Bank of Baroda shares fall over 1% on business setback

NEW DELHI: Shares of state-run lender Bank of Baroda fell over 1 per cent in morning trade on Friday. Shrinking loan portfolio and deposit base squeezed total business of the state-owned bank by nearly Rs 90,000 crore in 2015-16 despite a robust GDP growth of 7.6 per cent during the fiscal.

The total business, mix of deposits and advances, came down by staggering Rs 87,817 crore in the period under review as against the previous fiscal, as per BoB's latest annual report.

The public sector lender reported a net profit of Rs 423.62 crore in June quarter of FY17, which was better than Rs 395 crore profit estimated by analysts in an ET Now poll. However, the most disappointing figures for the quarter were gross non-performing assets ( GNPAs),which surged to 11.15 per cent in the first quarter from 9.9 per cent in March quarter.

Net NPAs at 5.73 per cent were higher than 5.06 per cent reported for the March quarter.

At 10:53 am, shares of the bank were trading at Rs 160.30 apiece, down 0.93 per cent from its previous close on Bombay Stock Exchange ( BSE).