BoB FY20Q1 profit at Rs 710 cr, but asset quality weakens
New Delhi: In the first quarter of the current financial year, state-owned Bank of Baroda (BoB) was back in the black with its net profit, after amalgamation, settling at Rs 710 crore. This is the first financial result declared by the public sector bank after the three-way merger of BoB, Dena Bank and Vijaya Bank took effect in April this year.
The bank had recorded a standalone loss of Rs 49 crore in June quarter of FY2018-19, while the loss in the March quarter stood at Rs 991.37 crore.
Net interest grew by 2.6%
Net interest income during the quarter went up by 2.6 percent to Rs 6,496 crore as compared to the corresponding period in the previous fiscal. This caused a drop in NIM to 2.73 percent in the first quarter of FY2019-20 from 2.78 percent (adjusted for IT refund) in the previous quarter, the public sector lender said.
Credit growth at 6.4%
While the year-on-year credit growth of the amalgamated entity moderated to 6.4 percent, BoB standalone continued to grow in line with its trend rate of growth. Domestic advances increased by 5.18 percent year-on-year to Rs 5.33 lakh crore in Q1, primarily as retail loans went up by 20.54 percent year-on-year. Domestic deposits increased by 8.87 percent year-on-year to Rs 7.85 lakh crore in Q1.
Asset quality goes down
The asset quality of the amalgamated entity went down with gross non-performing assets (NPA) as a percentage of gross advances rising 26 basis points (bps) sequentially to 10.28 percent and net NPA increasing 30 bps QoQ to 3.95 percent in Q1.
Credit cost improved slightly to 2.04 percent in the June quarter, from 2.
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03 percent in March quarter, the bank said.
Fresh slippages for the June quarter stood at Rs 5,583 crore, down on a quarter-on-quarter basis. And the provision for NPA stood at Rs 3,168 crore.
"Exposure in accounts under NCLT-1 list was Rs 5,820 crore and NCLT-2 list was Rs 6,957 crore as on June quarter 2019. Provision coverage under NCLT-1 and NCLT-2 list was 97.42 percent and 84.86 percent, respectively," a regulatory filing said.