Mumbai: Bank of Baroda Saturday reported an 88 per cent jump in net income at Rs 4,070 crore in the June quarter boosted by healthy interest income on the back of asset repricing and higher loan sales.
Net interest income (NII) grew 24.4 per cent to Rs 10,997 crore, coupled with robust growth in non-interest income that grew 2.8 times.
Sustained NII growth was buoyed by an 18 per cent growth in advances coupled with a traction in net interest margins (NIM), which grew 25 basis points (bps) to 3.27 per cent, the bank said in a statement.
Global NIM stood at 3.27 per cent, an increase of 25 bps, while domestic NIM rose 34 bps to 3.41 per cent. This has had the yield on advances increasing to 8.40 per cent during the reporting quarter from 6.58 per cent in Q1FY23.
Cost of deposits rose to 4.68 per cent from 3.46 per cent and the cost to income ratio came down to 45.36 per cent from 54.81 per cent, which excluding treasury improved by 168 bps to 47.41 per cent.
The bank saw a significant improvement in its asset quality with reduction in GNPA (Gross Non Performing Asset) by 275 bps to 3.51 per cent and improvement in NNPA (Net NPA) to 0.78 per cent, down 80 bps. In absolute terms GNPA came down 33.8 per cent to Rs 34,832 crore and the provision coverage ratio stood at 93.23. Slippage ratio declined to 1.05 per cent as against 1.71 per cent a year ago.
PTI