Last Updated : Oct 29, 2020 04:11 PM IST | Source: Moneycontrol.com

Bank of Baroda Q2 profit more than doubles to Rs 1,679 crore as provisions drop

COVID-19 related provision stood at Rs 1,748 crore as of September 2020, the bank said.

 
 
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Public sector lender Bank of Baroda has more than doubled its September quarter profit following decline in provisions, though NII growth was in single digit.

Profit for the quater increased to Rs 1,678.6 crore, compared to Rs 736.7 crore in year-ago period.

Net interest income - the difference between interest earned and interest expended - rose 6.9 percent to Rs 7,507.5 crore in the quarter ended September 2020 YoY.

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"Global advances increased by 5.3 percent to Rs 7.18 lakh crore led by domestic organic retail and agriculture loans which grew by 16.81 percent and 16.52 percent respectively. Auto loans increased by 34.8 percent YoY," bank said, adding global deposits increased 6.73 percent YoY to Rs 9.54 lakh crore.

Numbers were ahead of CNBC-TV18 poll estimates which were pegged at Rs 209.2 crore for profit and Rs 6,828.5 crore for net interest income for the quarter.

Provisions and contingencies for the quarter at Rs 3,001.6 crore declined by 46.7 percent compared to previous quarter and fell 28.7 percent YoY, the bank said in its BSE filing.

COVID-19 related provision stood at Rs 1,748 crore as of September 2020, it added.

Provision coverage ratio increased to 85.35 percent as on September 2020 compared with 77.88 percent in year-ago period and 83.3 percent in June quarter.

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On the asset quality front, gross non-performing assets (NPA) as a percentage of gross advances at 9.14 percent dropped 25 bps sequentially, while net NPA declined 32 bps to 2.5 percent QoQ in the quarter ended September 2020, partly due to Superme Court order saying accounts which were not declared as NPA till August 2020 shall not be declared as NPA till further orders.

"Hence the bank has made additional provision as on September 2020 is Rs 293.12 crore. If the bank would have classified the said borrower accounts as NPA, the gross and net NPA ratio would have been 9.33 percent and 2.67 percent respectively," Bank of Baroda said.

Non-interest income in Q2FY21 was down 0.9 percent to Rs 2,802.3 crore compared to year-ago, while pre-provision operating profit rose 4 percent to Rs 5,551.82 crore YoY in Q2.
First Published on Oct 29, 2020 04:11 pm
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