Bank of Baroda posts Q3 profit at Rs 253 cr, net NPA falls

The bank said domestic CASA grew by 43.19 percent year-on-year and 27.94 percent quarter-on-quarter driven by growth in both current accounts and savings bank deposit after demonetisation.

Operating profit increased 52.3 percent to Rs 2,595.2 crore in the quarter ended December 2016 compared with Rs 1,704.14 crore in year-ago quarter.

Earnings missed analysts' expectations but asset quality improved. Profit was expected at Rs 620 crore and net interest income at Rs 3,360 crore for the quarter, according to analysts polled by CNBC-TV18.

Gross non-performing assets as a percentage of gross advances increased 5 basis points to 11.40 percent but net NPAs declined 3 bps to 5.43 percent sequentially.

In absolute terms, gross NPAs fell 0.7 percent quarter-on-quarter to Rs 42,642.4 crore and net NPAs dropped 1.7 percent to Rs 19,006 crore in quarter ended December 2016.

"Total restructured standard assets of the bank were Rs 14,059 crore as on December 2016. The total stressed assets (gross NPA + restructured standard assets) were 15.16 percent of the gross advances," it said.

Provisions for non-performing assets during the quarter plunged 74.7 percent to Rs 1,637.82 crore year-on-year but sequentially increased 0.5 percent.

"Provision coverage ratio improved to 64.50 percent as at December 2016 from 62.95 percent as at September 2016 and 60.17 percent & 60.09 percent as at June 2016 and March 2016, respectively," the public sector lender said.