Bank of Baroda Q2 net jumps 73% to Rs 737 cr; stock falls 2.3% on BSE

State-owned Bank of Baroda on Friday reported a jump of 73.2 per cent in its net profit to Rs 736.68 crore in the second quarter ended September 30.

The bank had posted a net profit of Rs 425.38 crore in the corresponding quarter of the previous fiscal.

Its total income rose to Rs 22,097.91 crore for the second quarter of 2019-20, compared with Rs 13,429.95 crore a year ago, the bank said in a regulatory filing.

The lender improved on its bad assets, with the gross non-performing assets (NPAs) coming down to 10.25 per cent (Rs 69,968.95 crore) of the gross advances by the end of September 2019, compared with 11.78 per cent (Rs 55,121.37 crore) in the year-ago period.

Net NPAs fell to 3.91 per cent (Rs 24,894.38 crore) from 4.86 per cent (Rs 21,059.22 crore).

However, the bank raised the provisions for bad loans and contingencies to Rs 4,209.16 crore for the quarter, from Rs 2,429.54 crore a year ago.

Of this, the provisions for bad loans and diminution value of restructured accounts for the quarter stood at Rs 3,425.33 crore, up from Rs 1,466.56 crore.

The bank said it received an amount of Rs 7,000 crore towards preferential allotment of equity shares from the government during the quarter.

Non-performing assets provisioning coverage ratio stood at 77.88 per cent at the end of September 2019.

Shares of Bank of Baroda closed at Rs 93.80 apiece, down 2.39 per cent from the previous close.