Bank of Baroda, one of the company’s leading public-sector banks, is reportedly planning to offer rating-based lending to retail mortgage loan seekers, which involves giving loans based on credit scores. With this move, the customers with a good loan repayment track record and strong financials may end up availing loans at cheaper rate than a customer with a bad credit score. The move is expected to improve the quality of the bank's retail portfolio as it will provide loans based on the customer's credit profile.
The bank has posted a net loss of Rs 3230.14 crore for the quarter ended March 31, 2016 as compared to a net profit of Rs 598.35 crore for the same quarter in the previous year. However, total income of the bank has increased by 6.07% at Rs 12789.06 crore for quarter under review as compared to Rs 12057.39 crore for the quarter ended March 31, 2015.
