MUMBAI: The second largest state-run lender Bank of Baroda has reported a tepid set of numbers for the June quarter with net income managing to inch up just about 1.8% on-year to Rs 4541.3 crore.
Interest income rose 4.9% to Rs 31,091 crore, while the key net interest income fell nearly 1.4% to Rs 11,435 crore from Rs 11,600 crore a year earlier. Non-interest income grew 88% to Rs 4,675 crore, still not large enough to make up for the weak incremental interest income.
The global net interest margin for the quarter came in at a low 2.91%, while the domestic net interest margin printed in again at a low 3.06%, the bank said Friday.
The bank’s gross non-performing assets came down to 2.28% from 2.88%, while net bad loans came in at 0.6% from 0.69%. In absolute terms, gross NPAs came down by 10.7% to Rs 27,572 crore.
The provision coverage ratio stood at 93.18% while the slippage ratio stands at 1.16 and credit cost at 0.55%.
BoB shares closed 1.36% lower at Rs 243.45 while the index fell almost 0.9%.
Domestic advances increased to Rs 9,91,363 crore, up 12.4%, and global advances rose to Rs 12,07,056 crore, or 12.6%, while domestic deposits increased 8.1% to Rs 12,04,283 crore and global deposits rose 9.1% to Rs 14,35,634 crore.
Organic retail advances grew by 17.5%, driven by strong growth across segments such as mortgages (18.6%), auto (17.9%), home loans (16.5%), education loans (15.4%) and personal loans (19.5%), the management told reporters.
Casa deposits grew 5.5% to Rs 4,73,637 crore and international deposits grew by 14.8% to Rs 2,31,351 crore.
Corporate advances grew 4.2% to Rs 3,70,266 crore.
The share of retail, agri and MSME loans (RAM) improved by 300 bps to 62.7% and the RAM portfolio grew 18%.
Total provisions other than tax and contingencies came down to Rs 1,011 crore from Rs 1,552 crore, of which NPA provisions and write-offs came in at Rs 1,269 crore from Rs 1,686 crore.