Bank of Baroda Q3 net drops 55% as provisions for bad loans nearly double

Gross bad loans as a percentage of total loans stood at 11.31% at December-end, compared with 11.16% in the previous quarter and 11.4% a year ago

Public sector lender Bank of Baroda’s third-quarter net profit declined 55 per cent over the previous year quarter but asset quality improved.

The bank’s net profit fell to Rs 1.12 billion in the quarter ended December, compared with Rs 253 billion in the year-ago quarter.

Net interest income for the December-quarter rose 40.2 per cent to Rs 43 billion over Rs 31 billion in year-ago quarter.

The net interest margin, the difference between the yield on advances and cost of fund, improved sequentially to 2.72 per cent.

The capital adequacy ratio (CRAR) for the quarter was 11.55 per cent as