Bank of Baroda Q3 net profit doubles to Rs 2,197 cr on lower provisions
Public sector lender Bank of Baroda’s net profit doubled to Rs 2,197 crore in the October-December quarter (Q3FY22), aided by higher net interest income and lower provisions.
Net interest income of the lender jumped 14.38 per cent to Rs 8,552 crore in the reporting quarter. Net interest margin, a measure of profitability, of the bank stood at 3.13 per cent, up 36 basis points from the year ago period.
Provisions fell over 27 per cent on a year-on-year (YoY) basis to Rs 2,506 crore. The bank is holding additional provision of Rs 558.93 crore over and above the provision as per IRAC norms in certain stressed standard advances on prudent basis.
Asset quality of the bank improved both sequentially and on a YoY basis, with gross non-performing assets (NPAs) at 7.25 per cent. Similarly, net NPAs improved to 2.25 per cent in Q3FY22.
Domestic advances rose 3.36 per cent on a YoY basis to Rs 6.54 trillion, of which retail loan portfolio rose by 11.13 per cent. Deposits, on the other hand, increased 5 per cent YoY to Rs 8.76 trillion, with domestic low cost deposits up by 12.86 per cent YoY.
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