Bank of Baroda’s net profit fell 5.5% year-on-year to Rs 1,104.22 crore in the quarter ended September on account of an increase in the gross non-performing assets, which stood at 3.32% in the quarter compared with 3.11% in the June quarter. The domestic net interest margin (NIM) improved to 3.02% in the June quarter.
The net interest income rose 17.5% y-o-y to Rs 3,401.11 crore from Rs 2,894.73 crore in the same quarter last fiscal.
“The bank has taken steps to improve bottomline rather than concentrating more on the top line. Our performance was focused on improving margins and better credit management,” said P Srinivas, Bank of Baroda executive director. Total income rose 13% y-o-y to Rs 11,817.32 crore against Rs 10,447.31crore, in the same period last fiscal.
The asset quality deteriorated year-on-year in the September quarter with gross NPA ratio rising to 3.32% to Rs 13,057.57 crore from Rs 12,086.81 crore in the preceding quarter. The net NPAs fell 12 bps to 1.74% y-o-y, however, it showed a sequential rise of 16 bps.
“Our slippages have marginally come down and we have also improved our recovery position. Last year we were able to recover Rs 800 to Rs 900 crore but this time we have recovered Rs 1,900 crore. As a result of the stress in the system slippages are happening, and it will continue in the next two quarters,” said Srinivas. Provisions against NPAs stood at Rs 584.25 crore and the provision coverage ratio was at 65.39%.
Total advances in the September quarter grew 13.5% y-o y to Rs 3,85,766 crore, while retail credit increased 15.8% y-o-y to Rs 47,379 crore.