State-owned lender Bank of Baroda has reported nearly five-fold year-on-year (YoY) growth in its net profit at Rs 736.68 crore for the second quarter ended September 30, 2019, driven by higher other income.
"The Vadodara-headquartered bank had posted net profit of Rs 165.4 crore in the same quarter last year," Bank of Baroda said in a filing to the Bombay Stock Exchange on Friday.
The bank's net interest income (NII), or the core income a bank earns by giving loans, rose 10.09 per cent YoY to Rs 7,028 crore in Q2 FY20, while net interest margin (NIM), a measure of profitability, stood at 2.81 per cent, up 19 basis points (bps) on a sequential basis.
The other income (non-interest income) zoomed to Rs 942 crore as compared to Rs 138 crore in the same period last year.
On 1 April, 2019, Bank of Baroda merged with two other public sector lenders, Dena Bank and Vijaya Bank.
Bank of Baroda's asset quality declined improved during September quarter, with gross non-performing assets (NPAs) ratio declining to 10.25 per cent versus 11.78 per cent in the year-ago quarter. Net NPA stood at 3.91 per cent as compared to 4.86 per cent in the corresponding quarter last year.
The bank's provisions stood at Rs 4,209 crore in the September quarter, up 6.9 per cent YoY, of which Rs 3,425 crore was for bad loans.
The bank reported slippages of Rs 6,001 crore in the second quarter of FY20, impacted by a few chunky accounts, the bank's management said.
The bank's advances were up 2 per cent YoY to Rs 5.33 lakh crore, while domestic deposits grew 4 per cent YoY to Rs 7.83 lakh crore.
Ahead of Q2 earnings, shares of Bank of Baroda closed trade at Rs 93.80 apiece, down 2.39 per cent, on the BSE on Friday.
Edited by Chitranjan Kumar