State-owned Bank of Baroda (BoB) posted a 79% rise in net profit of ₹2,168 crore for the first quarter ended June, aided by a decline in bad loans.
Total income increased to ₹20,119.52 crore compared with ₹19,915.83 crore, according to a regulatory filing.
The lender’s interest income expanded to ₹18,937.49 crore from ₹17,052.64 crore a year earlier.
Non-interest income improved by 12% to ₹8,838 crore, boosted by fee income that climbed 15%.
However, operating profit for the quarter declined by 19% to ₹4,528 crore from ₹5,707 crore.
On the asset quality front, the lender’s gross non-performing assets (NPAs) improved in the June quarter to 6.26% from 8.86%.
In absolute terms, the gross NPAs or bad loans declined to ₹52,590.83 crore from ₹63,028.78 crore a year earlier.
The net NPA too declined to 1.58% against 3.03%.
As a result, provisions other than tax and contingencies for bad loans declined to ₹1,684.80 crore against ₹4,005.40 crore.
As of June this year, the Provisioning Coverage Ratio stood at 89.38% while the net interest margin was stable at 3.02%.
Domestic advances of the bank increased to ₹6,95,493 crore, registering a growth of 15.7%.
The capital adequacy ratio (CAR) at the end of the quarter stood at 15.46% with CET-1 at 12.97% on a standalone basis.
The organic retail loan portfolio of the bank grew 23.2% led by 14.7% growth in personal loans, auto loans (25.6%), education loans (20.5%), while home loans by 15.3 per cent on an annual basis, it said.
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