Earnings of BoB drop 36%
Bank of Baroda (BoB) on Tuesday reported a 36 per cent fall in net profit at Rs 355 crore for the quarter ended September because of a higher provisioning for bad assets.
- Published 15.11.17
New Delhi: Bank of Baroda (BoB) on Tuesday reported a 36 per cent fall in net profit at Rs 355 crore for the quarter ended September because of a higher provisioning for bad assets.
The public sector lender had earned a net profit of Rs 552 crore in the year-ago period.
Total income of the bank rose 3.68 per cent to Rs 12,490 crore during the July-September quarter of 2017-18 compared with Rs 12,047 crore in the second quarter of 2016-17.
Gross non-performing assets (NPAs) declined to 11.16 per cent of gross loans by the end of the second quarter from 11.35 per cent in the same period of last year and also from 11.40 per cent in the April-June quarter of the current financial year.
Net NPAs for the reporting quarter fell to 5.05 per cent of net advances from 5.46 per cent in the year-ago period.
In absolute value, gross NPAs were Rs 46,306.83 crore during the quarter against Rs 42,949.25 crore in the year-go period. Net NPAs stood at Rs 19,572.62 crore compared with Rs 19,341.95 crore.
The provisioning for bad loans rose to Rs 1,847.22 crore in the quarter against Rs 1,630.45 crore.
Bank of Baroda said it made provision of 20 per cent on secured sub-standard advances. The bank has also made an additional provision of Rs 22.06 crore in respect of standard advances to stressed sectors of the economy.
"Due to changes in appropriation of recovery in NPA accounts, additional income of Rs 93 crore has been recognised during the September quarter," it added. PTI