Bank of Baroda, on February 5, reported an increase in 107 percent net profit for the December quarter in the back of higher net interest income and lower provisions. Net income for the quarter reached Rs 2,197.03 Crore against RS 1,061.11 Crore a year ago Net interest income (NII) – The difference between the interest obtained and interest was issued – increased by 14.38 percent year-on-year (yoy) to RS 8,552.03 Crore. Clean Flower Margin (NIM) – The main measure of profitability – reached 3.13 percent, an increase of 36 basis points (BPS) YoY Provisions and contingencies fell 27.33 percent from last year to Rs 2,507.04 Crore Other income, which includes costs, trade profits and other income, slipped 13.45 percent yoy to Rs 2,519.26 Crore in three months to December.
Gross non-performance assets (NPA) decreased to Rs 55,997 Crore in the quarter of Rs 63,182 Crore in 2021. The ratio of dirty -bad NPAS as a percentage of gross progress – was at 7.25 percent in Q3 FY22, down 86 bps and 123 bps Yoy. Post-provisions, the NBA Net ratio was at 2.25 percent in Q3, against 2.83 percent in the September quarter of FY22 and 2.39 percent in the second quarter Progress grew 4.75 percent yoy RS7.32 trillion as of December 31 where the retail loan portfolio increased 11.13 percent to Rs 1.28 trillion. The bank’s corporate loan book was flat from a year ago to Rs 2.91 trillion. Home loans and car loans each grew 6.57 percent and 20.54 percent respectively. Small business loans rose slightly 2.39 percent while gold loans increased 28 percent.
The results in progress increased sequentially to 6.92 percent in the quarter of 6.5 percent. Deposit grew 2.45 percent yoy to RS9.78 trillion The bank fresh slippages in the third quarter reached Rs 2830 Crore compared to Rs 5,223 Crore during Q2 and RS 3986 Crore at Q3FY21. Recovery and an increase from the NPA during the quarter was Rs 2032 Crore and Rs 1272 Crore against Rs 1966 Crore and RS 2106 Crore, in sequence.
