Bank of Baroda(BoB) Q2 net profit rises 19.6% yoy

Bank of Baroda's Q2FY19 standalone revenue has improved by 7.5% yoy to Rs13,430cr. Its NII for the quarter came at Rs4,492cr as against Rs3,720cr yoy, which has improved by 20.8%. The bank’s net profit was 19.7% up yoy to Rs425cr (Rs355cr in Q2FY18). Further, the bank's net profit was ahead of the consensus estimates of Rs475cr when considered other paramters like assest quality improvement, better NIMs, lower slippages, etc. Its GNPA for Q2FY19 stood at 11.8% against 12.46% qoq, which has declined by 68bps. NNPA for the quarter came at 4.86% against 5.4% qoq, which has declined by 54bps.

• The provisions for the quarter has gone up by 4.3% yoy to Rs2,429.5cr.
• Domestic CASA deposits registered a growth of 11.63 % yoy.
• Percentage of CASA deposits to Total Domestic Deposits for Q2FY19 increased to 40.48% from 39.22 % yoy.
• Domestic Deposits stood at Rs4.84 lakh cr for Q2FY19 up by 8.17% from 4.47 lakh cr as on September 30, 2017.
• Domestic advances grew by 20.37% to Rs3.37 lakh cr for Q2FY19 from Rs2.8 lakh cr yoy.
• Contribution of Bank's International Business at the end of quarter was 21.02%.
• Net Interest Margin (NIM) improved to 2.61% in September 2018 quarter from 2.34% in September 2017. NIM of international operations improved to 1.66% from 1.15% last year.
• Fresh slippage was at Rs2,281cr, lowest in seven quarters.
• Credit cost decreased to 1.31% for the quarter under review from 1.82% last year.
• Provision for NPAs at Rs1,467cr was at a nine-quarter low.
• Bank made a specific provision of Rs241cr for a financial services company. Provision for NPAs declined by 20.57% on yoy basis.
• Exposure in accounts under NCLT 1 list was Rs3,920cr and NCLT 2 list was Rs4,227cr as on September 30, 2018.
• Provision coverage under NCLT 1 and NCLT 2 list was 68.52% and 66.82% respectively.
• Capital Adequacy Ratio of the Bank at 11.88 % continues to be above regulatory norms. Tier 1 capital ratio was 10.25 % and CET 1 Capital was 9.05%.

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BoB-Dena-Vijaya Merged Bank to get growth capital

The government will provide an additional capital cushion to the proposed merged bank to be formed by amalgamation of Bank of Baroda, Dena Bank and Vijaya Bank to start the new bank on a stronger footing, a senior government official told ET. 

“We will like to have a cushion of at least 50-100 basis points above the existing regulatory capital requirements. The bank will be provided with that growth capital,” he added. The actual capital infusion requirement in money terms will be available only after financials of the July-September quarter are available. 

In September, the government had proposed a merger of the three banks to create the country’s third biggest lender.Capital adequacy ratio (CAR) will reach 11.5% in 2019 under Basel III norms, and according to government data, the proposed combined entity had CAR of 12.25% by the end of June 2018. 

“This may be further impacted as these banks finish their due diligence and make provisioning for other requirements. If we want the combined entity to have a credit growth of 15%, we will need growth capital,” the official quoted earlier, said. 

The amalgamation will be the first three-way consolidation of banks in India, with a combined business of Rs 14.82 lakh crore. The government expects synergies to lead to larger distribution network and more business for the new lender. The government has started the exercise to look at capital requirements of all PSBs and has been holding meetings with their top deck. 

“We may have to give some support to Dena Bank in this fiscal if it falls short of regulatory requirements. For now, the other two lenders look good in terms of provisioning requirements,” said a finance ministry official. 

Last year, the government had announced a Rs 2.1 lakh crore bank recap plan of which Rs 1.35 lakh crore was to be given through re-capitalisation bonds, and the balance Rs 58,000 crore was to be raised from the market by the banks. 

So far, the government has infused Rs 70,000 crore through recap bonds, and the balance Rs 65,000 crore will be given in this fiscal. In July 2018, Rs 11,336 crore was infused in five PSBs to help them maintain regulatory norms. 

