InvestorQ : Why did Bank of Baroda report such a huge loss in the fourth quarter ended Mar-21?
Katherine Gonsalves made post

Why did Bank of Baroda report such a huge loss in the fourth quarter ended Mar-21?

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rhea Babu answered.
2 months ago
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You are right that BOB reported a loss in Q4, but that was more due to an exceptional accounting adjustment. Bank of Baroda reported net loss of Rs.1,047 crore in the Mar-21 quarter due to tax provisions as BOB shifted to a new tax structure. Tax provisions in the Mar-21 quarter were Rs.3,726 crore against tax credit of Rs.2,289 crore in Mar-20 quarter.

FY21 net profit was still higher by 52% at Rs.828 crore. In the fourth quarter, NII was up 4.54% at Rs.7,107 crore and NIMs improved from 2.63% to 2.72%. Gross NPAs were lower at 8.87% in the Mar-21 quarter but still too high for comfort in absolute ratio terms.

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