Bank of Baroda (BoB) reported a 28 percent increase in net profit for the second quarter of the fiscal year, reaching Rs 4,253 crore. This growth can be attributed to a reduction in bad loans and an increase in interest income. In the same quarter of the previous fiscal year, the state-owned lender had recorded a net profit of Rs 3,313 crore.
According to a regulatory filing, BoB’s total income for the second quarter of the fiscal year 2023-24 rose to Rs 32,033 crore compared to Rs 23,080 crore during the same period a year ago. During this period, interest income also experienced significant growth, reaching Rs 27,862 crore, compared to Rs 21,254 crore in the same quarter of the previous year.
As for asset quality, BoB showed improvement, with gross non-performing assets (NPAs) decreasing to 3.32 percent of gross advances the end of September 2023, compared to 5.31 percent in the same period last year. Net NPAs also saw a decline, dropping from 1.16 percent to 0.76 percent during the same quarter a year ago.
Provisions for bad loans and contingencies increased to Rs 2,161 crore in the quarter, up from Rs 1,627 crore a year ago. Additionally, BoB’s net interest margins rose to 3.33 percent at the end of September 2022. The capital adequacy ratio also improved, reaching 15.30 percent compared to 15.25 percent at the end of September 2022.
These positive financial results indicate Bank of Baroda’s strong performance and its ability to effectively manage its loan portfolio. With a decline in bad loans and an increase in interest income, BoB demonstrates its commitment to maintaining financial stability and providing value to its shareholders.
In the highly competitive banking industry, Bank of Baroda’s solid financial performance positions the institution as a leading player in the market. Its proficient management and focus on asset quality make it a preferred choice for customers seeking reliable banking services. With its strong presence and commitment to growth, Bank of Baroda aims to continue delivering impressive financial results in the future.