Bank of Baroda posts net profit of Rs 1,208 cr in Q1; NII rises 16%

State-owned lender Bank of Baroda on Saturday reported a standalone net profit of Rs 1,208 crore for the quarter ending June 30, 2021. The lender had posted a loss of Rs 864 crore in the year-ago period (Q1FY21) and Rs 1,046 crore in the previous quarter (Q4FY21).

BoB's net interest income (NII) --- the difference between interest earned and interest expended --- increased 15.7 per cent to Rs 7,892 crore in the first quarter as compared to Rs 6,816 crore in the year earlier period.

Operating profit for the quarter increased by 41.2 per cent year-on-year to Rs 5,707 crore. Meanwhile, the domestic Net interest margin (NIM) of the lender stood at 3.12%. 

Non-interest income during Q1FY22 surged 63.4 per cent YoY to Rs 2,970 crore boosted by fee income which climbed 28 per cent. Non-fee income rose by massive 128.4 per cent YoY led by trading gains.

The Bank’s gross non-performing assets (NPAs) stayed flat sequentially at 8.86 per cent in Q1FY22. In Q4FY21, gross NPAs of the bank were at 8.87 per cent. Meanwhile, net NPAs stood at 3.03 per cent.

Domestic advances fell by 2.3 per cent YoY due to run-off of low yielding corporate loans.

BoB said it reoriented its loan book to high-yielding segments. Organic retail loans increased by 11.8 per cent year-on-year. Within the category, auto loans rose by 25 per cent YoY and personal loans grew by 19.5 per cent YoY. 

Provisions (other than tax) and contingencies for the reporting quarter stood at Rs 4,111 crore, down 23 per cent from Rs 5,349 crore in the last year period.

Capital adequacy ration (CAR) at the end of the quarter stood at 15.4 per cent with CET-1 at 11.25 per cent on a standalone basis.

Deposits of the bank stood at Rs 9.31 trillion as on June 30, 2021 or at the end of Q1.

On Friday, the lender's scrip rose 1.27 per cent to close at 83.5 on NSE.