Friday the 13 for banks? Banking stocks bleed due to huge losses (Roundup)

Chennai/Kolkata, May 13 (IANS) It was bloodbath on the stock market on Friday the 13th for several government-owned banks as they posted huge losses or lower profits and ballooning bad loans.

The bad or insipid results had their impact on the bourses with the stock prices of Bank of Baroda, UCO Bank, Allahabad Bank and Union Bank of India moving into red zone as compared to previous day’s close.

Bank of Baroda, in a regulatory filing in the BSE, said it has posted a net loss of Rs.5,395.55 crore for the year ended March 31, 2016 as compared to a net profit of Rs.3,398.43 crore for the year ended March 31, 2015.

The bank’s total income went up to Rs.49,060.13 crore last fiscal as against Rs.47,365.55 million for 2014-15.

Last fiscal the bank’s provisions for bad loans were Rs.15,513.65 crore as against Rs.4494.50 crore for the year ended March 31, 2015.

Bank of Baroda’s gross and net bad loans as on March 31, 2016 stood at Rs.40,521.04 crore and Rs.19,406,46 crore respectively, as against Rs.16,261.45 and Rs.8,969.45 crore respectively.

On its part, the Allahabad Bank posted net loss of Rs.743.31 crore last fiscal as compared to net profit of Rs.620.90 crore for the year ended March 31, 2015.

The bank said its total income for the period under review came down to Rs.20,795.07 crore from Rs.21,712.13 crore earned for 2014-15.

Last fiscal, the bank’s provisions for bad loans shot up to Rs.5,253.19 crore from Rs.2856.66 crore the previous fiscal. Its gross and net bad loans as on March 31 this year stood at Rs.15,384.57 crore and Rs.10,292.51 crore respectively as against Rs.8,357.97 and Rs.5,978.88 crore respectively at the end of 2014-15.

The Kolkata-based UCO Bank posted a net loss of Rs.2,799.25 crore last fiscal as compared to net profit of Rs.1,137.80 crore for 2014-15.

Its total income has decreased from Rs.21,362.54 crore for the year ended March 31, 2015 to Rs. 20,157.28 crore for the year ended March 31, 2016.

The only silver lining was the Union Bank of India which closed last year with a net profit of Rs.1,351.60 crore as compared to Rs.1,781.64 crore for the year ended March 31, 2015.

The bank’s total income has increased to Rs.35,606.96 crore in 2014-15 to Rs.35,830.54 crore for the year ended March 31, 2016.

Last fiscal, the bank’s provisions for bad loans shot up to Rs.3,877.24 crore from Rs.3,040.09 crore for the year ended March 31, 2015, while its gross and net bad loans as on March 31, 2016 stood at Rs.24,170.89 crore and Rs.14,025.94 crore respectively.

At the end of 2015-16, the bank’s gross and net bad loans were at Rs.13,030.87 and Rs.6,918.97 crore respectively.

The bank’s board has recommended a dividend of Rs.1.95 per share with a face value of Rs.10 each.

–IANS

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