Bank of Baroda jumps 4% as profit jumps to Rs 471.2 crore

Bank of Baroda’s shares rose around 4 percent on Wednesday morning as traders bet on the steady results posted by the company.

It touched an intraday high of Rs 118.20 and an intraday low of Rs 116.00.

Bank of Baroda posted a 321.6 percent year-on-year (YoY) increase in its December quarter net profit at Rs 471.21 crore on strong growth in interest income and improved asset quality.

Net interest income (difference between interest earned and expended) increased to Rs 4,744 crore in Q3. Adjusting for IT refund of Rs 326 crore in December 2017, NII increased by 16.62 percent YoY. The domestic core fee income increased by 16.11 percent YoY to Rs 771 crore.

"With the bank on-boarding corporate customers on the basis of a well-defined target market and retail customers on a score-based approach, the credit quality of recently acquired portfolio has shown distinct improvement as measured by credit score external ratings available with credit rating agencies," Bank of Baroda said in a statement.

Provision for bad loans was at Rs 3,416 crore in Q3, up from Rs 3,155 crore in the year ago period.

Gross non-performing assets (NPA) ratio stood at 11.01 percent for Q3FY19 compared to 11.31 percent a year ago, and 11.78 percent in the September quarter.

Net NPA ratio declined to 4.26 percent in Q3Fy19 compared to 4.97 percent a year ago and 4.86 percent in the September quarter.

At 09:30 hrs Bank Of Baroda was quoting at Rs 116.60, up Rs 2.75, or 2.42 percent, on the BSE.

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Source: Moneycontrol