The Bank of Baroda, a public sector lending firm, has experienced a net loss of 10,988 crore, according to the Reserve Bank of India's risk assessment report. This was largely due to their granting bad loans and investing in assets that failed to perform. In addition, the bank had underreported certain losses earlier in the year.
As the calendar year draws to a close, this has led to a certain amount of unease in the financial and banking communities. Significantly, Bank of Baroda's stock value on the BSE fell following the release of the RBI's report. The stocks fell by 2.7%, to approximately Rs. 99 per share.
Bank of Baroda, currently, represents the amalgamation of three banks into a single nationalized entity. The erstwhile Vijaya Bank and Dena Bank had absorbed into the Bank of Baroda earlier this year. Since the latter two were chronically underperforming, the financial community, while uneasy, was not hugely shaken by the parent bank's fall in stock. Many shareholders are optimistic that the stock, and bank, will pick up again.