Source- Economic Times

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BoB, Vijaya Bank, Dena Bank set up panels to merge operations

Bank of Baroda (BoB), Dena Bank and Vijaya Bank have decided to set up internal committees, which will help integrate their functions before the merger happens, said a person familiar with the development. In a meeting on Wednesday, the bankers also decided to appoint three separate valuers to arrive at share swap ratios, the person said, adding that the valuer appointed by one bank will also evaluate the other two banks, before a common ratio is arrived at and sent to the government. This was the second meeting after the merger announcement.

The committees will comprise the chief executive officers (CEOs) and executive directors of the three banks. “We have decided to form a few internal committees to integrate functions in the three banks. They include committees on credit, human resources (HR) and information technology (IT),” the person said, requesting anonymity.

Mint had reported on 3 October that although the three banks use the Finacle core banking solution developed by Infosys Ltd, they have different versions of the software. While Dena Bank and Vijaya Bank are on Finacle 7.2, Bank of Baroda had recently upgraded to Finacle 10.2.

On 10 September, the government had proposed the merger of the three state-owned banks. The merged entity, comprising two relatively stronger banks and a weak one, will be the third-largest lender in India, after State Bank of India and HDFC Bank Ltd, with a total business of ₹14.82 trillion.

Following the merger announcement, the managements had assured the staff that the government has decided to retain the banks’ individual identities even after the bank merger.

Analysts were wary of the human resource complications. A research report by Kunal Shah of Edelweiss Securities said challenges on human resources, process integration, branch rationalization and management bandwidth, will pose integration risks. “Roadblocks, for example, due to agitation from employees cannot be ruled out.”

A Kotak Institutional Equities note said that the merged entity will have 2,205 branches in western India, while the south and north will have 846 and 713 branches, respectively.

This is the third major restructuring in the public sector banking space by the government. The first was the merger of the five associate banks of SBI with itself. The merger had resulted in a sharp jump in the combined entity’s bad loans portfolio, crimping its profit. The associate banks made a loss of ₹5,792 crore for the March quarter of 2016-17 and ₹10,243 crore for the entire year. This resulted in the consolidated net profit of SBI going down to a mere ₹241 crore, while the stand-alone net profit was ₹10,484 crore.

Source - Livemint

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Govt announced merger of Bank of Baroda with two banks to form India's 3rd Largest Bank

The government has announced that Bank Of Baroda, Vijaya Bank and Dena Bank will be merged into a single bank which will become India's third largest bank. Rajeev Kumar, Secretary Department of Financial Services, said in a press conference today that employees interest would be protected in the merger process. 

The merger of five SBI associate banks was done without any job losses, he said. The three banks will continue to work independently till the merger. 

Kumar said the merger would help improve operational efficiency and customer services. He said it was time for the next generation of strategic banking reforms. 

The government had initiated numerous reforms over the last four years, especially with respect to banking and to ensure clean lending process, he said.

He said the stock of non-performing assets (NPAs) had reduced by Rs 21,000 crore in last quarter. Banks recovered Rs 36,551 crore in the first quarter of FY19. There was a need to increase scale and synergy for growth momentum to continue, he said.

Kumar talked about various steps the government had taken to clean banking including the Insolvency and Bankruptcy Code (IBC). He said now people knew that if they had taken loan, they would have to return it. He said the IBC was fundamentally changing the creditor-debtor relationship in India. He said all loans over Rs 150 crore would be monitored by a separate vertical in each bank.

"The government is keen to take steps so that history isn't repeated as far as NPAs are concerned. The government approach is to make the banking sector’s fundamentals strong," he said.  

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BOB Financial Recruitment for Various Posts 2018

BOB Financial Solutions Limited has published Advertisement for below mentioned Posts 2018. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

Posts:

• Recruitment of Officer II - Operations ( Loan Against Securities) 
• Recruitment of Asst. Manager - Corporate Sales ( Loan Against Securities) 
• Recruitment of Asst. Manager - Risk & Credit ( Loan Against Securities) 
• Recruitment of Asst. Manager ( IT)- Mobility Developer 
• Recruitment of Asst. Manager - Operations ( Loan Against Securities) 
• Recruitment of AVP - Head of Treasury 
• Recruitment of AVP - IT Management ( Loan Against Securities) 
• Recruitment of Manager - Collections 
• Recruitment of Officer I / Officer II / Asst. Manager - Area Sales Manager

How to Apply: Eligible candidates may send their application & necessary documents to given address in the advertisement.

