Bank of Baroda’s net profit in the first quarter of the current financial year increased by 79 percent to Rs 2,168 crore. Due to reduction in bad loans, the profit of the bank has increased.
Bank of Baroda’s net profit in the first quarter of the current financial year increased by 79 percent to Rs 2,168 crore.
Public sector Bank of Baroda reported a 79 per cent increase in net profit at Rs 2,168 crore in the first quarter of the current financial year. due to reduction in bad debt Bank profit has increased. The bank had a net profit of Rs 1,208 crore in the same quarter a year ago. The bank said in the information given to the stock exchanges on Saturday that the total income of the bank has increased to Rs 20,119.52 crore in the quarter under review, from Rs 19,915.83 crore last year.
Increase in income from bank interest
During this period, the interest income of the bank has also increased to Rs 18,937.49 crore. Whereas, it was Rs 17,052.64 crore in the same period last year. The bank’s non-interest income grew 12 per cent to Rs 8,838 crore in the first quarter. The fee income of the bank has also increased by 15 per cent.
However, the bank’s profit from operations declined by 19 per cent to Rs 4,528 crore from Rs 5,707 crore in the same period last year. On the asset quality front, the bank’s overall non-performing assets (NPA) improved in the June quarter. It is 6.26 percent in the last quarter, which was 8.86 percent last year. Gross NPAs or bad loans have come down from Rs 63,028.78 crore in June quarter last year to Rs 52,590.83 crore in June 2022.
Bank’s NPA reduced
Net NPAs have also come down from 3.03 per cent to 1.58 per cent. As a result, provision for bad loans and contingencies also came down to Rs 1,684.80 crore from Rs 4,005.40 crore in the June quarter last year.
Let us tell you that Bank of Baroda has recently increased the interest rates of fixed deposits. Interest rates have been increased on deposits of less than Rs 2 crore. The new interest rates have come into effect from July 28, 2022. Bank of Baroda has increased the interest rates on FDs of different tenors. According to the new rates, this bank is giving interest from 3 percent to 5.50 percent to its general customers and 3.50 percent to 6.50 percent to senior citizens.
After the increase in the repo rate, the FD rates are seeing an increase. On the other hand, retail loans have become costlier due to the increase in repo rate. The EMI of home loan etc. has increased.
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