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Last Updated : Nov 08, 2019 07:05 PM IST | Source: Moneycontrol.com

Bank of Baroda Q2 profit jumps 73% to Rs 736.7 cr despite spike in provisions; NPAs dip

Fresh slippages at the end of September quarter stood at Rs 6,001 crore, increased 7.5 percent from Rs 5,583 crore at the end of June quarter.

 
 
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Public sector lender Bank Of Baroda's July-September quarter profit jumped 73.2 percent year-on-year to Rs 736.7 crore despite sharp increase in provisions. The growth was driven by other income, net interest income (NII) and pre-provision operating profit (PPoP).

Profit in year-ago quarter stood at Rs 425.38 crore.

Net interest income in Q2FY20 grew by 56.4 percent year-on-year to Rs 7,028 crore, with credit and deposits growth of 47 percent each YoY.

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Results are not comparable year-on-year due to merger of Vijaya Bank and Dena Bank with BoB. Hence the sequential growth in profit was 3.8 percent and NII grew by 8 percent with 19bps expansion in net interest margin at 2.81 percent QoQ.

Numbers were ahead of a poll of analysts conducted by CNBC-TV18, which had expected the bank to report loss of Rs 333.5 crore and NII at Rs 6,567.6 crore for the quarter.

Asset quality of the bank improved in Q2FY20, with gross non-performing assets (NPA) as a percentage of gross advances falling 3bps sequentially to 10.25 percent and net NPA down 4bps QoQ to 3.91 percent in the quarter ended September 2019.

Fresh slippages at the end of September quarter stood at Rs 6,001 crore, increased 7.5 percent from Rs 5,583 crore at the end of June quarter.

Provisions and contingencies increased significantly to Rs 4,209.2 crore in the quarter ended September 2019, higher by 33 percent QoQ and 73 percent YoY, while provisions for NPAs climbed 8.1 percent sequentially to Rs 3,425 crore in Q2FY20.

Provision coverage ratio dropped considerably to 64.4 percent in September quarter, against 77.3 percent in June quarter.

Non-interest income grew by 109 percent year-on-year (up 47 percent QoQ) to Rs 2,824 crore while PPoP jumped 73 percent YoY (up 25 percent QoQ) to Rs 5,335.92 crore in the quarter ended September 2019.

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First Published on Nov 8, 2019 07:05 pm
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