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Bank Of Baroda Q1 Profit Rises 79% To Rs 2,168 Crore

Bank of Baroda (BoB) posted a 79% rise in net profit of Rs 2,168 crore for the June quarter

<div class="paragraphs"><p>A Bank Of Baroda branch at Horniman Circle In Mumbai. (Source: Vijay Sartape/BQ Prime)</p></div>
A Bank Of Baroda branch at Horniman Circle In Mumbai. (Source: Vijay Sartape/BQ Prime)

State-owned Bank of Baroda (BoB) on Saturday posted a 79% rise in net profit of Rs 2,168 crore for the first quarter of the current fiscal, aided by a decline in bad loans.

The lender had earned a standalone profit of Rs 1,208 crore in the year-ago period.

Its total income in the first quarter of the current fiscal increased to Rs 20,119.52 crore compared to Rs 19,915.83 crore, according to a regulatory filing.

The lender's interest income also rose to Rs 18,937.49 crore from Rs 17,052.64 crore a year ago.

Non-interest income during Q1 FY22 improved by 12% to Rs 8,838 crore, boosted by fee income that climbed 15%

However, operating profit for the quarter declined by 19% to Rs 4,528 crore from Rs 5,707 crore a year ago.

On the asset quality front, the lender's gross non-performing assets (NPAs) improved in the June quarter to 6.26% from 8.86% in the year-ago period.

In absolute terms, the gross NPAs or bad loans declined to Rs 52,590.83 crore at the end of the first quarter of FY23 compared to Rs 63,028.78 crore a year earlier.

The net NPA too declined to 1.58% against 3.03% a year ago.

As a result, provisions other than tax and contingencies for bad loans declined to Rs 1,684.80 crore in the April-June FY23 against Rs 4,005.40 crore in the year-ago period.

As of June this year, the Provisioning Coverage Ratio stood at 89.38% while the net interest margin was stable at 3.02%.

Domestic advances of the bank increased to Rs 6,95,493 crore, registering a growth of 15.7%.

The capital adequacy ratio (CAR) at the end of the quarter stood at 15.46% with CET-1 at 12.97% on a standalone basis.

The organic retail loan portfolio of the bank grew by 23.2% led by growth in personal loan portfolio by 147.1%, auto loan by 25.6%, education loan by 20.5%, and home loan by 15.3% on an annual basis, it said.