Bank of Baroda Q2 net doubles to ₹1,679 crore

The logo of Bank of Baroda is pictured outside its branch in Mumbai.   | Photo Credit: Reuters

Bank of Baroda (BoB) said second-quarter net profit increased 128% to ₹1,679 crore on a standalone basis compared with ₹737 crore in the year-earlier period on the back of lower provisions.

Consolidated net profit stood at ₹1,771 crore. Operating profit at ₹5,552 crore represented an increase of 4% YoY while net interest income rose 6.8% YoY to ₹7,508 crore.

Global advances increased by 5.3% led by domestic organic retail and agriculture loans which grew by 16.81% and 16.52% respectively. Auto loans increased by 34.8% YoY, the bank said in a statement.

Retail sanctions and disbursements in Q2FY21 were at 119% of last year’s level. During the period the bank’s fee income increased by 3.9% and trading gains at ₹1,006 crore were up by 6.8% YoY. Domestic CASA ratio increased to 39.78%, up by 190 bps YoY, it said.Gross NPA ratio stood at 9.14% (10.25%) and net NPA ratio at 2.51% (3.91%).

The bank’s Covid-19 related provision stood at Rs 1,748 crore.

“Capital adequacy (CRAR) stands at 13.26% with CET-1 at 9.21% on a standalone basis and for the consolidated entity it stands at 14% and 10.05% respectively,” the bank said.

Since the Supreme Court has directed that accounts which were not declared as NPA till August 31, 2020 shall not be declared as NPA till further orders,

The Bank as a matter of prudence has made a contingent provision of ₹195.20 crore in respect of such accounts that were not classified as NPA.

Further, in respect of above accounts, interest income aggregating ₹97.92 crore has been reckoned in operating profit and as prudent measure an equal amount has been made as additional provision against those Assets.

Total additional provision as on September 30 is ₹293.13 crore

If the bank would have classified the said borrower accounts as NPA, the gross and net NPA ratio would have been 9.33% and 2.67% respectively, it said.

This article is closed for comments.
Please Email the Editor

Printable version | Dec 4, 2020 5:04:51 PM |

Next Story