Bank of Baroda net profit jumps to Rs 737 cr on higher NII

Mumbai: State-run Bank of Baroda on Friday reported a massive jump of 394.63 per cent net profit at Rs 737 crore in the quarter ended September due to higher net interest income. The bank had reported a profit after tax of Rs 149 crore in the same period last year on a standalone basis. BOB amalgamated Dena Bank and Vijaya Bank with it from April 1, 2019.

"We have shed our high cost deposits. Our net interest income has grown 10 per cent leading to higher profit," the bank's executive director Murali Ramaswami said.

Net interest income (NII) grew at 10.1 per cent to Rs 7,028 crore. Net interest margin improved by 19 basis points to 2.81 per cent in Q2 FY20. Gross NPA ratio were at 10.25 per cent and net NPA was 3.91 per cent. Provision for NPAs was at Rs 3,425 crore for the quarter. Fresh slippage for the quarter was Rs 6,001 crore.

"There were two NBFCs, of which one was housing finance company, one textile company and one plastic company that slipped into NPA in the quarter," he said.

The bank's has an exposure of Rs 2,000 crore to troubled mortgage player DHFL. The account is still a standard in the bank's book. Domestic deposits stood at Rs 7,83,492 crore as on September 30, 2019 up by 4 per cent and advances grew by 2 per cent to Rs 5,33,174 crore. The bank's scrip closed at 2.39 per cent down at Rs 93.80 on BSE on Friday.