Bank of Baroda on Thursday reported a 5.6% year-on-year rise in its net profit to Rs 4,837 crore for the third quarter of the current financial year, supported by a strong growth in non-interest income and advances.
The public sector lender surpassed Street expectations as analysts polled by Bloomberg had estimated the bank to post a net profit of Rs 4,460 crore for the quarter.
Net interest income, the difference between interest earned and paid, rose 3% to Rs 11,417 crore during the quarter under review, compared with Rs 11,101 crore in the same period last year. Non-interest income surged 34% to Rs 3,769 crore. Net interest margins of the lender came at 2.94% as on December 31, 2024, from 3.10% as on September 30, 2024.
Domestic gross advances grew 12% to Rs 9.64 lakh crore while global advance rose 12% to Rs 11.73 lakh crore. Among this, retail rose 19.5% to Rs 2.42 lakh crore, followed by MSME, rising 13.6% to Rs 1.31 lakh crore.
Corporate loans rose nearly 7% to Rs 3.87 lakh crore and agriculture loans grew 12.5% to Rs 1.51 lakh crore.
Domestic deposits increased 9.2% to Rs 11.65 lakh crore while international deposits jumped 27% to Rs 2.26 lakh crore.
The asset quality improved, with gross non-performing assets (NPAs) declining to 2.43%, against 3.08% at the end of December 2023. The net NPA moderated to 0.59%, compared with 0.70% at the end of December 2023.
The provision coverage ratio, a measure of how much a bank has set aside for bad loans, remained robust at 93.51% with technical write-offs and 76.03% without them. The slippage ratio remained contained at 0.90% for the third quarter of current financial year, against 0.95% in the year-ago period.
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