Bank of Baroda(BOB) Q3 result, posts net profit of Rs 253 crore

Bank of Baroda posted a net profit of Rs 253 crore for the third quarter ended December 31, 2016. The bank had a loss of Rs 3,342 crore, during the corresponding quarter of the previous year. Its net interest income- difference between interest earned and interest expended- rose 15.86% to Rs 3,134 crore from Rs 2,705 crore. 

The net interest margin for Domestic operations stood at 2.49% while global margin stood at 2.06%. The bank saw increase in percentage of deposits to total domestic deposits go up 40.46% as against 34.23% as at September 30,2016.

Bank saw increase in total advances to Rs 3,49,960 crore from Rs 3,84,272 crore. “The quarter saw a turnaround in domestic credit growth and domestic advances were Rs 2,50,033 crore as at December 31,2016 against INR 2,46,494 crore as at September 30,2016,” bank said in a statement. 

During the quarter, CASA deposits showed robust growth driven by deposit of cash after demonetization. The quarter also saw repayment of FCNR (B) deposits of over Rs 11,500 crore mobilized during Q3 FY 2013-14. 

Bank of Baroda BSE 1.98 % saw marginal improvement in asset quality over the subsequent quarter. Gross NPA of the bank reduced to Rs 42,642 crore as on December 31, 2016 as compared to Rs 42,949 crore as at September 30, 2016. Gross NPA ratio stood at 11.40% as compared to 11.35% as at September 30, 2016. The corresponding figures of the Net NPA ratio stood at 5.43% and 5.46% respectively. 

Total restructured standard assets of the bank were Rs 14,059 crore as on December 31, 2016. The total stressed assets including GNPA and restructured standard assets were 15.16%.