BoB profit up 11.6% in Q2

The bank had a net profit of Rs 1,166.08 cr during the same quarter of the previous fiscal

Bank of Baroda (BoB) posted an 11.6 per cent rise in net profit to Rs 1,301 crore for the July-September quarter, on the back of good growth in core income. The net profit stood at Rs 1,166 crore in the same period last year. The total income rose by 19.6 per cent to Rs 9,551 crore in the second quarter of 2012-13, compared with Rs 7,986 crore in the same period last year.

“Despite a difficult economic environment, we have consistently performed in all parameters in the recent past and hope to maintain the momentum,” said M D Mallya, CMD. While the net interest income of the bank grew 11.5 per cent to Rs 2,862 crore in the quarter, the net interest margin stood at 3.22 per cent for domestic operations. Gross NPAs rose to 1.98 per cent of loan assets as on September 30, compared to 1.41 per cent at the end of second quarter of the previous financial year.

Similarly, net NPA stood at 0.82 per cent in the quarter. "There was an apprehension in the market that NIM would be impacted due to the current economic environment. However, we were able to protect the NIM," he said.

During the second quarter, the bank, however, witnessed a rise in non-performing assets (NPA).

The gross NPAs rose to 1.98 per cent of loan assets as on September 30, 2012, compared to 1.41 per cent at the end of second quarter of the previous fiscal.

Similarly, net NPA stood at 0.82 per cent in the quarter.

"We hope that net NPA will be maintained below 0.9 per cent," Mallya said.

The total restructuring in the second quarter stood at Rs 930 crore.

"Restructuring pipeline is not big for the bank and there are only one or two accounts which are considered for restructuring," he said, adding that the fresh NPA addition in the second quarter stood at around Rs 1,340 crore.

The bank also said its current account, savings account (CASA) ratio stood at 32 per cent by the end of second quarter.