Advertisement: Click Here

Last Date: 04-09-2018

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Two Bank of Baroda officials held for Rs 17.5 crore fraud

The Central Bureau of Investigation (CBI) arrested two employees of the Bank of Baroda (BoB) in connection with a fraud amounting to Rs 17.5crore that took place at the Diwada Colony branch of the bank in Mahisagar district. The employees were remanded to four days in CBI custody on Thursday. 

Those arrested include special assistant Manmohan Singh Meena and joint manager of the branch Satish Kumar Bhaskar. Police suspect involvement of others in he fraud. 

The CBI’s anti-corruption bureau (ACB) at Gandhinagar had registered an offence regarding the fraud on July 23 after a complaint dated July 5 from assistant general manager and regional head of the Godhra region Vivek Shukla. The irregularities had come to light during an internal audit by the bank following which the complaint was filed after suspending three officials, 

The internal audit was conducted after a special assistant Manmohan Singh Meena was transferred from the Diwada Colony branch on February 28. It had come to light that large amount of overdraft balance had remained unadjusted for a considerably long time in a New Inter-branch Settlement Account. 

On inquiring about this, it came to light that there were several suspicious entries that were created by Meena and verified by joint manager of the branch Satish Kumar Bhaskar. These entries were made in the bank’s office accounts, government accounts and accounts of various customers. 

Officials in the bank said that large sums were debited from the bank’s office accounts and government accounts. These were then deposited into other accounts to swindle money. Fraudulent credits were made into the accounts of the Kadana taluka development officer (TDO) and the amounts were transferred from the TDO’s accounts to those of others. The money was eventually withdrawn from a series of accounts.

Interestingly, those whose accounts were credited fraudulently did not raise a complaint or and the money was also withdrawn and used. The bank sees this as a connivance of the account holders in the scam.

The complaint moved by the bank mentions Meena and Bhaskar as the prime accused. Sources said that the CBI investigations could lead to other accused in the case. The bank had also suspended the branch manager Lakhana Oraon after the fraud came to light, but his role in the matter is being investigated.

When contacted, Shukla said that the CBI had informed them about the arrest of the accused. “The entire staff of the branch was transferred after the fraud came to light. We cannot disclose more in wake of the ongoing investigations,” said Shukla. 

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Bank of Baroda Financial Solutions (BOBFS) Recruitment for Assistant Manager, Officer & other Posts 2018

Bank of Baroda Financial Solutions (BOBFS) has published Advertisement for below mentioned Posts 2018. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

Posts:

• Program Manager: 01 Post
• Officer I / II Sales Support Specialist: 01 Post
• Assistant Manager: 01 Post
• Senior Business Analyst: 01 Post
• Officer I: 01 Post
• Officer II: 01 Post
• Associate Vice President: 01 Post
• Officer I/ II: 01 Post
• Officer I: 01 Post
• Manager: 01 Post
• Officer I/ II: 01 Post
• Officer: 01 Post

Total No. of Posts: 12

Educational Qualification: Please read Official Notification for Educational Qualification details.

Selection Process: Candidates will be selected based on an interview.

How to Apply: Suitable and willing candidate may submit his/her profile on email

careers@bobcards.com with subject as POST NAME:___

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Last Date: 16-08-2018

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SBI, PNB, Bank of Baroda plan performance-linked salary to officials

In a first-of-its-kind move in public sector banks (PSBs), State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BoB) are mulling performance-linked salary structure for their top brass. They are planning to introduce this pay structure for individuals above the general manager grade. However, for this move to follow through, the government will have to give its nod.

Sunil Mehta, MD and CEO of PNB told Business Standard that the bank is seriously considering a system of performance-based incentives. He added that there will be a component of variable and fixed pay but the structure will evolve slowly. People in the know said that SBI and BoB are planning to follow suit and working on a compensation framework.

