MUMBAI: The Bank of Baroda has reported a healthy 23 percent jump in net income to Rs 5,238 crore for the quarter to September, up from Rs 4,253 crore in the year-ago period, boosted by non-core income and healthy margins along with better asset quality.
The second largest public sector lender’s gross bad loans improved by 82 bps to 2.50 percent while the net bad loans improved by 16 bps to 0.60 percent in the reporting quarter, leading to lower provisions thus boosting the bottom-line.
The city-based lender's total revenue rose 11 percent to Rs 35,445 crore compared to Rs 32,033 crore in the corresponding period last year, the bank told reporters in an earnings call Friday.
The net interest income rose 7 percent to Rs 11,622 crore compared to Rs 10,831 crore in the year-ago period, while net interest margin was down to 3.10 percent from 3.18 percent sequentially, but was up from 3.07 percent in the year ago period and non-interest income rose 24.2 percent to Rs 5,181 crore from Rs 4,171 crore in the year ago period.
Global deposits jumped 9.1 percent to Rs 13.64 trillion, from 12.5 trillion, of which domestic deposits increased 7.1 percent to Rs 11.51 trillion and international deposits jumped sharply by 21.2 percent on-year to Rs 2.12 trillion.
The domestic cost of deposits increased to 5.16 percent compared to 5.13 percent in the quarter ago period, and 4.99 percent in the year ago period and the cost of international deposits has also seen a sharp increase to 4.84 percent from 4.66 percent in the quarter ago period and 4.45 percent in the year ago period.
Global advances increased 11.6 percent to Rs 11.43 trillion of which retail advances grew 19.9 percent to Rs 2.32 trillion, taking the total gross advances up by 12.5 percent to Rs 9.39 trillion and international advances increased 7.6 percent to Rs 2.04 trillion.