New Delhi, Nov 14 (PTI) Public sector lender Bank ofBaroda (BOB) today reported a 36 per cent fall in net profitat Rs 355 crore for the quarter ending September due to higherprovisioning for bad assets.
Total income of the bank rose by a modest 3.68 per centto Rs 12,490 crore during the July-September quarter of 2017-18, compared to Rs 12,047 crore in the second quarter of2016-17, the bank said in a regulatory filing statement.
The gross non-performing assets (NPAs) of the bankdeclined slightly to 11.16 per cent of the gross loans by theend of second quarter, from 11.35 per cent in the same periodof last year and also from 11.40 per cent in the April-Junequarter of current financial year.
Net NPAs too fell to 5.05 per cent of the net advances bySeptember 30, 2017 from 5.46 per cent as at end-September2016.
In absolute value, gross NPAs were Rs 46,306.83 croreduring the quarter against Rs 42,949.25 crore. And net NPAs orbad loans stood at Rs 19,572.62 crore, as compared to Rs19,341.95 crore.
The provisioning for bad loans rose to Rs 1,847.22 crorein the quarter against Rs 1,630.45 crore.
Bank of Baroda said it made provision of 20 per cent onsecured sub-standard advances which is higher than theregulatory requirement of 15 per cent.
Also, the bank said it made an additional provision of Rs22.06 crore in respect of standard advances to stressedsectors of the economy.
"Due to change in appropriation of recovery in NPAaccounts, additional income of Rs 93 crore has been recognisedduring the quarter ended September," it added.
"In compliance with RBI ... during the quarter endedSeptember, 2017, the bank had made a provision of Rs 162.94crore under Insolvency and Bankruptcy Code (IBC). Remaining Rs325.89 crore will be provided in next two quarters aspermitted under RBI directions," the bank said.
Net interest income--the difference between interestearned and expended--was up by 8.58 per cent from a year agoto Rs 3,720 crore. Income from other sources were up 11.20 percent to Rs 1,737 crore.
The total business of the bank stood at Rs 9.71 lakhcrore as on September 30, 2017 as against Rs 9.22 lakh crorein the year ago period, up 5.30 per cent.
The deposits stood at Rs 5.83 lakh crore by end of secondquarter, 2017-18 against Rs 5.67 crore.
Bank of Baroda shares closed 1.51 per cent higher at Rs174.40 on BSE. PTI KPMMR.
This is unedited, unformatted feed from the Press Trust of India wire.