Bank of Baroda (BoB) reported a first quarter net loss of ₹864 crore compared with a net profit of ₹710 crore a year-ago on account a ₹1,811-crore provisioning for standard accounts, the bank said in a filing.

Net interest income, however, rose 4.9% to ₹6,816 crore. Asset quality improved with gross NPA ratio falling to 9.39% against 10.28%. Net NPA ratio declined to 2.83% ( 3.95%).

Slippage ratio fell to 1.64% (3.56%). Advances grew 8.6% while domestic retail term deposits rose 10.4%.

The bank said amalgamation benefits were visible through realization of synergies with 99% of estimated synergies for year one realized in first year itself. Bank has co-located 771 branches and 113 ATMs as of June 30, 2020 and IT integration is to be completed by March 2021

“This was one year post merger (with Vijaya Bank and Dena Bank) and the merger process will add tremendous value going forward,” said Sanjiv Chadha, MD & CEO.

The growth momentum of the bank remains intact, asset quality has improved but [the] loss was reported due to special provisioning of ₹1,811 crore out of which ₹900 crore was for a government guaranteed loan.”

Without naming this account, he said the loan was worth ₹7,600 crore and it could not be restructured. Out of the total loan there is government guarantee for ₹5,600 crore he said.

He also said the bank planned to raise ₹13,500 crore this year.

He said the term loan moratorium in the second phase has comedown to 21% of the total loan book as against 60% in the first phase.

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