Bank of Baroda (BoB) has reported a 28% increase in net profit for the second quarter ended September, reaching Rs 4,253 crore. This growth can be attributed to a decrease in bad loans and an increase in interest income. In the corresponding quarter of the previous fiscal year, the state-owned lender had achieved a net profit of Rs 3,313 crore.
According to a regulatory filing by BoB, total income for the second quarter of the fiscal year 2023-24 rose to Rs 32,033 crore, compared to Rs 23,080 crore in the same period last year.
During the quarter, interest income surged to Rs 27,862 crore, a significant increase from Rs 21,254 crore in the corresponding quarter of the previous year. BoB’s efforts to improve its asset quality were evident as gross non-performing assets (NPAs) decreased to 3.32% of the gross advances by the end of September 2023, down from 5.31% in the previous year.
Additionally, net NPAs fell to 0.76% from 1.16% in the same quarter of the previous year. Provisions for bad loans and contingencies witnessed an increase to Rs 2,161 crore from Rs 1,627 crore in the previous year.
BoB also saw improvement in its net interest margins, which rose to 3.33% at the end of September 2022. Furthermore, the capital adequacy ratio improved slightly from 15.25% to 15.30% at the end of September 2022.
These robust financial results reflect Bank of Baroda’s proficiency in managing its loan portfolio and generating interest income. With a decline in bad loans and steady growth in net profit, BoB is expected to continue its successful performance in the banking sector.
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