Bank of Baroda

The Bank posted all-round fall – in profitability and in asset quality. Yet, because the fall was not as steep as expected, the stock price of BoB rose. For Q1FY16, the bank posted a 23%(YoY) drop in net profit at Rs.1052 crore and the bottomline was impacted due to fall in other income, lower NII and higher provisioning. Other income for the quarter fell 6% at Rs.967 crore and NII grew but slower at 4% at Rs.3460 crore. This led to the operating profit slipping 11% at Rs.2202 crore. And provisions for bad loans rose by 14% to Rs.600 crore though sequentially, it showed a fall of 67%.

In terms of asset quality, things did not get any better. Gross NPA rose 41 bps (QoQ) at 4.13% while Net NPA rose 18 bps to 2.07%. BoB made a total provision of Rs 600 crore in the Q1 against Rs 527 crore (YoY), an annual increase of 14%.