Bank of Baroda has reported a turnaround performance in the third quarter, logging a net profit of ₹253 crore as against a net loss of ₹3,342 crore in the year-ago period.
The bottomline was supported by decline in interest expenses, jump in non-interest income, and lower burden of loan loss provisioning.
The public sector bank’s net interest income (difference between interest earned and interest expended) was up 16 per cent in the reporting quarter at ₹3,134 crore (₹2,705 crore in the year-ago period). Other income rose 59 per cent to ₹1,775 crore (₹1,113 crore).
Total deposits stood at ₹5,89,859 crore as at December 31, 2016, as against ₹5,89,687 crore as at December 31, 2015. The quarter also saw repayment of FCNR (B) deposits of over ₹11,500 crore mobilised during Q3 FY14.
Thanks to the deposit inflows during the demonetisation period, percentage of CASA (current account, savings account) deposits to total domestic deposits as at December 31, 2016, improved to 40.46 per cent as against 34.23 per cent as at September 30,2016. Total advances (net) declined 9 per cent year-on-year (y-o-y) to ₹3,49,960 crore as at December 31, 2016.
The bank, in a statement, said the quarter saw a turnaround in domestic credit growth. Domestic advances (net) increased by ₹3,539 crore during the reporting quarter to ₹2,50,033 crore.
Provisions for bad loans were lower at ₹1,638 crore (6,474 crore). Gross non-performing assets (GNPAs) marginally reduced to ₹42,642 crore from ₹42,949 crore as of end-September.
The gross NPA ratio stood at 11.40 per cent compared with 11.35 per cent in September-end 2016.
Bank of Baroda shares closed at ₹188.05 apiece, up 1.98 per cent on the BSE over the previous close.