Vadodara headquarter Bank of Baroda publicized its net loss of Rs 3,342 crore for the December quarter in comparison with Rs 332 crore profit last year. It is considered as the highest-ever quarterly loss by an Indian bank.
- The reason behind this huge loss is the provisions against bad loans which have jumped to Rs 6,164 crore against Rs 1,262 last year and increase in NPA percentage to 9.68% from 3.85%.
RBI has already instructed all lenders to treat troubled accounts as non-performing even if an actual default is yet to happen and make adequate provisions.
- BOB is followed by IDBI (-2,183.68 cr), Bank of India (-1,505.58) and UCO Bank (-1,497.01).
About Bank of Baroda:
Established in 1908, Bank of Baroda is an Indian state-owned banking and financial services company headquartered in Vadodara.
- The bank was founded by the Maratha, Maharaja of Baroda, H. Sir Sayajirao Gaekwad III in Baroda, Gujarat.
- It was nationalized on 19 July 1969, by the Government of India.
- CEO & MD – P S Jayakumar
BOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company based in Mumbai, Maharashtra. It is a wholly owned subsidiary of Bank of Baroda.
IndiaFirst Life Insurance Company is a joint venture between Bank of Baroda (44%) and Andhra Bank (30%) and UK’s financial and investment company Legal & General (26%).
- Headquarters – Mumbai