Bank of Baroda share slips 5% despite Rs 829-crore profit in last fiscal

Bank of Baroda share fell over 5% today even as the lender turned profitable in last fiscal. The bank reported a 52 percent rise in net profit at Rs 828.95 crore for fiscal ended March 2021 against Rs 546.18 crore in the preceding fiscal. During the fiscal year, standalone income fell to Rs 82,859.50 crore from Rs 86,300.98 crore in 2019-20.

However, the lender reported a standalone net loss of Rs 1,046.50 crore in Q4 against net profit of Rs 506.59 crore in the year-ago quarter. The stock has fallen after 2 days of consecutive gain. The stock touched an intraday low of Rs 79.15 down 5.61% on BSE.

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The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages. The stock has gained 109% in one year and risen 32.2% since the beginning of this year.

In a month, the stock is up 21.8% Total 42.27 lakh shares changed hands amounting to turnover of Rs 34.53 crore.

Market cap of the lender fell to Rs 42,043 crore on BSE. The share hit 52-week high of Rs 99.80 on February 19, 2021 and 52 week low of Rs 37.50 on May 29, 2020

In Q4, net interest income (NII) rose around 4% to  Rs 7,107 crore against  Rs 6,798.4 crore year-on-year (YoY).

Provisions and contingencies in Q4 stood at  Rs 3,586 crore as compared to  Rs 3,434.6 crore in the previous quarter and  Rs 6,645 crore in the year ago quarter.

Asset quality fell as gross non-performing assets (NPAs) rose to  8.87% against 8.48% quarter-on-quarter (QoQ). Net NPAs rose to 3.09% in Q4FY21 from 2.39% in Q3FY21. Standalone income in Q4 was nearly flat at Rs 21,532.91 crore as compared to the year-ago quarter.

The bank said its board has approved raising of additional capital up to  Rs 5,000 crore comprising Rs 2,000 crore of Common Equity Capital by various modes including QIP (Qualified Institutional Placement), etc. in suitable stages and  Rs 3,000 crore, by way of Additional Tier I capital/Tier II capital instruments.

''Given the uncertainty because of COVID -19 pandemic, the Bank is continuously monitoring any material change in future economic conditions which may impact the Bank's operations and its financial results depending on the developments which may differ from that estimated as the date of approval of these financial results,'' it said.

"Bank moved to a new tax structure thus reporting a loss of Rs 1,047 crore because of DTA (deferred tax asset) reversal. Excluding the impact of the change in the tax regime, the bank would have reported a profit after tax of Rs 2,267 crore in Q4FY21 and Rs 4,143 crore in FY21," it said in a release.