BoB net up 20% in June quarter

Bank of Baroda’s (BoB) net profit grew 20.2 per cent to Rs 1,033 crore in the first quarter ended June, on steady growth in net interest income (NII). The government-owned lender’s net profit for the same quarter last year was Rs 859 crore.

Total income for the reporting quarter grew 36 per cent to Rs 7,273 crore from Rs 5,344 crore in the same quarter of 2010-11. NII grew 23.6 per cent to Rs 2,297 crore this quarter as against Rs 1,858 crore in April-June 2010. Net interest margin (NIM) for the June-ended quarter was 3.39 per cent.

NIM is expected to be under pressure in the coming months due to the rising cost of funds. “We have not been fully able to pass on the rising costs to customers. Hence, we will be deciding on the base rate soon, but maintaining the NIM will be difficult,” said, M D Mallya, chairman and managing director.

Its provisions and contingencies for the quarter rose 55.6 per cent to Rs 391 crore, from Rs 251 crore in the same quarter last year. Advances were up 25 per cent to Rs 2,32,340 crore.