Bank of Baroda wipes out early losses; up nearly 5% at close

Mumbai: Shares of state-run Bank of Baroda on Friday ended nearly 5 percent higher, wiping out the entire initial losses, following the company's Q2 results.

The stock which dipped 10 percent to Rs 143.55 in intra -day trade on BSE, later recovered the lost ground and ended 4.95 percent higher at Rs 167.40.

At NSE, shares of the company rose 4.79 percent to end at Rs 167.05.

Value buying at lower levels propelled buying in the stock.

"The stock fell 10 percent initially but recovered soon enough to close up by 5 percent for the day," said Achin Goel, Head: Wealth Management & Financial Planning, Bonanza Portfolio Ltd.

Bank of Baroda today reported a massive plunge of 88.7 percent in net profit at Rs 124.48 crore for the September quarter, mainly hit by sharp increase in bad loans provision.

The bank had reported a net profit of Rs 1,104.22 crore in the year-ago period, it said in a regulatory filing.

Total income during the quarter increased to Rs 12,300.40 crore from Rs 11,817.32 crore in the year-ago period, it said.

"During the quarter, bank detected a fraud in Ashok Vihar branch, New Delhi, and has reported the same to RBI and various investing authorities. The Bank has estimated a loss of Rs 11 crore on account of unreconciled entries pertaining to outward remittances by way of import advance payments, which is fully provided for," it added.

The gross bad loan ratio for the quarter rose to 5.56 percent as against 3.32 percent in the same quarter a year ago, it added.