Public sector lender Bank of Baroda’s third-quarter net profit declined 55 per cent over the previous year quarter but asset quality improved. The bank’s net profit fell to Rs 1.12 billion in the quarter ended December, compared with Rs 253 billion in the year-ago quarter. Net interest income for the December-quarter rose 40.2 per cent to Rs 43 billion over Rs 31 billion in year-ago quarter. The net interest margin, the difference between the yield on advances and cost of fund, improved sequentially to 2.72 per cent. The capital adequacy ratio (CRAR) for the quarter was 11.55 per cent as against 12.55 per cent in the previous quarter. Provisions for bad loans rose about 93 per cent to Rs 31.55 billion. The gross non-performing assets (NPAs), as a percentage of total advances, in the present quarter, fell to 11.31 per cent, against 11.4 per cent from the year-ago quarter. However, asset quality worsened sequentially at 11.16 per cent. Provisions and contingencies were Rs 342 billion as compared to Rs 208 billion in the same quarter last year.
This was a rise from Rs 233 crore in the previous quarter.