing March.

The bank’s loss came two days af­ter State Bank of In­dia (SBI), the coun­try’s largest len­der, re­ported a 62% drop in prof­its, again due to bad loans. In­abil­ity of com­pa­nies to ser­vice their loans due to an over­rid­ing slow­down in the pre­vi­ous cou­ple of years has af­fected most In­dian banks with a ma­jor­ity of their loans turn­ing bad.

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