Bank of Baroda has reported a 60 per cent plunge in standalone net profit to £42.36 million for the first quarter, hit by higher provisions for bad loans and contingencies. The bank posted net profit of £105.21 million in the same quarter a year ago. Gross non-performing assets (NPAs) were 11.15 per cent of gross advances as of June, up from 4.13 per cent a year ago, and in absolute terms rose to £4.299 billion as against £1.72 billion a year earlier.
Shares of Bank of Baroda fell sharply by 8.95 per cent to Rs 145.95 on the BSE, wiping out £330.6 million from its market valuation. IDBI Bank, another PSU bank, has posted over 78 per cent jump in net profit to £24.1 million for the first quarter ended June 30, 2016-17 from £13.5 million, on higher income even as provisioning for bad loans nearly trebled from the year-ago period. “Total income during the June quarter of 2016-17 rose to £821.9 million, up from £790.3 million earned in the same period a year ago,” IDBI said in a release.
