Bank of Baroda Sees a 10% Surge in Net Profit Amidst Declining Bad Loans

Bank of Baroda reported a 10% increase in net profit to Rs 4,458 crore for the June 2024 quarter. This growth was driven by a decline in Gross and Net NPAs. The bank's income rose to Rs 32,116 crore, with interest income up to Rs 29,629 crore. Provisions and contingencies also decreased, bolstering the capital adequacy ratio.

Bank of Baroda (BoB) on Wednesday reported a 10% increase in standalone net profit to Rs 4,458 crore for the June 2024 quarter, driven by a decline in bad loans.

The state-owned bank saw its net profit rise from Rs 4,070 crore in the corresponding period last year.

BoB's total income for the quarter increased to Rs 32,116 crore, up from Rs 29,878 crore, according to a regulatory filing.

Interest income also climbed to Rs 29,629 crore from Rs 26,556 crore year-on-year.

Gross Non-Performing Assets (NPAs) fell to 2.88% of gross advances by June 2024, down from 3.51% in FY24.

Similarly, net NPAs decreased to 0.69% from 0.78% at the end of the same quarter in the previous year.

This reduction led to provisions and contingencies dropping to Rs 1,011 crore during April-June FY25, compared to Rs 1,947 crore in the same period last year.

The bank's capital adequacy ratio saw an improvement, reaching 16.82% by the end of June 2024, compared to 15.84% a year earlier.

(With inputs from agencies.)