BoB net soars 2-fold as bad loan provisions fall

Public sector lender Bank of Baroda on Friday reported a more than twofold jump in net profit at Rs 528.26 crore for the first quarter of 2018-19 as provisions for bad loans dropped.

The bank had reported a net profit of Rs 203.39 crore in the same quarter of 2017-18.

The bank had reported a huge net loss of Rs 3,102.34 crore in the previous January-March quarter.

Total income for the April-June period of 2018-19 edged up to Rs 12,787.71 crore from Rs 12,103.86 crore in the same period of preceding fiscal, the bank said.

The net interest income (NII) increased by 28.66 per cent year on year and 9.47 per cent quarter on quarter. Operating income (NII and other income) increased by 11.56 per cent from a year ago.

Net Interest Margin (NIM) improved to 2.65 per cent in June 2018 quarter from 2.51 per cent during previous quarter, the bank said. Core fee income increased by 16.76 per cent to Rs 794 crore. Bank's provisions for bad loans were brought down to Rs 1,759.72 crore for the first quarter of current fiscal from Rs 2,156.69 crore for the same period of 2017-18. Gross NPAs in value terms dropped to Rs 55,874.81 crore at Juneend this year from Rs 56,480.39 crore at end-March, but were up compared to Rs 46,172.77 crore at the end of June 2017.

Overall provisions and contingencies also came down to Rs 2,165.64 crore from Rs 2,368.05 crore.