Although this is a new structure for PSBs, it has been there for a while in many private banks. Depending on the performance of the bank and the individual, employees are offered variable pay in the form of cash or stock-linked instruments with employee stock option plans.

The proposed revised salary structure comes after opposition from bank unions against six PSBs - PNB, SBI, BoB, United Bank of India, Indian Bank and Oriental Bank of Commerce - for restricting the latest wage negotiations up to senior manager level. The unions are demanding a wage hike for up to scale VII that includes positions like general managers, deputy general managers, divisional managers and assistant general managers.

Bank unions are, however, not in favour of the performance-based salary structure. Ranvinder Gupta, Joint General Secretary of All India Bank Officers' Confederation said, "The demand of the trade unions has been one rank, one pay. We are not in the corporate sector, where people are hired for performing a particular job. It will be difficult to evaluate performance in all positions in PSBs."

Source- Business Today

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Bank of Baroda(BoB) profit more than doubles in Q1

Bank of Baroda(BoB) on Friday reported a more than two-fold jump in net profit at Rs 528.26 crore for the first quarter of 2018-19 as provisions for bad loans dropped.

The bank had reported a net profit of Rs 203.39 crore in the same quarter of 2017-18. The bank had reported a huge net loss of Rs 3,102.34 crore in the previous January-March quarter.

Total income for the April-June period of 2018-19 edged up to Rs 12,787.71 crore from Rs 12,103.86 crore in the same period of preceding fiscal, the bank said in a regulatory filing.

The net interest income (NII) increased by 28.66 percent year on year and 9.47 percent quarter on quarter. Operating income (NII and other income) increased by 11.56 percent from a year ago.

Net Interest Margin (NIM) improved to 2.65 percent in June 2018 quarter from 2.51 percent during previous quarter, the bank said. Core fee income increased by 16.76 percent to Rs 794 crore. Bank's provisions for bad loans were brought down to Rs 1,759.72 crore for the first quarter of current fiscal from Rs 2,156.69 crore for the same period of 2017-18.

Gross NPAs in value terms dropped to Rs 55,874.81 crore at June-end this year from Rs 56,480.39 crore at end-March, but were up compared to Rs 46,172.77 crore at the end of June 2017.

Overall provisions and contingencies also came down to Rs 2,165.64 crore from Rs 2,368.05 crore.

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Bank of Baroda starts 'aggressive action' to recover bad loans of large amount

State-owned lender Bank of Baroda has set up a team of lawyers, called the ‘War Room Team’, to deal with bad loans whose recovery is now embroiled in legal complications, reports The Economic Times.

BoB has 380 high-value bad loan accounts, in which the bank is either the sole lender or the consortium leader. The total outstanding amount of these loans is about Rs 15,000 crore.

The bank witnessed a net loss of Rs 3,102 crore in the January-March quarter of 2018. In the same period last year, it had made a net profit of Rs 154 crore.

Following this, the bank has taken up several “aggressive” actions for recovery to bring back the bank’s profit. “We have started directly monitoring the progress of enforcement action in those high-value accounts,” Venugopal Narayanan, head (legal), Bank of Baroda, told the publication.

The lender has also created a stressed asset management vertical, under which 15 existing stressed asset-recovery branches and another 32 newly-created regional stressed asset recovery branches are working.

The bank has arranged for special grooming of officers on various modes of recovery before they are posted to the stressed assets branches to yield better results.

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Six PSBs have given mandate to IBA to Settle 11th BPS up to Scale III only

Six Public Sector Banks have given their mandate to negotiate salary of all the employees of banks. The six banks which are State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB), Indian Bank, Union Bank of India and Oriental Bank of Commerce have given conditional mandate to IBA to restrict negotiate up to Scale III or IV only.

Bank’s Union have shown their displeasure against the unconditional mandate of these banks. They have written to Department of Financial Services to relook the matter and lodged their protest against the bank’s management decision.

It’s difficult to say at this moment whether decision taken by banks are correct or not to settle salary only up to Scale III/IV in 11th Bipartite Settlement or not ?

