Shares of Bank of Baroda today zoomed over 24 per cent despite the lender recording country’s highest-ever quarterly loss as it remained confident of posting a “reasonable level” of profit next fiscal.
After making a positive opening, shares of the company surged 24.18 per cent to Rs 142 on BSE.
At NSE, the stock soared 19.78 per cent to Rs 136.20.
Bank of Baroda on Saturday reported the highest-ever quarterly loss in the nation’s history at Rs 3,342 crore for October-December after recognising and providing for the entire quantum of stressed assets identified through a special review undertaken by Reserve Bank.
The lender declared that there will be no more surprises in store and that a process of reorganisation is under way.
Despite profits being badgered by an over twofold 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.