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Bank of Baroda reported a four-fold jump in third quarter net profit at ₹471 crore against ₹112 crore in the year-ago period, on the back of healthy growth in net interest income and lower overall provisioning burden.
Net interest income (difference between interest earned and interest expended) rose 17 per cent to ₹4,744 crore in the reporting quarter ended December 31, 2018, against ₹4,068 crore in the year-ago period.
Total provisions were 13 per cent lower at ₹3,067 crore (₹3,538 crore). However, within this, loan loss provisions were up 8 per cent at ₹3,416 crore (₹3,155 crore).
Non-interest income was down 3 per cent at ₹1,621 crore (₹1,673 crore), mainly due to 25 per cent decline in treasury income. Operating profit declined 3 per cent to ₹3,539 crore (₹3,650 crore).
GNPAs reduced to 11.01 per cent of gross advances as on December 31, 2018, against 11.78 per cent in the preceding quarter. Net NPA ratio declined to 4.26 per cent of net advances from 4.86 per cent in the preceding quarter.
During the reporting quarter, fresh slippages were at ₹2,933 crore. This includes an amount of ₹1,169 crore slippage from the IL&FS Group. In the preceding quarter, fresh slippages were at ₹2,281 crore.
In absolute terms, GNPAs declined by ₹1,937 crore during the reporting quarter to ₹53,184 crore.
Net interest margin improved to 2.69 per cent in the reporting quarter from 2.61 per cent in the preceding quarter. NIM of international operations improved to 1.99 per cent from 1.66 per cent.
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