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Bank of Baroda(BoB), Korea's KB Financial Group ink MoU to set up financing corridor

Public sector lender Bank of Baroda on Wednesday said it has inked an agreement with South Korea's KB Financial Group to set-up financing corridor and development of digital payment ecosystem.

"Bank of Baroda signed a Memorandum of Understanding (MoU) with KB Financial Group Inc (KBFG), Korea, for comprehensive business cooperation between the two organisations to establish In-Ko financing corridor and development of innovative digital payment eco-system," the bank said in a release.

The MoU was inked on July 9 during India-Korea Business Forum. It was inked between Bank of Baroda MD & CEO PS Jayakumar and Yoon Jong-Kyum Chairman, KB Financial Group.

"Through this engagement, Bank of Baroda and KB Financial Group will work together on creating a new digital payments ecosystem in India and creating the In-Ko corridor for providing reciprocal financial services to corporate and retail Clients of Bank of Baroda and KB Financial Group," Jayakumar said in the statement.

He said the bank will work jointly with KB Financial Group by leveraging the potential synergies generated between Bank of Baroda's diverse domestic network and KB's business relations with Korean conglomerates.

In line with India's vision of look east and digital India, the proposed In-Ko corridor will have two legs-- corporate and retail. The former will comprise of corporate finance, trade finance, correspondent banking relationship and establishing a dedicated Korean desk at the bank.

The retail leg will include local currency accounts, remittance facilities, digital payment services and financial assistance for consumption and asset purchase.

KB Financial Group and its subsidiaries, including KB Kookmin Bank and, KB Kookmin Card Co Ltd, provide a broad range of banking and related financial services to consumers and corporations primarily in Korea.

It also caters to selected international markets in services like commercial banking operations, investment and securities operations, real estate and finance operations.

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One of the PSU banker is being considered for Axis Bank top job

P S Jayakumar, chief executive of Bank of Baroda (BoB), could become the successor of Axis Bank CEO Shikha Sharma. Earlier this year, the appointments committee of the bank had hired Egon Zhender to identify a new CEO after Sharma said she would step down prematurely on December 2018 after the Reserve Bank of India (RBI) raised questions over her three-year term.

According to a TOI report, the Zhender-led search panel is understood to be considering Jayakumar, a former Citibanker and the first lateral recruit into the top position at a public-sector bank and whose term comes to an end this year.

Jayakumar, 56, joined BoB on October 2015 and was heading VBHC Value Homes prior to taking charge of the lender. Those close to him said that he had taken permission from private equity investors in the earlier firm to take public office and was not keen on the private sector. However, uncertainty over what the government wants to do with PSBs might alter his plans.

Jayakumar is one of the only two bankers selected by the government to head a PSB. The other being Rakesh Sharma, former CEO of private lender Lakshmi Vilas Bank, was appointed to head Bengaluru-based Canara Bank.

In his three-year tenure, Jayakumar has been on the forefront at cleaning up the bank’s balance sheet and drawing up a road map for growing the retail business and investing in technology.

The board’s appointment committee would have to come up with a shortlist soon considering that a candidate would need to be finalised by September 2018. Within the bank, deputy MD V Srinivasan and executive director Rajiv Anand are potential candidates.

Once the search panel shortlists the candidates, the board would have to interview each of them and make a choice. This process is expected to take a few weeks. Once the CEO is finalised, the appointment has to be approved by the shareholders and the RBI — under its fit and proper guidelines.

In July last year, Axis Bank reappointed its CEO & MD Shikha Sharma for three years from June 2018. It was her fourth three-year term. In April this year, it was reported that the RBI had asked the Axis Bank board to reconsider her new term due to bank’s performance and deteriorating asset quality.

Sharma’s term will come to an end in December this year. In April, the board of directors of the bank wrote to the RBI, saying that Sharma had requested them to reduce her fourth term to December 2018, instead of May 2021.

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Bank of Baroda Manipal Probationary Officer - PGDBF (PO) Notification 2018

Bank of Baroda PGDBF (PO) has published the notification of Probationary Officer (PO) from Manipal Academy of Higher Education (MAHE) to be conducted at the Baroda Manipal school of Banking.  The course consists of -9- month on-campus program and on successful completion of the course, the candidate would be awarded a Post Graduate Certificate in Banking & Finance and will be offered appointment in the Bank as Probationary Officer in Junior Management Grade/Scale-I.  Check below for more details.

