Bank of Baroda reports ₹1,061 cr profit in Q3

Bank of Baroda (BoB) reported a standalone net profit of ₹1,061 crore in the third quarter against a net loss of ₹1,407 crore in the year-ago quarter.

A 69 per cent decline in provision towards bad loans and diminution value of all restructured accounts and a 55 per cent increase in trading gains helped boost the bottomline.

Provision towards bad loans and diminution value of all restructured accounts was at ₹2,080 crore, and trading gains were at ₹925 crore.

However, the net profit in the reporting quarter was down 37 per cent compared with the preceding quarter’s ₹1679 crore.

Net interest income (the difference between interest earned and interest expended) was up 9 per cent year-on-year (YoY) to ₹7,749 crore (₹7,132 crore in the year-ago quarter).

Other income, comprising brokerage, commission, fees, income from foreign exchange fluctuation. Profit/ loss on the sale of investments, recovery from written-off accounts etc., increased 6 per cent YoY to ₹2,896 crore (₹2,738 crore).

Decline in NPAs

Gross non-performing assets (GNPAs) declined ₹2,516 crore during the reporting quarter.

GNPAs declined to 8.48 per cent of gross advances as at December-end 2020 against 9.14 per cent at September-end 2020.

Net NPAs declined to 2.39 per cent of net advances as at December-end 2020 against 2.51 per cent at September-end 2020.

With proforma slippages, Gross and Net NPA ratio would have been 9.63 per cent and 3.36 per cent, respectively.

Net interest margin improved to 3.07 per cent as at December-end 2020 against 2.96 per cent as at September-end 2020.

Global advances increased by 6.30 per cent YoY to ₹7,45,420 crore. Global deposits rose 6.52 per cent YoY to ₹9,54,561 core.