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.
The bank has cash recovery of Rs 564 crore during June quarter while write-offs were Rs 493 crore and upgrades at Rs 741 crore for the quarter. During the quarter, Bank of Baroda sold financial assets with net book value of Rs 185.54 crore to asset reconstruction companies on cash and security receipt basis. Provisions fell significantly to Rs 527 crore in first quarter of current financial year compared to Rs 1,153 crore in previous quarter and Rs 1,018 crore in corresponding quarter of last fiscal. Provision coverage ratio of the bank was 66.68 percent as on June 2014. The bank said it has made provision at 20 percent on the secured sub-standard advance as against the regulatory requirement of 15 percent. "The bank has made additional ad-hoc provision of Rs 340.56 crore for the quarter in certain non-performing domestic advance accounts," it added. Capital adequacy ratio (as per Basel III norms) declined to 11.91 percent in June quarter from 12.28 percent in March quarter and 12.46 percent in same quarter last year. Tax expenses more than doubled to Rs 591.01 crore during April-June quarter from Rs 250 crore in corresponding quarter of last fiscal.
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.
The bank has cash recovery of Rs 564 crore during June quarter while write-offs were Rs 493 crore and upgrades at Rs 741 crore for the quarter. During the quarter, Bank of Baroda sold financial assets with net book value of Rs 185.54 crore to asset reconstruction companies on cash and security receipt basis. Provisions fell significantly to Rs 527 crore in first quarter of current financial year compared to Rs 1,153 crore in previous quarter and Rs 1,018 crore in corresponding quarter of last fiscal. Provision coverage ratio of the bank was 66.68 percent as on June 2014. The bank said it has made provision at 20 percent on the secured sub-standard advance as against the regulatory requirement of 15 percent. "The bank has made additional ad-hoc provision of Rs 340.56 crore for the quarter in certain non-performing domestic advance accounts," it added. Capital adequacy ratio (as per Basel III norms) declined to 11.91 percent in June quarter from 12.28 percent in March quarter and 12.46 percent in same quarter last year. Tax expenses more than doubled to Rs 591.01 crore during April-June quarter from Rs 250 crore in corresponding quarter of last fiscal.
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