BoB net up 60% to Rs 634 cr

Written by fe Bureaus | Mumbai | Updated: Oct 29 2009, 09:18am hrs
Riding on substantial growth in net interest, non-interest income and treasury gains, state-owned lender Bank of Baroda has reported a 60% jump in its net profit to Rs 634.18 crore for the second quarter ended September 30, 2009, over the year-ago period. The bank had posted a net profit of Rs 395.29 crore in the second quarter last fiscal.

Total income of the bank increased by 17.5% to Rs 4,731 crore, while net non-performing assets dipped to 0.27% during the period, as against 0.43% during the same period a year ago. Capital adequacy ratio and return on average assets of the bank stood at 14.67% and 1.07%, respectively.

However, net interest margin (NIM) on domestic assets was marginally down by 2.89% as against 2.92 % witnessed in the corresponding period of the 2008-09 fiscal.

We will try to maintain our NIM at its current level by the fiscal-end. It will be done by keeping our cost of deposits low, said MD Mallya, chairman & managing director, BoB.

The bank has targeted to contain the loan delinquencies below 1% for the fiscal, Mallya said, adding that his banks loan loss coverage ratio was currently at 79.29%, much above the RBIs revised guidelines of 70%.

The bank is expecting to achieve the credit growth of 20-21% by the end of the fiscal. On a year-on-year basis, total (global) business of the bank increased 27.3% to Rs 3,56,274 crore in the first half of the current financial year while global deposits went up by 28.7%.

Net interest income of the bank grew 22.5% and the banks tax provision also increased 34.9% during the period. Similarly banks, net interest income (NII) grew by 18.40% during the reporting period.

The treasury profit rose by 39% to Rs 205 crore as against the mark of Rs 147 crore recorded by the bank during the corresponding period a year ago. Total loans worth Rs 300 crore were restructured by the bank during the period. The banks stock prices opened at Rs 486.75 on Wednesday and rose 2.14% to close at Rs 497.15.