India’s state-run Bank of Baroda reported a massive plunge of 88.7% in its net profit at Rs 124.48 crore for the September quarter, mainly hit by sharp increase in bad loans provision, reports said
The bank had reported a net profit of Rs 1,104.22 crore in the year-ago period, the bank said in a regulatory filing. Total income during the quarter increased to Rs 12,300.40 crore from Rs 11,817.32 crore in the year-ago period, it said.
“During the quarter, bank detected a fraud in Ashok Vihar branch, New Delhi, and has reported the same to RBI and various investing authorities. The Bank has estimated a loss of Rs 11 crore on account of unreconciled entries pertaining to outward remittances by way of import advance payments, which is fully provided for,” it added.
“A borrower account has been declared as fraud wherein total exposure is Rs 374.48 crore as at the end of this quarter. Out of the aforesaid amount, a provision of 25% amounting to Rs 93.59 crore has been provided during the quarter… the balance provision shall be made by the Bank over a period not exceeding three quarters,” it said.
The gross bad loan ratio for the quarter rose to 5.56% as against 3.32% in the same quarter a year ago, it added.