India’s third largest lender now, courtesy the merger, Bank of Baroda detailed key metrics as of 1 April, the day the merger took effect. Ergo, the provision coverage ratio was 77.72% for the merged entity, up from 67.6% for Bank of Baroda pre-merger. To keep its balance sheet reasonably healthy, Bank of Baroda had to pay a price. The merged entity’s Common Tier-I equity ratio was 8.56% compared with 10.4% on a standalone basis for Bank of Baroda. There are enough reasons for worry, given that the bank has among the largest exposures to non-bank lenders.

Source: Mint July 04, 2019 11:48 UTC