The loss reported by the lender is on account of accelerated NPA provisioning for its telecom and IL&FS exposure. It has also provided fully for its exposure to Bhushan Steel and Alok Industries. The bank, however, had posted a profit of Rs 471.25 crore in Q3FY19.

Although the two accounts (Bhushan and Alok) are at an advanced stage of resolution in the National Company Law Tribunal (NCLT), the lender is still awaiting to recover its money. Once the money comes in, it will give an additional opportunity to grow in the upcoming quarters. Moreover, some of the road projects of Essel Infra also contributed to the accelerated NPA provisioning on the part of the bank.

The provisions for NPAs for the fourth quarter ended March 31, 2019, was at Rs 5,550 versus Rs 3,416 crore in the previous quarter. The provision coverage ratio of the bank stood at 78.68 per cent.

“We have looked at our provision number in a variety of portfolios and it was considered appropriate at this point in time that to increase the coverage ratio. What we see is a significant improvement in the coverage ratio”, said P S Jayakumar, MD & CEO of Bank of Baroda.

“As far as our coverage ratio is concerned, when adjusted for the written-off accounts, it is at 68 per cent – among the highest in the industry. So, we are well protected over there,” said Jayakumar.

As far as asset quality is concerned, gross net performing assets (GNPAs) reduced to 9.61 per cent in Q4 as against 11.1 per cent on the quarter-on-quarter basis. Similarly, net NPA ratio declined to 3.33 per cent in Q4FY19 from 4.26 per cent in December 2018.