Bank of Baroda rose 2.02% to Rs 42.9 after the PSU bank's net profit surged 128% to Rs 1679 crore in Q2 September 2020 from Rs 736.68 crore posted in Q2 September 2019.Total income during the quarter fell 6.24% year-on-year (YoY) to Rs 20,719.85 crore in Q2FY21. Net interest income (NIM) grew by 6.83% to Rs 7,508 crore in Q2FY21 over Q2FY20. Net interest margin in Q2FY21 slightly improved to 2.96% in Q2 September 2020 from 2.95% in Q2 September 2019. The bank's operating profit for Q2 September 2020 stood at Rs 5,552 crore, registering an increase of 4% year on year.
Gross non-performing assets (NPAs) stood at Rs 65,698.01 crore as on 30 September 2020 as against Rs 69,132.01 crore as on 30 June 2020 and Rs 69,968.95crore as on 30 September 2019. The ratio of gross NPAs to gross advances stood at 9.14% as on 30 September 2020 as against 9.39% as on 30 June 2020 and 10.25% as on 30 September 2019. The ratio of net NPAs to net advances stood at 2.51% as on 30 September 2020 as against 2.83% as on 30 June 2020 and 3.91% as on 30 September 2019.
In its interim order dated 3 September 2020, the Supreme Court of India directed that accounts which were not declared as NPA till 31 August 2020 shall not be declared as NPA till further orders. Pending disposal of the case in SC, the bank as a matter of prudence has made a contingent provision of Rs 195.20 crore in respect of such accounts that were not classified as NPA. Further, in respect of above accounts, interest income aggregating Rs 97.92 crore has been reckoned in operating profit and as prudent measure an equal amount has been made as additional provision against those assets. Total additional provision as on 30 September 2020 is Rs 293.12 crore. If the bank would have classified the said borrower accounts as NPA, the gross and net NPA ratio would have been 9.33% and 2.67% respectively.
The bank's slippage ratio stood at 0.54% in Q2 September 2020 from 3.95% in Q2 September 2019. Provisioning coverage ratio (PCR) increased to 85.35% as on 30 September 2020 compared with 77.88% as on 30 September 2019 and 83.3% as on 30 June 2020. Covid-19 related provision stood at Rs 1,748 crore.
Global advances increased by 5.3% led by domestic organic retail and agriculture loans which grew by 16.81% and 16.52% respectively. Auto loans increased by 34.8% YoY. Retail sanctions and disbursements in Q2FY21 are at 119% of last year's level compared with 37% in Q1FY21 indicating a broad normalization of economic activity.
Domestic deposits rose 6.69% to Rs 8,35,894 crore during the period under review. Domestic CASA ratio increased to 39.78%, up by 190 bps YoY. Domestic cost of deposits in Q2FY21 is lower at 4.42%, a decline of 53bps QoQ.
Capital adequacy (CRAR) stands at 13.26% with CET-1 at 9.21% on a standalone basis and for the consolidated entity it stands at 14.00% and 10.05% respectively.
Bank of Baroda is a public sector bank. The Government of India held 71.60% stake in BoB as on 30 September 2020.
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