Bank of Baroda (BoB) reported a profit of ₹507 crore for the January-March quarter on the back of healthy trading gains compared with the ₹991 crore loss in the year-earlier period.
The numbers are not exactly comparable as the lender merged with Vijaya Bank and Dena Bank in April 2019. Trading profit in the fourth quarter of FY20 was ₹875 crore (₹502 crore). Fresh slippages for the quarter stood at ₹3,050 crore. Bad loan provisions stood at ₹3,190 crore (₹5,550 crore).
Asset quality improved sequentially with gross NPAs declining to ₹69,381 crore as on March 31, 2020 (9.4% of gross advances) compared with the ₹73,140 crore (10.43%) as on December 31, 2019. Net NPA ratio was 3.13% as on March 31, 2020, down from the 4.05% as on December 31, 2019.
Provision coverage ratio improved significantly to 81.33% compared with 77.77% as on December 31, 2019. While the overall deposit growth was 1.8%, the growth is current and savings account (CASA) deposits was 6.75%. The ratio of CASA deposit to total deposit was at 39.07% at end March as compared to 37.26% year ago.
“The amalgamation was designed to ensure that the complementarity with the three banks are fully leveraged,” said Sanjiv Chadha, MD & CEO, BoB.
“The improvement in the CASA ratio is one of the biggest benefits which has come. Vijaya Bank was largely funded by wholesale deposits with CASA at 25%. For BoB, it was 39%. When we began the year for the combined entity, it was 37%. We have been able to improve it by 180 bps,” he said.
You have reached your limit for free articles this month.
Subscription Benefits Include
Today's Paper
Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list.
Unlimited Access
Enjoy reading as many articles as you wish without any limitations.
Personalised recommendations
A select list of articles that match your interests and tastes.
Faster pages
Move smoothly between articles as our pages load instantly.
Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.
Briefing
We brief you on the latest and most important developments, three times a day.
Not convinced? Know why you should pay for news.
*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.
A letter from the Editor
Dear subscriber,
Thank you!
Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.
The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.
We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.
Suresh Nambath
