Bank of Baroda posted a 10 per cent growth in net profit at Rs 1,139 crore (Rs 1,033 crore) in the June quarter, even as the bank doubled provisions to cover bad loans.
The provisions against non-performing assets rose 129 per cent to Rs 894 crore as compared with Rs 391 crore in first quarter of FY12. The bank’s provision-coverage ratio stood at 79.02 per cent during the quarter.
Net interest income (difference between interest earned and interest expended) increased by about 22 per cent to Rs 2,798 crore from Rs 2,297 crore during the same period last year.
“Net interest margin during the quarter declined to 2.73 per cent from 2.87 per cent in Q1 FY12 on higher cost of deposits, and lower yield on advances,” said Mr M. D. Mallya, Chairman and Managing Director.
Total restructured assets during the quarter stood at about Rs 771 crore (9 per cent slipped into NPAs) as against Rs 5,281 crore in Q4 FY12. Net NPAs increased to 0.65 per cent from 0.44 per cent on y-o-y basis.
The public sector bank’s profit growth in this quarter was in sync with its peer banks. For instance, Canara Bank’s profits grew 7 per cent (Rs 775 crore), Punjab National Bank 13 per cent (Rs 1,246 crore), and Union Bank of India’s profit grew 10 per cent (Rs 512 crore). Bank of India, however, stood apart posting a 71 per cent increase in its net profit (Rs 517.5 crore) on the back of lower provisioning in Q1 FY13.
The Bank of Baroda share closed at Rs 672.60 on the BSE, 3.54 per cent higher than its previous close.