BoB Q4 net falls 32% to Rs 1,029 cr as provisions double
Mumbai: Bank of Baroda (BoB) on Monday reported 32 percent fall in net profit to Rs 1,029 crore in the January-March quarter due to higher provisions for bad debts.
The bank saw its asset quality worsening year-on-year but improving sequentially.
While gross NPAs rose to 2.40 percent from 1.53 percent a year earlier, net NPAs more than doubled to 1.28 percent from 0.54 percent a year ago. However, it was better than the gross and net NPAs in the third quarter when it stood 2.41 percent and 1.12 percent respectively.
Accordingly, provisions nearly doubled to Rs 1,598.40 cr in the quarter from Rs 843.68 crore a year ago.
Chairman and managing director of the bank, S S Mundra, was optimistic about the asset quality improving going ahead.
He said, "though I can't give any specific guidance for gross and net NPAs for this fiscal, things will improve in the asset quality front in the current fiscal as asset quality has shown stabilisation sequentially."
For the full fiscal also, its net profit came down by 10.5 percent to Rs 4,481 crore, from Rs 5,007 crore in FY12.
Total income of the bank for the quarter rose 13.8 percent to Rs 10,262.50 crore compared to Rs 9,016.31 crore reported a year ago.
"Our asset quality has stabilised sequentially and going ahead, we hope this will improve. With this, we will again refocus on growth in the current financial year," Mundra told reporters here.
While net interest income (NII) of the public sector lender rose marginally by 0.6 percent to Rs 2,813.99 crore, net interest margin (NIM) came down to 2.51 percent in quarter from 2.96 percent a year earlier.
For the whole fiscal, consolidated NIM (domestic and global operations) stood at 2.66 percent, with domestic NIM being 3.11 percent.
"We hope to maintain a domestic NIM above 3 percent in this fiscal," Mundra said.
Bank's total provisions jumped to Rs 1,598.40 crore in the fourth quarter from Rs 843.68 crore reported in the same period previous fiscal.
On the restructuring front, the bank said that total restructuring was for Rs 22,600 crore as of end of 2013.
On the deposit and credit fronts, the bank said its total advances grew by 14.2 percent to Rs 3.28 lakh crore, total deposits were up by 23 percent to Rs 4.73 lakh crore by the end of last financial year.
"We hope to grow 2-4 percent more than the industry average in deposit and credit front in the current fiscal," Mundra said.
As per RBI estimates, the average growth of the banking industry is likely to be 14 percent in deposits and 15 percent in advances in the current fiscal.
"Our focus will be on increasing the Casa (current account, savings account) base with realignment of advances to various sectors in the current fiscal," Mundra said.
As per the bank, it will increase its focus on SME, retail and agriculture segment in the current financial year to achieve the realignment in its loan book.
The bank had a capital adequacy ratio of 13.3 percent with a tier-I capital of 10.13 percent by the end of March quarter.