Bank of Baroda Q1 net at Rs 1139 crore, NPAs rise
The week ahead should see some event-based moves with all eyes on global central banks.
Bank of Baroda said quarterly net profit rose over 10 per cent at Rs 1,139 crore on the back of strong fee income. A decline in restructured loans sent share prices to the day high Monday.
The PSU lender had reported Rs 1,033 crore in net profit in the same quarter last fiscal. Analysts had expected the bank to report Rs 1,138 crore net in the June quarter. Net interest income grew to Rs 2,798 crore, a rise of 22 per cent over Rs 2,297 crore last year. The bank also reported a 20 per cent growth in fee-based income.
Headline asset quality saw further deterioration, but slippages, including restructured loans were not as bad as other PSU lenders.
"The amount of advances that were restructured has come down to Rs 771 crore. The bank has been able to arrest this trend," MD Mallya, chairman & MD of Bank Of Baroda said.
State-run lenders, including Punjab National Bank, the second-biggest in the public sector, and smaller Central Bank of India reported a rash of bad loans, sending their shares sharply lower. Government-owned banks account for 70 per cent of the market in India but their lending decisions are not always driven by commercial considerations.
Gross non-performing assets jumped 55 per cent year-on-year at Rs 5,319 crore while net NPAs grew over 80 per cent at Rs 1,845 crore. However, the growth was 19 per cent when compared to the March quarter.
The bank set aside Rs 894 crore towards provisions, up 128 per cent year-on-year and just 5 per cent sequentially.
Advances grew 23 per cent over last year, while deposits jumped 22 per cent against the same quarter last year.
Shares in the company traded with over 4 per cent gains at Rs 676.60 on the BSE, outperforming the broader banking index on the BSE, which traded 2.35 per cent higher at 12.25 p.m.