Bank of Baroda gains post Q2 results

The stock rallied 6% to Rs 171 on BSE after the bank posted a more than four-fold jump in profit at Rs 552 cr for the quarter ended September 30, 2016.

Bank of Baroda has rallied 6% to Rs 171 on BSE in early morning trade after the state-owned bank reported over four-fold jump in net profit at Rs 552 crore for the quarter ended September 30, 2016 (Q2FY17). The bank had posted a profit of Rs 124 crore in the same quarter last fiscal.

Net interest income (interest income minus interest expenses) rose 5.6% at Rs 3,426 crore against Rs 3,244 crore in the corresponding quarter last year.

Provisions for non-performing assets (NPAs) or bad loans also declined to Rs 1,630 crore during the quarter under review, as against Rs 1,844 crore in the same period of last financial year.

“Operating Profit at Rs 2,690 crore, up by 15.10% year on year is the highest in 6 quarters,” Bank of Baroda said in a statement.

Gross non-performing assets (NPAs)/ stressed assets position remains stable; continued focus on recovery and upgradation, it added.

The bank’s gross non-performing assets (GNPA) stood at Rs 42,949 crore in Q2FY17 as compared to Rs 42,991 crore in Q1FY17. The Gross NPA stands at 11.35% in Q2FY17 against 11.15% in Q1FY17. Its Net NPA stands at 5.46% in Q2FY17 while at 5.73% in Q1FY17.