Bank Of Baroda Posts Net Profit Of ₹507 Crore In Q4
Money & Banking
Bank of Baroda (BoB) reported a standalone net profit of ₹507 crore in the fourth quarter ended March 31, 2020. BoB (after reconciliation of the results of Dena Bank and Vijaya Bank, which got amalgamated with it) had recorded a net loss of ₹8,875 crore in the year-ago period.
The results for quarter year ended March 31, 2020, are not comparable with the year-ago period as the amalagamation between BoB, Dena Bank and Vijaya Bank was effective from April 1, 2019.
The bottomline was supported by a ₹2,230-crore write-back in provision for taxes (against a tax provision of ₹1,716 crore in Q4 FY19) and lower burden of provision towards non-performing asset (NPA) of ₹3,191 crore (₹10,368 crore).
Net interest income was up 5 per cent at ₹6,798 crore (₹6,473 crore in the year-ago quarter) and non-interest income was a tad down at ₹2,834 crore (₹2,865 crore).
Global net interest margin improved to 2.67 per cent from 2.62 per cent on the back of current account, savings account (CASA) deposits increasing to 39.07 per cent of total deposits against 37.26 per cent in the year ago period.
As per the notes to accounts, the bank extended moratorium of advance accounts of ₹79,589 crore, which were special mention account (SMA)/overdue category as on March 1, 2020.
Sanjiv Chadha, MD & CEO, said he said the quantum of accounts that were extended moratorium has come down from 65 per cent of advances in the March-April 2020 period to 55 per cent in May. This is expected to further decline to about 35 per cent by August.
He emphasised that the accounts that are under moratorium should not be considered as a proxy for stress.
Chadha said BoB has projected a business (deposit and advances) growth of 7 per cent, and slippages in FY21 will be a shade lower that in FY20.
The bank has extended the benefit of asset classification in advances accounts having outstanding of ₹4,053 crore and has made provision at the rate of 20 per cent (or ₹811 crore) on these advances amount to during current quarter as against the RBI’s minimum provision requirement of 5 per cent.
Published on
June 23, 2020
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Bank of Baroda (BoB) reported a standalone net profit of ₹507 crore in the fourth quarter ended March 31, 2020. BoB (after reconciliation of the results of Dena Bank and Vijaya Bank, which got amalgamated with it) had recorded a net loss of ₹8,875 crore in the year-ago period.
The results for quarter year ended March 31, 2020, are not comparable with the year-ago period as the amalagamation between BoB, Dena Bank and Vijaya Bank was effective from April 1, 2019.
The bottomline was supported by a ₹2,230-crore write-back in provision for taxes (against a tax provision of ₹1,716 crore in Q4 FY19) and lower burden of provision towards non-performing asset (NPA) of ₹3,191 crore (₹10,368 crore).
Net interest income was up 5 per cent at ₹6,798 crore (₹6,473 crore in the year-ago quarter) and non-interest income was a tad down at ₹2,834 crore (₹2,865 crore).
Global net interest margin improved to 2.67 per cent from 2.62 per cent on the back of current account, savings account (CASA) deposits increasing to 39.07 per cent of total deposits against 37.26 per cent in the year ago period.
As per the notes to accounts, the bank extended moratorium of advance accounts of ₹79,589 crore, which were special mention account (SMA)/overdue category as on March 1, 2020.
Sanjiv Chadha, MD & CEO, said he said the quantum of accounts that were extended moratorium has come down from 65 per cent of advances in the March-April 2020 period to 55 per cent in May. This is expected to further decline to about 35 per cent by August.
He emphasised that the accounts that are under moratorium should not be considered as a proxy for stress.
Chadha said BoB has projected a business (deposit and advances) growth of 7 per cent, and slippages in FY21 will be a shade lower that in FY20.
The bank has extended the benefit of asset classification in advances accounts having outstanding of ₹4,053 crore and has made provision at the rate of 20 per cent (or ₹811 crore) on these advances amount to during current quarter as against the RBI’s minimum provision requirement of 5 per cent.
Published on
A letter from the Editor
Dear Readers,
The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill.
In these difficult times, we, at BusinessLine, are trying our best to ensure the newspaper reaches your hands every day. You can also access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute.
But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.
I appeal to all our readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. You can help us by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section.
Our subscriptions start as low as Rs 199/- per month. A yearly package costs just Rs. 999 – a mere Rs 2.75 per day, less than a third the price of a cup of roadside chai..
A little help from you can make a huge difference to the cause of quality journalism!
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