Bank of Baroda net drops 36%, NPAs down

Financial Chronicle - - COMPANIES -

Bank of Baroda (BoB) on Tue­sa­day re­ported a 36 per cent fall in net profit at Rs 355 crore for the quar­ter end­ing Septem­ber due to higher pro­vi­sion­ing for bad as­sets.

To­tal in­come of the bank rose by a mod­est 3.68 per cent to Rs 12,490 crore dur­ing the July-Septem­ber quar­ter of 2017 -18, com­pared to Rs 12,047 crore in the sec­ond quar­ter of 201617, the bank said in a reg­u­la­tory fil­ing.

Gross non-per­form­ing as­sets (NPAs) de­clined slightly to 11.16 per cent of the gross loans from 11.35 per cent a year ago and also from 11.40 per cent in the April-June quar­ter.

Net NPAs too fell to 5.05 per cent of net ad­vances from 5.46 per cent a year ago.

In ab­so­lute value, gross NPAs were Rs 46,306.83 crore dur­ing the quar­ter against Rs 42,949.25 crore. And net NPAs or bad loans stood at Rs 19,572.62 crore, as com­pared to Rs 19,341.95 crore.

The pro­vi­sion­ing for bad loans rose to Rs 1,847.22 crore in the quar­ter against Rs 1,630.45 crore.

Bank of Baroda said it made pro­vi­sion of 20 per cent on se­cured sub­stan­dard ad­vances which is higher than the reg­u­la­tory re­quire­ment of 15 per cent.

Also, the bank said it made an ad­di­tional pro­vi­sion of Rs 22.06 crore in re­spect of stan­dard ad­vances to stressed sec­tors of the econ­omy.

"Due to change in ap­pro­pri­a­tion of re­cov­ery in NPA ac­counts, ad­di­tional in­come of Rs 93 crore has been recog­nised dur­ing the quar­ter ended Septem­ber," it said.

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