Bank of Baroda shares spurt over 22% on hopes of profit after Q3 loss

Mumbai: Shares of Bank of Baroda Monday zoomed over 22 percent despite the lender recording the highest-ever quarterly loss in the nation's banking history as it remained confident of posting a "reasonable level" of profit next fiscal.

After surging 24.18 percent to Rs 142 in intra-day trade, shares of the company finally ended at Rs 139.55, reflecting a sharp gain of 22.04 percent on BSE.

At NSE, the stock soared 22.55 percent to end at Rs 139.35.

Following the sharp rally in the stock, the company's market valuation advanced by Rs 5,806.55 crore to Rs 32,154.55 crore.

On the volume front, 65.99 lakh shares of the company changed hands at BSE and over 5 crore shares were traded at NSE during the day.

Bank of Baroda on Saturday reported the highest-ever quarterly loss in the nation's banking history at Rs 3,342 crore for the October-December period after recognising and providing for the entire quantum of stressed assets identified through a special review undertaken by RBI.

The lender declared that there will be no more surprises in store for the bank, and that a process of reorganisation is underway.

Despite profits being badgered by an over two-fold jump in non-performing assets at over Rs 38,000 crore, the state-run bank asserted it will not seek any capital infusion from the government but would rather work on generating the money internally, including sale of non-core assets.

Its newly inducted Managing Director and Chief Executive P S Jayakumar said through the clean-up and reorganisation exercise, the bank is confident of posting "reasonable level" of profit next fiscal year.

"We have put the uncertainty behind us. If something has to be done, it might as well be done now. As far as we can see, we have taken all the required provisions, from here onwards, we expect a fair bit of stability in the outcome of the portfolio," Jayakumar had said.