The course consists of -9- month on campus program and on successful completion of the course, the candidate would be awarded a Post Graduate Certificate in Banking & Finance and will be offered appointment in the Bank as Probationary Officer in Junior Management Grade / Scale-I.

Number of Students intake per batch :

• Unreserved - 303
• OBC -  162
• SC - 90
• ST - 45
• Total - 600

Educational Qualification : A Degree (Graduation) with minimum 55% (50% for SC/ST/PWD) marks in any discipline from a recognized University or any equivalent qualification recognized as such by Central Government. (As on 02-07-2018)

Age Limit : Age (as on 02.07.2018) Minimum 20 years - Maximum 28 years:
A candidate must have been born not earlier than 03.07.1990 and not later than 02.07.1998 (both dates inclusive)

Application Fee : Application Fees/ Intimation Charges (Payable from 12.06.2018 to 02.07.2018 (Online payment) both dates inclusive

• Rs. 100/- for SC/ST/PWD candidates.
• Rs. 600/- for all others

PROGRAMME FEES:
The fees for this Course will be Rs. 3,45,000/- (all inclusive of boarding, Lodging and course fees, other fees, etc.) plus applicable taxes to be paid by the student.
Apart from the above course fees, the exam fees for undergoing various Certification exams viz. NISM (Mutual Funds) and NISM (Depository services) as mandated under the course will have to be borne by the candidates, as per the fees charged by NISM from time to time for conducting these Certification exams. Currently, the fees for NISM (Mutual Funds) and NISM (Depository services) certification exams comes to Rs. 2500/- per candidate.

After completion of 5 years of active service in the Bank, the course fee of Rs. 3,45,000/- shall be reimbursed by the Bank as ‘Loyalty Bonus’ to the officer who pass out from Baroda Manipal School of Banking.


How to Apply : Interested Candidates may Apply Online Through official Website.

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Apply Online : Click Here

Important Dates :

• Starting Date of Online Application : 12-06-2018
• Last Date to Apply Online and Payment of Fees : 12.06.2018 to 02.07.2018
• Last date for Online Registration including Edit / Modification of Application by candidates (including far flung areas) : 02.07.2018
• Download of Call letters for Online Examination (Tentative): After 18-07-2018
• Date of Online Examination (Tentative): 28-07-2018

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Fitch downgrades viability rating of SBI, Bank of Baroda(BoB)

Fitch Ratings on Wednesday downgraded the Viability Rating (VR) of State Bank of India and Bank of Baroda by one-notch, reflecting weak risk profile due to negative effect of poor asset quality. 

Fitch, which has a negative sector outlook on Indian banks, however, affirmed the 'BBB' Long-Term Issuer Default Ratings (IDRs) of SBI, BoB, Canara Bank and Bank of India (BoI) with a stable outlook. 

"Fitch has downgraded the Viability Rating (VR) of SBI and BoB by one-notch to 'bb+' and 'bb', respectively, reflecting their weakened intrinsic risk profile due to the negative effect of persistently poor asset quality and earnings on their capital position. The banks' core capital buffers also appear more vulnerable to moderate shocks," the ratings agency said in a statement. 

As many as 19 of India's 21 state banks reported losses in the last fiscal, cumulatively wiping out almost all of the government's $13 billion capital injections during the year, Fitch said. 

It said the one-notch downgrade of SBI's VR to 'bb+' from 'bbb-' reflects the bank's vulnerable core capitalisation from its prolonged asset quality problems and weak earnings. 

"We believe more fresh capital is needed for growth and to manage heightened balance-sheet stress," Fitch said. 

SBI's non performing loan ratio increased further to 11 per cent and have increased risk for core capitalisation, it added. 

With regard to BoB it said the one-notch downgrade of BoB's VR to 'bb' from 'bb+' reflects increasing pressure on its capital position from extended financial weakness in terms of NPLs and earnings. 

Its NPL ( non-performing loan) ratio jumped to 12.3 per cent. The bank's portfolio of watch-list loans is around 2% and can add to asset-quality pressure if NPL resolution slows, Fitch said. 

