19.1 C
Saturday, November 27, 2021

Bank of Baroda plans to raise ₹ 2000-4000 crore from QIP by March

The results of Bank of Baroda have been impressive. The bank reported better results than expected due to strong domestic loan growth in the third quarter. On a yearly basis, the bank has turned profitable from losses. Bank of Baroda reported a profit of Rs 1,061.1 crore in the third quarter of FY 2021 as against a loss of Rs 1,407 crore in the third quarter of FY 2020. According to CNBC-TV18 poll it was estimated to be Rs 825 crore.

The bank’s interest income grew 8.6 per cent to Rs 7,749 crore in the third quarter from Rs 7,132 crore in the year-ago quarter. According to CNBC-TV18 poll it was estimated to be Rs 7,427 crore.

Gross NPA of the bank has come down from 9.14 per cent to 8.48 per cent in the third quarter on a quarterly basis. At the same time, Net NPA has come down from 2.51 percent to 2.39 percent. In rupees, the bank’s Gross NPA has come down from Rs 65,698 crore in the third quarter to Rs 63,182 crore and Net NPA has come down from Rs 16,795 crore to Rs 16,668 crore.

Provisioning of the bank on a quarterly basis has been at Rs 3,957 crore against Rs 3,002 crore as against Rs 7,155 crore in the third quarter of last year. The bank’s domestic loan growth stood at 8.31 per cent on an annual basis as against 4.6 per cent on a quarterly basis.

Talking about the Bank of Baroda’s results MD & CEO, Sanjiv Chadha Said that NPA is improving over last year. Provisioning has also been done for NPA accounts that are not identified. Loans and interest of NPA accounts have also been provisioned. Q3 NPA accounts will not have any further impact on the balance sheet.

He said that by our estimate slippages should be reduced in the fourth quarter. The moratorium, SC order led to an increase in NPA in Q3. Slippages have come down over last year. Banks will be restructuring some international loan accounts.

Talking on the fourth-quarter guidance, he said that the bank had a good growth despite Corona in Q3. Margins are expected to be even better. NPAs will be significantly lower in Q4 than in Q3. The bank will be restructuring many loan accounts. Although the sluggish economy will put pressure on retail and MSME, corporate loans are expected to grow. The bank’s Capital Adequacy stood at 13.4%. You will fulfill the need of the fund only with Internal Approval. The bank plans to raise Rs 2000-4000 crore from QIP by March.

Relief to HDFC Bank borrowers, now loan installment will be deposited at nearest CSC; Learn every detail

Shehnaz is a Corporate Communications Expert by profession and writer by Passion. She has experience of many years in the same. Her educational background in Mass communication has given her a broad base from which to approach many topics. She enjoys writing about Public relations, Corporate communications, travel, entrepreneurship, insurance, and finance among others.
Latest news
- Advertisement -
Related news
- Advertisement -


Please enter your comment!
Please enter your name here