Business News
BoB profit falls 56% to Rs 111.8 crore amid rising provision for NPAs
The net interest margin improved by 41 bps sequentially to 2.72 per cent with domestic operations NIM rising by 56 bps to 3.24 per cent quarter on quarter.
State-run lender Bank of Baroda (BOB) on Friday reported 56 per cent fall in net profit at Rs 111.8 crore, in third quarter of this fiscal as against Rs 253 crore in the corresponding quarter a year ago.
BOB’s provisions for NPAs stood at Rs 3,155 crore for the third quarter of the current fiscal compared to Rs 1,638 crore in the same quarter a year ago. Net interest income for the December-quarter rose 40.2 per cent to Rs 4,394 crore from a year ago.
The bank said the net interest margin improved by 41 bps sequentially to 2.72 per cent with domestic operations NIM rising by 56 bps to 3.24 per cent quarter on quarter. The capital adequacy ratio (CRAR) for the quarter was 11.55 per cent as against 12.55 per cent in the previous quarter.
The bank’s gross non-performing assets (NPAs) for the quarter were higher at 11.31 per cent compared to 11.16 per cent in previous quarter while net NPAs were lower at 4.97 per cent against 5.05 per cent on sequential basis.
In absolute terms, gross NPAs increased 4.7 per cent to Rs 48,480.4 crore and net NPAs rose 1.4 per cent to Rs 19,852.15 crore compared to previous quarter.
Provisions for bad loans shot up 70.8 per cent sequentially and 92.7 per cent year-on-year to Rs 3,155.28 crore for quarter ended December 2017. Other income (non-interest income) during the quarter declined 5.7 per cent to Rs 1,673 crore while operating profit grew by 40.6 per cent to Rs 3,650.11 crore compared to previous year, driven by interest and fee income.
