Bank of Baroda Q2 net up 11.6% to Rs 1301 cr, NPAs climb

Public sector lender Bank of Baroda  has reported better-than-expected numbers in the quarter ended September 2012 but the non-performing assets (NPAs) increased during the quarter. Net profit rose by 11.6 percent year-on-year to Rs 1,301 crore in the quarter while analysts on an average had expected it at Rs 1,147 crore.

Net interest income increased 11.5 percent to Rs 2,862 crore in the second quarter of FY13 from Rs 2,567 crore in a year ago period. Analysts had estimated NII at Rs 2,852.80 crore.

Gross NPAs moved up by 14 basis points quarter-on-quarter to 1.98 percent for the quarter and net NPAs went up by 17 basis points to 0.82 percent.

Gross NPAs in the quarter ended September stood at Rs 5,879 crore as against Rs 5,319 crore and net NPAs came in at Rs 2,384.6 crore versus Rs 1,844.5 crore QoQ.

The bank has made provisions at Rs 646 crore, which was less than Rs 893.8 crore made in previous quarter.

Capital adequacy ratio declined 83 basis points QoQ to 12.91 percent in the July-September quarter of FY13.

Domestic net interest margin remained flat QoQ at 3.23 percent versus 3.22 percent.

Recoveries in the quarter were Rs 239 crore as against Rs 208 crore in previous quarter. Bank of Baroda has restructured assets worth Rs 973 crore in the September quarter.

Credit growth was 18-19 percent during the quarter. "We hope to achieve 19-20 percent credit, deposit growth in FY13," says the management in a press conference.

Global operations contributed 26-27 percent to profit during the quarter.

Source: www.moneycontrol.com

Thanks,
Gaurav Agarwal 
Head Dealer 
DENIP Consultants Pvt Ltd