Bank of Baroda (BoB) reported a 24 per cent year-on-year (YoY) increase in second quarter standalone net profit to ₹2,088 crore from ₹1,679 crore in the year-ago quarter on robust growth in non-interest income.
Net interest income (difference between interest earned and interest expended) edged up 2 per cent YoY to ₹7,566 crore (₹7,410 crore in the year ago quarter).
Non-interest income, including commission-exchange-brokerage, forex income, trading gains, and recovery from technically written-off accounts rose 23 per cent YoY to ₹3,579 crore (₹2,910 crore).
NPAs improve
For the reporting quarter, the public sector bank made provisions of ₹2,600 crore towards non-performing assets (NPAs) and bad debts written-off, up 14 per cent YoY from ₹2,277 crore in the year ago period.
Fresh slippages were a tad higher at ₹5,223 crore (₹5,129 crore). Reduction in NPAs via recovery, upgrdation and write-offs was at ₹9,327 crore (₹9,836 crore).
Gross NPA position improved to 8.11 per cent of gross advances as at September-end 2021 against 8.86 per cent in the preceding quarter. Net NPA position too improved to 2.83 per cent of net advances from 3.03 per cent.
Domestic gross advances grew 2.99 per cent YoY to ₹6,23,368 crore. This came mainly on the back of growth in retail (auto, personal, gold, education and home loans), agriculture and MSME advances. Overseas gross advances declined 2.68 per cent YoY to ₹1,10,665 crore.
Domestic deposits increased by 3.43 per cent YoY to ₹8,64,603 crore. Overseas deposits declined 19.90 per cent YoY to ₹94,881 crore
BoB’s second quarter consolidated net profit increased by about 22 per cent YoY to ₹2,168 crore (₹1,771 crore).