Improvement in asset quality and steady loan growth helped Bank of Baroda post a 23% rise in net profit for the quarter ended September to Rs 5,238 crore.
The gross non-performing assets ratio fell to 2.5% at the end of September from 2.88% a quarter ago and 3.32% a year ago. The Net NPA also improved to 0.60% from 0.69% a quarter ago and 0.76% a year ago, according to an exchange filing on Friday.
The net interest income was up 7.3% to Rs 11,622 crore. However, the net interest margin continued a downward trajectory to 3.27% from 3.30% a quarter ago but was up from 3.19% a year ago.
Domestic gross advances grew 13% annually and 6.5% sequentially to Rs 9.38 lakh crore. Among this, retail continued to grow at the highest pace of 20% annually to Rs 2.32 lakh crore, followed by MSME rising at 12% to Rs 1.26 lakh crore. Corporate and agricultural loans both rose nearly 11% to Rs 3.88 lakh crore and Rs 1.44 lakh crore respectively.
Within retail loans, gold loans rose the most, over twofold to Rs 6,659 crore. Personal loans were up 25% to Rs 32,062 crore.
Deposits of the public sector bank rose 7.1% annually to Rs 11.5 lakh crore. At the end of September, the current account, savings account ratio was 39.84% against 39.88% a year ago.
During the quarter, the state-owned bank had loan additions of Rs 3,110 crore. Of this, it recorded fresh slippages of Rs 2,788 crore. The bank recovered Rs 960 crore worth of loans and had upgradations of Rs 877 crore.
Credit costs sharply rose to 0.65% at the end of September from 0.47% a quarter ago. It was 0.92% a year ago. Slippage ratio of the bank increased to 1.07% from 1.05% a quarter ago but was lower than 1.81% a year ago.
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