Bank of Baroda pares losses, ends 5% up even as bad loans surge in Q2

Shares of Bank of Baroda wiped out entire losses and settled the day 4.95 per cent higher after cracking 10 per cent in the early trade on Friday.

The company reported 89 per cent fall in net profit for the quarter ended September 30, owing to high provisions as the private lender's non performing assets (NPAs) worsened.

The stock hit an intraday low of Rs 143.55, down 10 per cent on the Bombay Stock Exchange (BSE).

BoB's NPAs came in at 3.08 per cent compared to 2.07 per cent sequentially, while gross bad loan ratio stood at 5.56 per cent compared to 4.13 per cent in the June quarter, the company said in a BSE filing.

Second quarter provisions rose to Rs 1892 crore compared to Rs 600 crore quarter-on-quarter.

New management is reorganising the lending book and next quarter will be better, said traders.

Government earlier named PS Jayakumar, chief executive of real estate developer VBHC Value Homes Pvt Ltd, as head of the bank.

(With inputs from Reuters)