Bank of Baroda (BoB) on Tuesday reported a 35% year-on-year (y-o-y) drop in net profit to Rs 355.36 crore for the September quarter as provisions rose 30% over the same period a year ago to Rs 2,329 crore. Net interest income (NII) — the difference between interest earned and interest expended — rose 8.6% y-o-y to R3,720 crore, and the net interest margin (NIM), a key profitability ratio, stood at 2.31% in Q2, up 19 basis points (bps) on a sequential basis. Asset quality at the bank showed an improvement, with the gross non-performing asset (NPA) ratio falling to 11.16% from 11.4% at the end of June, and the net NPA ratio declining to 5.05% from 5.17% a quarter ago. Provision coverage ratio (excluding technical write-offs) remained unchanged from the June-end level of 57.73%. The bank’s total advances grew 9.4% y-o-y to Rs 3.87 lakh crore, driven by domestic retail loans, which grew 25.5% y-o-y to Rs 2.46 lakh crore.
BoB saw total deposits rise 2.8% on a y-o-y basis to Rs 5.83 lakh crore. Current account savings accounts (CASA) deposits grew 26.7% and the share of CASA deposits in total domestic deposits rose to 39.22% at the end of June from 34.23% a year ago. Slippages fell 41% on a sequential basis to Rs 2,586 crore in Q2FY18. Recoveries during the quarter stood at Rs 909 crore, upgradations at Rs 640 crore and write-offs at Rs 1,768 crore. The bank’s exposure to the accounts referred to the National Company Law Tribunal (NCLT) as per the Reserve Bank of India’s (RBI) first list is Rs 7,672 crore.