It added that, in the absence of the revised guidelines, on a standalone basis, the bank would have shown a net profit of R1,320 crore, an increase of 30.5% y-o-y.
During the quarter under review, the bank's total income was boosted by strong gains in forex profits and was up 9.7% y-o-y at R10,623 crore. Its net interest income (NII) was R3,057 crore in the December quarter, a rise of 7.6% y-o-y.
The lenders domestic net interest margin (NIM) was 2.95% and was up 25 bps from 2.7% in the September quarter. Bank of Baroda would like to avoid aggression as the economy is still in the recovery mode, but will try to grow a tad higher than the industry average to protect its market share, said Rupa Rege Nitsure, the banks chief economist.
According to a RBI projection, aggregate deposits would grow 14.0% and non-food credit 15.0% in the current financial year for the banking industry.
The bank cut its provisions towards bad loans and contingencies by 25.98% to R761.87 crore in Q3 as there was a sizable writeback on investment depreciation against the equity portfolio. Its NPA provisioning prior to the writeback was R845 crore in Q3.
BoBs core performance came in a shade above our expectations. The asset quality did deteriorate with GNPA/NNPA rising 9.5%/4.9% q-o-q, but the net addition to impaired assets remained lower than in the previous quarter, a positive in our view, said Kotak Securities banking analyst Saday Sinha.
The asset quality of the bank also deteriorated as its NPAs rose 17 bps to 3.32% compared to 3.15% in the September quarter, and its net NPA ratio was up sequentially 2 bps in Q3.
Our debt restructuring pipeline for the January-March quarter is R1,500-2,000 crore, said BoB chairman and managing director SS Mundra.
Its total advances grew 17.8% to R3,52,446 crore and total deposits were up 21.5% to R5,03,772 crore on a y-o-y basis. On the BSE, the BoB scrip closed at R537.75, down 0.87%.