Bank of Baroda reported standalone net profit of ₹1,061 crore for the third quarter ended December 31, 2020 as compared to a net loss of ₹1,407 crore due to a sharp reduction in provisioning for bad loans. Total income was lower at ₹20,664 crore as compared to ₹21,809 crore in the year earlier. Standalone provisioning and contingency fell to ₹3,957 crore from ₹7,155 crore in the year-earlier period.
The bank reported consolidated net profit of ₹1,195 crore as compared to net loss of ₹1,219 crore in the year-earlier period. Total income was lower at ₹22,071 crore as compared to ₹23,135 crore in the year-earlier period.
Consolidated provision for bad loans and contingency fell to ₹4,619 crore from ₹7,234 crore in the year-earlier period.
Gross NPA ratio stood at 8.48% as on December 31, 2020, against 10.43% as on December 31, 2019. In value terms, its gross NPA fell to ₹63,182 crore from ₹73,140 crore.
Net NPA ratio reduced to 2.39% as against 4.05% as on December 31, 2019. In value terms, net NPA fell to ₹16,667 crore from ₹26,540 crore in the year-earlier period.
Speaking to reporters, the bank’s MD & CEO Sanjiv Chadha said he was fairly confident of the quality of corporate loans which had not been restructured post COVID-19. “But we expect stress to come from MSME and retail loans,” he added.
Executive director S.L. Jain said loans of ₹9,501 crore came up for restructuring during the quarter and the bank made COVID-19 related provisions of ₹1,709.45 crore.