Vadodara headquarters Bank of Baroda on Wednesday posted its financial report for the quarter ended 30 September, wherein the bank reported a 24.4% year-on-year growth in net profit to 2,088 crore, supported by higher other income. In the fiscal first quarter, it had a net profit of Rs 1,209 crore.
The lender’s other income, which counts fees from third-party products, treasury income and others, increased by 23% to Rs 3,579 crore. In the quarter ended, BoB’s global gross advances saw a rise of 2.10% to Rs 7.34 lakh crore. Retail loans, totalling Rs 1.23 lakh crore of total loans, also rose by 10.3%, while corporate loans grew 0.3%, amounting to 2.73 lakh crore.
The lender’s total deposits were Rs 9.59 lakh crore in the quarter ended, up 0.5% on year. Global low-cost current account and savings account (CASA) ratio settled at 41.70% as of September 30, more than 36.71% from the prior-year period.
Consequently of sluggish loan growth, the lender’s net interest income— interest earned minus expended—rose 2.1% on year to Rs 7,566 crore in the second quarter. Global net interest margin saw a rise of 2.85% in the quarter ended from 2.78% YOY.
The lender’s asset quality ameliorated with the gross non-performing assets (NPAs) coming down to Rs 59,504 crore in the reporting quarter from Rs 65,698 crore in the prior-year period. The bank saw novel slippages of Rs 5,223 crore in the reporting quarter.
In terms of percentage, Bank of Baroda’s gross NPA ratio came down to 8.11% as of September-end from 9.14%in the prior-year period.
The bank’s management said that the bank’s total restructured loan book was at Rs 20,500 crore as of the end of the second quarter and only 20% of these accounts were under doubtful special mention account-1 and special mention account-2 category.
The bank’s credit cost stood at 1.46%. The bank still holds on to the 1.5%-2% credit cost guidance for the current financial year. Bank of Baroda’s capital adequacy ratio was 15.55%.