Bank of Baroda Q3 profit sinks 56% as provisions for bad loans nearly double

The bank’s net profit fell to Rs 112 crore in the quarter ended December, compared with Rs 25,300 crore in the year-ago quarter.

Bank of Baroda Q3 profit sinks 56% as provisions for bad loans nearly double
Photo: Reuters

State-run Bank of Baroda’s third-quarter net profit declined 56 percent over the previous year quarter but asset quality improved.

The bank’s net profit fell to Rs 112 crore in the quarter ended December, compared with Rs 25,300 crore in the year-ago quarter.

Net interest income for the December-quarter rose 40.2 percent to Rs 4,300 crore over Rs 3,100 crore the in year-ago quarter.

Though, the net interest margin, the difference between the yield on advances and cost of fund, improved sequentially to 2.72 percent.

The capital adequacy ratio (CRAR) for the quarter was 11.55 percent as against 12.55 percent in the previous quarter. Provisions for bad loans rose about 93 percent to Rs 3,155 crore.

The gross non-performing assets (NPAs), as a percentage of total advances, in the present quarter, fell to 11.31 percent, against 11.4 percent from the year-ago quarter.

However, asset quality worsened sequentially at 11.16 percent.

Provisions and contingencies were Rs 34,200 crore as compared to Rs 20,800 crore in the same quarter last year.

This was a rise from Rs 233 crore in the previous quarter.

 

(With agency inputs)

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