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Bank of Baroda back in the black, net profit rises to Rs 710 crore in Q1

This is the bank's first quarterly result after Dena Bank and Vijaya Bank were amalgamated with Bank of Baroda

Subrata Panda  |  Mumbai 

Bank of Baroda

State-owned lender has reported a net profit of Rs 710 crore in its April-March quarter of FY20 on account of higher non-interest income. In the same period in FY19, the lender had posted a loss of Rs 49 crore. This is the bank’s first quarterly result after Dena Bank and Vijaya Bank were amalgamated with

The net interest income (NII) of the lender saw a 2.61 per cent rise to Rs 6,496 crore in Q1FY20, compared to Rs 6,331 crore. The net interest margin (NIM), a measure of profitability of the banks, of for the quarter declined to 2.73 per cent, compared to 2.78 per cent in year-ago period on account of high deposit costs of erstwhile Vijaya Bank.

On asset quality, the gross non-performing assets (NPAs) of the lender rose to 10.28 per cent at Rs 69,714 crore as on June 30, 2019, as compared to 10.02 per cent in the previous March quarter. The net NPAs of the lender stood at 3.95 per cent at the end of the June FY20 quarter.

The total provisions for the bank declined 14 per cent year-on-year to Rs 3,566 crore in the June quarter of FY20 as opposed to Rs 4,167 crore in the same quarter last fiscal year. Fresh slippages for the quarter for the lender stood at Rs 5,583 crore.

The bank has also identified a watch list of Rs 16,500 crore, which could turn bad, of which Rs 10,700 crore is from Bank of Baroda, Rs 2,884 crore from Dena Bank, and Rs 2,856 crore from

Vijaya Bank. The bank also said around Rs 4,200-crore exposure to the troubled NBFC sector is currently stressed. And, they have a 10 per cent delinquency on Rs 8,000 crore Mudra loans. The stock of the bank closed 0.68 per cent down at Rs 109.55 on the BSE.

First Published: Thu, July 25 2019. 23:18 IST