Bank of Baroda posts loss in Q4
Shares of the state-owned Bank of Baroda fell over 5% on Monday after the lender posted a loss in the March quarter against expectations of profit due to higher tax expenses and a rise in bad loan provisions.
The Bank moved to a new tax structure thus reporting a loss of Rs 1,047 crore because of DTA (deferred tax asset) reversal. Excluding the impact of the change in the tax regime, the bank would have reported a profit after tax of Rs 2,267 crore in Q4FY21 and Rs 4,143 crore in FY21.
It reported a standalone net loss of Rs 1,046.50 crore for the March quarter versus a net profit of Rs 506.59 crore in the year-ago quarter. For the fiscal year 2020-21, the bank reported a net profit of Rs 828.95 crore, up 52% from Rs 546.18 crore.
The tax cost for the March quarter was at Rs 3,726.07 crore against a tax writeback of Rs 2,229.85 crore in the corresponding quarter of last fiscal.
Net interest income was up 4.5# YoY to Rs 7,106.62 crore in Q4FY21. The bank’s asset quality condition improved, with gross non-performing asset ratio falling to 8.87 in Q4 versus 9.63% in the previous quarter (QoQ).
The asset quality print was positive while slippages are expected to trend down in FY22 as well.
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