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Govt. plans to make 2nd largest bank after SBI

The government is considering merging at least four state-run banks, including Bank of Baroda, IDBI Bank Ltd, Oriental Bank of Commerce and Central Bank of India, two people aware of the matter said. If the plan goes through, the merged entity will become the second-largest bank in the country after State Bank of India, with combined assets of ₹16.58 trillion.

With the merger, the government hopes to help stem the rise in bad loans in their books at a time when poor asset quality has crippled the lending ability of some of them. The merger will also allow the weak banks to sell assets, reduce overheads and shut money-losing branches.

The four banks that are being proposed to be merged are under pressure with combined losses of ₹21,646.38 crore in the year ended 31 March.

The department of financial services, under the finance ministry, is also simultaneously considering a 51% stake sale in IDBI Bank to a strategic partner, for ₹9,000-10,000 crore, the people said on condition of anonymity.

“Dilution of (government) stake in IDBI Bank could also be achieved through stake sale to private equity investors,” said one of the two people cited above. Queries emailed to IDBI Bank, Bank of Baroda, Oriental Bank of Commerce and Central Bank of India did not elicit any response.

On 21 May, IDBI Bank told the exchanges in a regulatory filling that a special resolution will be placed for further issue of capital at its board meeting of 25 May.

On the following day, IDBI Bank informed the exchanges about a scrutinizer report for an increase in the bank’s authorized capital from the existing ₹4,500 crore to ₹8,000 crore.

The increase in authorized capital could facilitate the sale of a stake of 51% or more, in the form of a preferential issue to investors.

Government officials declined to comment, saying the matter is highly market sensitive. In his 2016 budget speech, finance minister Arun Jaitley said that the government was considering reducing its stake in IDBI Bank to less than 50%.

Source- Livemint

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Bank of Baroda(BoB) slumps to loss in Q4 on higher NPA provisioning

Bank of Baroda on Friday reported Q4 loss of Rs3,102 crore on the back of lower other income and higher provisioning against non-performing assets (NPAs).

The bank posted a net loss of Rs3,102.34 crore for the March quarter compared to a profit Rs154.72 crore in the year-ago period. The loss was higher than the Rs28.03 crore estimated by a Bloomberg poll of 18 analysts.

Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 11.74% to Rs4,002.26 crore from Rs3,581.86 crore in the corresponding period last year. Other income, which includes core fee income, lost 14.23% to Rs1,695.90 crore in the three months from Rs1,977.28 crore a year ago.

Gross NPAs, as a percentage of total advances, were at 12.26% in Q4 compared with 11.31% in the December quarter and 10.46% in the year-ago March quarter.

Provisions during the quarter increased two-and-a-half fold to Rs6,672.38 crore as against Rs2,262.97 crore in the year-ago quarter. In the October-December quarter, the bank had set aside Rs3,426.51 crore in provisions.

Post-provision, the net NPA ratio was at 5.49% against 4.97% in the October-December quarter and 4.72% in the year-ago quarter.

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Bank of Baroda (BOB) Recruitment for Specialist Officers - Project 2018-19

Bank of Baroda (BOB) has published Advertisement for below mentioned Posts 2018. Other details like age limit, educational qualification, selection process, application fee and how to apply are given below.

Posts: Specialist Officers - Project 2018-19

Vacancies Details:

• MSME - Sales / Relationship Management (SMG/S - IV): 25 Posts
• MSME - Sales / Relationship Management (MMG/S - III): 59 Posts
• MSME Monitoring/ Processing of Loans (SMG/S - IV): 75 Posts
• MSME Monitoring/ Processing of Loans (MMG/S - III): 62 Posts
• Finance / Credit (MMG/S - III): 100 Posts
• Finance / Credit (MMG/S - II): 40 Posts

Total No. of Posts: 361 Posts

Educational Qualification: Please read Official Notification for Educational Qualification details.

How to Apply: Interested Candidates may Apply Online Through official Website.

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Apply Online: Click Here

Important Dates:

Starting Date of Online Application & Fee Payment: 25-04-2018

Last Date to Apply Online & Fee Payment: 17-05-2018

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