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Bank of Baroda has reported worse-than-expected profit number in the second quarter of this fiscal. Net profit dropped 36 per cent to ₹355 crore, from ₹552 crore in the corresponding quarter of the previous year.
Street expectations were that the profit would drop by about 17 per cent while the actual fall was more than double that amount. Net interest income was up 8.58 per cent to ₹3,720 crore for the quarter, while other income rose 11 per cent to ₹1,737 crore.
Loan growth was at 14 per cent with domestic advances moving up to ₹2.80 lakh crore. Retail loans grew at 25 per cent and within that, housing loans rose 34 per cent, the bank said.
Net interest margin improved to 2.31 per cent, from 2.12 per cent in the previous quarter.
Gross non-performing assets improved slightly to 11.16 per cent in the second quarter, from the 11.4 per cent in the first. Total gross NPAs stood at ₹46,307 crore against ₹46,172 crore in Q1. Net NPAs came in at 5.05 per cent or ₹19,573 crore.
Provisions for NPAs were higher at ₹1,847 crore (₹1,630 crore in Q2 of the previous year). But they were significantly lower than the ₹2,157 crore in the first quarter.
The bank’s scrip rose ₹2.50 on Tuesday to touch ₹174.40 at close on the BSE.
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