Bank Of Baroda’s Profit Misses Estimates By 60% In Third Quarter
Bank of Baroda posts a profit of Rs 252.6 crore in the third quarter.
Public sector lender Bank of Baroda Ltd. posted a profit of Rs 252.6 crore in the third quarter, but still missed street estimates.
Net profit in the October-December quarter stood at Rs 252.6 crore compared to a loss of Rs 3,342 crore in the corresponding quarter of the previous financial year, the bank said in a stock exchange filing. The consensus of analyst estimates tracked by Bloomberg stood at Rs 636.5 crore.
Net interest income (NII) in the second quarter increased 15.9 percent to Rs 3,134.4 crore from Rs 2705.3 crore in the same quarter last year. The Bloomberg consensus of analyst estimates had pegged the figure at Rs 3,403.2 crore.
The bank’s pre-provisioning operating profit rose 52.3 percent over last year to Rs 2,595.2 crore, largely driven by NII growth.
Asset quality remained largely stable during the quarter. Gross non-performing assets rose 50 basis points to 11.4 percent from 11.35 percent sequentially. GNPA in absolute terms was slightly lower by 0.7 percent sequentially at Rs 42,642 crore.
Net non-performing assets decreased to 5.43 percent from 5.46 percent during the quarter.
The bank has made provisions worth Rs 1637.8 crore in the third quarter, 0.5 percent lower than the Rs 1,630.5 crore provisioned in the second quarter.
The total restructured standard assets of the bank were at Rs 14,059 crore against Rs 13,860 crore in the previous quarter. The lender also saw repayment of foreign currency non-residential bank (FCNR-B) deposits to the tune of Rs 11,500 crore.
Total deposits came in at Rs 5,89,859 crore as on December 31, 2016 versus Rs 5,89,687 crore in the same period last year, according to the bank’s press release. “During the quarter, current and savings account (CASA) deposits showed robust growth driven by deposit of cash after demonetisation,” according to bank’s press release.
Capital adequacy ratio (CAR) stood at 12.55 percent at the end of the third quarter, above the minimum CAR requirement of 10.25 percent at the end of the current fiscal, under the Basel III norms.