Our Bureau Bank of Baroda’s net profit declined by 56 per cent in the third quarter ended December 31, 2017, to ₹112 crore against ₹253 crore in the year-ago period due to a surge in loan-loss provisions.

The public sector bank’s net interest income rose 40 per cent year-on-year (y-o-y) to ₹4,394 crore against ₹3,134 crore in the year-ago period.

Other income, including commission/exchange, recovery in written-off accounts, profit on exchange transactions, etc., was 6 per cent per cent lower at ₹1,673 crore ( ₹1,775 crore a year ago).

Net interest margin improved to 2.72 per cent in the reporting quarter from 2.31 per cent in the year-ago quarter.

Provision for non-performing assets, including for accounts referred to the National Company Law Tribunal (NCLT) shot up to ₹3,155 crore (₹1,638 crore).

In compliance with the RBI directives, BoB said it has made a provision of ₹145 crore (₹308 crore in this financial year so far) for accounts referred to the NCLT. The bank added that it will provide the remaining ₹857 crore in the next quarter.

Slippages, NPAs

During the reporting quarter, net slippages amounted to ₹2,173 crore. As at December-end 2017, gross non-performing assets (GNPAs) stood at ₹48,480 crore against ₹46,307 crore as at December-end 2016.

GNPAs edged up to 11.31 per cent of gross advances as at December-end 2017 against 11.16 per cent as at September-end 2017.

As of December-end 2017, total deposits declined 3 per cent y-o-y to ₹5,73,265 crore against ₹5,89,859 crore a year ago.

Total advances rose 14 per cent to ₹3,99,380 crore against ₹3,49,960 crore as of December-end 2016.