On Tuesday, Bank of Baroda posted its net profit for the fourth quarter ended in March to stand at Rs. 507 crore and net profit in FY20 at Rs. 546 crore. The consolidated net profit for the full fiscal year stands at Rs. 928 crore.
On Wednesday, the shares of the bank surged as much as 9 percent in early trade, as reported by CNBC TV18. At 11.15 IST, the bank shares were trading on the green side at Rs. 53.05, up 5.05 percent on the NSE. The net profit in the quarter under review was owing to lower provisions, higher operating income, and tax write-back, reported the publication.
The operating profit for quarter four increased by 47.89 percent at Rs. 5,121 crore, owing to a decline in its operating expenses. The operating profit for the full fiscal increased by 19 percent to stand at 19,691 crore.
The Net interest income (NII) increased by 5.02 percent Y-o-Y to Rs. 6,798 crore owing to a decline in interest expenses. This was in comparison to Rs. 6,473 in the same quarter last year.
In a filing, the bank said that the Global net interest margin during the fourth quarter boosted from 2.62 percent to 2.67 percent. Moreover, the domestic NIM advanced from 2.68 percent to 2.78 percent.
The bank’s asset quality also improved as gross non-performing assets (NPA) dropped from 10.43 percent to 9.40 percent. The gross non-performing assets for the March quarter is at Rs. 69,381 crore compared to Rs. 73,140 crore in the December quarter. In addition, NPA declined by 3.13 percent in the quarter under review.
“Fresh slippage for the quarter was at INR 3,050crore. Provision for NPAs was at INR 3,190crore for the quarter,” the bank said in a release.
Further, the Domestic credit deposit ratio improved to 80.67 percent in the fourth quarter compared to 78.73 percent in the same quarter previous fiscal year.
“The Bank’s total business stood at INR 16,36,106 crore as on March 31, 2020, up by 4.4% from INR 15,50,627 crore as on December 31, 2019,” the management mentioned in the release.
