After posting a huge loss of ₹3,102 crore in the preceding quarter, Bank of Baroda reported a turnaround performance, recording a standalone net profit of ₹528 crore in the first quarter of FY2019 on the back of robust growth in retail and corporate advances. The bank claimed that non-performing asset (NPA) levels are stabilising.

The public sector bank’s net profit in the reporting quarter was up 160 per cent over the year-ago quarter.

Net interest income (difference between interest earned and interest expended) jumped 29 per cent year-on-year (y-o-y) to ₹4,381 crore (₹3,405 crore).

However, other income was down 26 per cent y-o-y to ₹1,148 crore against ₹1,551 crore in the year-ago quarter.

Net interest margin (NII/ interest earning assets), a key profitability measure, improved to 2.65 per cent as of June-end 2018 against 2.12 per cent as of June-end 2017. Global deposits, including domestic and global deposits, nudged up about 2 per cent y-o-y to ₹5,81,484 crore as of June-end 2018. Of this, domestic deposits saw a 6 per cent y-o-y growth to ₹4,61,509 crore.

Low-cost current account, savings account (domestic) improved to 40.82 per cent of domestic deposits in June 2018, from 38.77 per cent in June 2017.

Advances were up about 10 per cent y-o-y to ₹4,14,517 crore as of June-end 2018. Of this, domestic advances grew by a healthy 20 per cent y-o-y to ₹3,26,400 crore.

NPA additions, including fresh slippages during the quarter, were lower at ₹4,733 crore against ₹5,200 crore in the year-ago quarter.

During the reporting quarter, there was higher reduction in NPAs amounting to ₹5,339 crore (₹1,746 crore in the year-ago quarter) due to recovery, write-offs and upgradation.

Gross NPAs as of June-end 2018 increased to ₹55,875 crore against ₹46,173 crore as of June-end 2017.

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