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Our Bureau

Dr A. K. Khandelwal

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Mumbai Jan 24 Spurred by higher net interest income, Bank of Baroda has registered 62.8 per cent growth in Q3 net profit at Rs 329.13 crore, against Rs 202.18 crore in the corresponding period of the previous year.

"Despite the pressure on margins, we have been able to improve the net interest margin to 3.21 per cent at the end of Q3, against 3.18 per cent in Q2. The emphasis has been on growth with profitability," said Dr Anil K. Khandelwal, Chairman and Managing Director, Bank of Baroda.

Net interest income rose by 18.1 per cent to Rs 960.77 crore, against Rs 813.36 crore in the previous year.

Total income was up 32.9 per cent at Rs 2,720.7 crore (Rs 2,047 crore) while total expenditure was higher by 34.15 per cent at Rs 2,063.8 crore (Rs 1,538.42 crore).

In the first nine months of the fiscal, the cost of domestic deposits has risen to 4.74 per cent against 4.29 per cent in the previous year.

Deposits have grown by 23.5 per cent to Rs 90,421 crore. The yield on advances has inched up to 8.61 per cent (7.15 per cent).

Domestic advances have grown by 41.4 per cent to Rs 62,146.5 crore. Retail credit was up 49.2 per cent at Rs 12,240.9 crore.

The scrip ended on Wednesday at Rs 246.05 on the BSE, up from the previous close at Rs 235.25.

The proportion of Current Accounts and Savings Accounts was slightly lower at 40.44 per cent against 42 per cent in the previous year.

Mr Khandelwal said credit growth would be sustained at 25-30 per cent in this fiscal based on a 25 per cent rise in deposits.

Bond issue

The bank plans to raise $1.5 billion through a Medium Term Note programme with various Tier II issuances. The lead banks for the programme are Deutsche Bank, Barclays and Citibank.

The capital adequacy ratio stands at 12.24 per cent, slightly lower than 12.81 per cent in the previous year.

Mr Khandelwal said the bank would focus on its overseas operations, which currently contribute 18 per cent of the total business and 35 per cent of the net profit.

This year, the bank plans to expand in Canada, Australia, UK, and Trinidad and Tobago and set up a joint venture subsidiary in Malaysia. It is also planning to upgrade its representative office in Guangzhou into a branch and open a second representative office in Hangzhou in China.

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