Left with a spreading weakness in its loan book, BoB consciously reduced “unprofitable assets” in its international loan book, which shrank by a massive 15.4%. The management had indicated after its March quarter results that bad loan accretion would slow down. Jayakumar had said that most of the bad loans have been identified and boxed. Optically, it seems to have worsened the bad loan problem as ratios look appalling. Bank of Baroda’s (BoB’s) shares got hammered on Thursday, making it the biggest loser on the Street, while the broader market remained positive.

Source: Mint August 12, 2016 02:08 UTC