BOB Q2 rises up 11.5% at Rs 1,301 cr

BANKING

BOB Q2 rises up 11.5% at Rs 1,301 cr

Mumbai: Public sector Bank of Baroda Monday posted 11.6%  rise in net profit to Rs 1,301.39 crore for the July-September quarter on the back of good growth in core income. The bank's net profit stood at Rs 1,166.08 crore in the same period last year. Total income of the bank rose by 19.6 percent to Rs 9,550.86 crore in the second quarter of 2012-13 compared to Rs 7,985.78 crore in the same period last year. "Despite a difficult economic environment,

we have consistently performed in all parameters in the recent past and hope to maintain the momentum," Bank of Baroda Chairman and Managing Director M D Mallya told reporters here.  While the net interest income (core income) of the bank grew by 11.5 percent to Rs 2,862.30 crore in the quarter, the net interest margin (NIM) stood at 3.22 percent for domestic operations.

"There was an apprehension in the market that NIM would be impacted due to the current economic environment. However, we were able to protect the NIM," he said. During the second quarter, the bank, however, witnessed a rise in non-performing assets (NPA).

“The rise in bad loans is not a major concern or an unexpected development. When the overall system is in stress, it is bound to impact the asset quality of banks. We are less impacted,” Mallya said.During the quarter,

BoB logged a net interest income of Rs.2,862 crore, up 11.5% from Rs.2,567 crore in the year-ago period.

The bank also said its current account, savings account (CASA) ratio stood at 32 percent by the end of second quarter. The bank posted 11 percent increase in its net profit to Rs 2,440.25 crore in the first half of the fiscal (H1).

Its total income rose by 23.7 percent to Rs 18,879 crore during this period. The bank has a capital adequacy ratio of 12.91 percent as on September 30, 2012. Referring to credit growth, the bank said its advances grew by 22.2 percent to Rs 292,181 crore by September end and total deposits rose by 24 percent to Rs 408,150 crore during the period."We hope that net NPA will be maintained below 0.9 percent," Mallya said  The total restructuring in the second quarter stood at Rs 930 crore.