Bank of Baroda Q1 profit beats forecast, up 17%; NPA rises

Net interest income, the difference between interest earned and interest expended, grew 15.2 percent, higher-than-expected, to Rs 3,328.3 crore during the same period while other income (non-interest income) declined 16.7 percent on yearly basis to Rs 1,024.54 crore in the quarter gone by.

Public sector lender  Bank of Baroda suprassed street expectations with the first quarter (April-June) net profit rising 16.6 percent at Rs 1,362 crore compared to Rs 1,167.9 crore in same quarter last year on account of lower provisions but impacted by lower other income and higher tax expenses. Net interest income, the difference between interest earned and interest expended, grew 15.2 percent, higher-than-expected, to Rs 3,328.3 crore during the same period while other income (non-interest income) declined 16.7 percent on yearly basis to Rs 1,024.54 crore in the quarter gone by. Asset quality deteriorated with the gross non-performing assets (gross NPA) rising sequentially (up 12 basis points year-on-year) to 3.11 percent in June quarter from 2.94 percent in March quarter and net NPA increasing quarter-on-quarter (down 11 bps Y-o-Y) to 1.58 percent from 1.52 percent during the same period.