Provisions and contingencies fell 27.33 percent from a year ago to Rs 2507.04 crore.
Bank of Baroda, on February 5, reported a 107 percent rise in net profit for December quarter on the back of higher net interest income and lower provisions. The net profit for the quarter stood at Rs 2,197.03 crore against Rs 1,061.11 crore a year ago.Net interest income (NII) — difference between interest earned and interest expended — increased 14.38 percent year-on-year (YoY) to Rs 8,552.03 crore. Net interest margin (NIM) – a key measure of profitability – stood at 3.13 percent, an increase of 36 basis points (bps) YoY.Provisions and contingencies fell 27.33 percent from a year ago to Rs 2,507.04 crore.
Other income, which includes fee, trading profit and miscellaneous income, slipped 13.45 percent YoY to Rs 2,519.26 crore in the three months to December.
Gross non-performing assets (NPAs) declined to Rs 55,997 crore in the quarter from Rs 63,182 crore in 2021. Gross NPAs ratio –bad loans as a percentage of gross advances — were at 7.25 percent in Q3 FY22, down 86 bps sequentially and 123 bps YoY. Post-provisions, the net NPA ratio was at 2.25 percent in Q3, against 2.83 percent in the September quarter of FY22 and 2.39 percent in the year-ago quarter.
Advances grew 4.75 percent YoY Rs7.32 trillion as on 31 December of which retail loan portfolio increased 11.13 percent to Rs 1.28 trillion. The bank’s corporate loan book was flat from a year ago to Rs 2.91 trillion. Home loans and auto loans grew 6.57 percent and 20.54 percent respectively. Small business loans rose marginally 2.39 percent while gold loans increased 28 percent.
Yield on advances improved sequentially to 6.92 percent in the quarter from 6.5 percent. Deposits grew 2.45 percent YoY to Rs9.78 trillion.
The bank’s fresh slippages in the third quarter stood at Rs 2830 crore as compared to Rs 5,223 crore during Q2 and Rs 3986 crore in Q3FY21. Its recoveries and upgrades from NPAs during the quarter were Rs 2032 crore and Rs 1272 crore against Rs 1966 crore and Rs 2106 crore respectively, sequentially.
Write-offs for the quarter were at Rs 3694 crore versus Rs 5213 crore in the second quarter and Rs 4,708 crore a year ago.
