Bank of Baroda Q1 net profit up 10%

Bank of Baroda reported 10.26% rise in net profit at Rs 11.39 cr for Q1.

Written by Agencies | Mumbai | Published: July 30, 2012 3:06:29 pm

Even though it witnessed a healthy jump in its core income,stress on assets led the third largest state-run lender Bank of Baroda to post only a 10.3 percent jump in June quarter net at Rs 1,138.86 crore today.

The city-based bank’s post-tax profit for the corresponding period last year stood at Rs 1,032.85 crore.

The provisions for the quarter soared by over 515 percent to Rs 812 crore.

The core net interest income grew 21.8 percent to Rs 2,798.07 crore year-on-year,driven by a healthy 23 percent credit growth,while the non-interest income was also up by 20.3 percent to Rs 770.80 crore,it said. It was not able to hold on margins,though as the domestic net interest margins declined to 3.22 percent compared to 3.39 a year ago and 3.44 percent in the March quarter.

The bank witnessed a fresh slippages of Rs 1,308 crore against Rs 585 crore y-o-y,which resulted in the provisioning for bad assets shooting up to Rs 812 crore against Rs 132 crore y-o-y,executive director R K Bakshi told reporters.

Total provisioning,excluding that for taxes,moved up to Rs 893.80 crore but it was not comparable to Rs 391.80 crore a year ago,when the bank gained Rs 600 crore through an income tax refund and write-back of depreciation.

For the reporting quarter,gross non-performing assets ratio moved up to 1.84 percent compared to 1.46 percent a year ago.

It restructured Rs 771 crore of assets during the quarter,as against the over Rs 5,200 crore in the March quarter.

Chairman and managing director M D Mallya said its performance on certain parameters reflects the overall stress in the economy and added that the bank will be cautious in future.

There are not much of shocks on asset quality in store,Mallya said.

He said the bank was able to recover Rs 238 crore and upgrade another Rs 135 crore,and added that BoB will be able to recover and upgrade Rs 500 crore in the second quarter.

Mallya said the bank will be targeting to maintain the NIMs at the current level and hopes to clock a credit growth of up to 2 percentage points higher than the system.

The share of the low-cost current and savings account deposits as on June 30 stood at 32.23 percent.

It was well-capitalised with the total capital adequacy of 13.74 percent with the core tier-I standing at 10.13 percent.

The bank scrip gained 3.89 percent to close at Rs 674.90 on the BSE today,whose 30-share Sensex gained 1.81 percent.

For all the latest News Archive News, download Indian Express App

Advertisement
Advertisement
Advertisement
Advertisement