BoB net jumps 61%

Supported by strong growth in net interest income (NII) and core fee-based income, state-run Bank of Baroda’s net profit rose 60.7 per cent for the quarter ended September.

The lender reported a net profit of Rs 1,020 crore on a total income of Rs 5,840 crore in the second quarter. It had a net profit of Rs 634.2 crore in the year-ago period, the bank said in a filing to the Bombay Stock Exchange.

“The profit has been largely driven by increasing core business activities...,”Chairman and Managing Director MD Mallya said.

The bank’s NII rose 46.8 per cent to Rs 2,038 crore, he added.

The lender expected 23-24 per cent rise in advances in the current financial year, he said.

The bank planned to open 400 more branches in India, taking the total number to 3,500. It was also planning to add three branches overseas, in addition to the two already opened this year, he said.

Chief Economist Rupa Rege Nitsure said, “We expect to maintain the domestic net interest margin at 3.62 per cent and the global net interest margin at 3.02 percent in the current financial year.”

Shares of the bank closed at Rs 1,010.80, up 2.07 per cent in a weak Mumbai market.

Further, the bank earned an interest of Rs 5,158.6 crore, as against Rs 4,135.4 crore in the year-ago period.

During the six months ended September, the bank clocked a 38 per cent rise in net profit to Rs 1,878.1 crore, as against Rs 1,319.5 crore in the year-ago period. Total income stood at Rs 11,184.1 crore in the first six months, as against Rs 9,465.9 crore in the year-ago period.