NEW DELHI: Bank of Baroda on Monday reported a net loss of Rs 864 crore on a standalone basis for the first quarter (Q1FY21) due to increased provisioning for standard accounts. The lender had reported a standalone profit of Rs 710 crore for the corresponding quarter of last year.
On a consolidated basis, the lender had reported a net loss of Rs 679 crore in the first quarter of the current fiscal. “We reported a loss for the (June) quarter of more than Rs 800 crore as against a profit of Rs 700 crore. Most of that is on account of heightened provision of standard assets, which has moved up by nearly Rs 1,800 crore,’ the bank’s managing director and CEO Sanjiv Chadha told reporters.
Of the Rs 1,800 crore, half is due to the provisioning done as per the RBI dispensation for assets that have not slipped on account of the moratorium and the other half of nearly Rs 900 crore is on account of a government guaranteed loan the bank has,” he said.
He said the government guaranteed loan carries a zero percent risk weight and is standard and the provisioning has been done as per the June 7 circular of the RBI on stressed asset resolution. “We are carrying a very substantial provision on that account which would add up to nearly Rs 2,500 crore,” he told reporters.