Results: Bank of Baroda Q3 standalone profit at Rs 1,061 crore
Results: Bank of Baroda Q3 standalone profit at Rs 1,061 crore

Bank of Baroda on Wednesday reported a standalone net profit of Rs 1,061 crore for December quarter of the current financial year helped by lower provisions.

It had reported a net loss of Rs 1,407 crore for the year-ago period. On a consolidated basis, its profit after tax stood at Rs 1,196 crore during the three months ended December, the bank said in a release. "Overall from our perspective, given the situation, it is a fairly satisfactorily set of numbers. As far as loan growth is concerned, we did reasonably well. With a domestic loan growth of 8.3 per cent and within that retail at 13.7 per cent, the growth was encouraging.

"We have had a chance of keeping deposit growth aligned and that is something which worked well," bank's managing director and CEO Sanjiv Chadha told reporters.

Its provisions declined to Rs 3,957 crore from Rs 7,155 crore in the year-ago quarter, the bank said. Net interest income (NII) grew by 8.65 per cent to Rs 7,749 crore. Domestic net interest margins (NIM) increased to 3.07 per cent compared with 2.88 per cent last year in the same quarter. The bank expects domestic NIM to be 2.8-2.9 per cent by the end of this fiscal.

"There is pressure undoubtedly when it comes to NIM. Particularly in terms of high quality corporates. But so far we have been able to manage that reasonably well," he said.

Gross non-performing assets (NPAs) of the bank stood at 8.48 per cent as against 10.43 per cent. Net NPA ratio eased to 2.39 per cent from 4.05 per cent. Based on the Supreme Court's September 3 interim order, the lender has not classified any account pertaining to domestic operations as NPA, which was not NPA as of August 31, 2020. If it would have classified the said borrower accounts as NPA, the gross and net NPA ratio would have been 9.63 per cent and 3.36 per cent, respectively.

Its total restructuring book under COVID-19 stood at Rs 9,501 crore. Corporate segment accounts for 82 per cent of the total restructuring. Out of the total restructuring, Rs 1,079 crore has been implemented as of December 31, 2020.

During the quarter, fresh slippages stood at Rs 3,986 crore.

Chadha expects slippages from the corporate sector to come off going ahead as these companies have been stress-tested over the last few years.

He, however, said there is stress in MSME and retail segments which will play out over the next few months. "In terms of the known-unknowns, things which have not fully played out yet that is where the MSME and retail are. Particularly, retail is the kind of book which has not been stress-tested. "The kind of stress we are seeing now is something which is unprecedented and therefore it is likely that there may be some slippages which you cannot anticipate," Chadha noted. Its domestic advances grew 8.31 per cent to Rs 633,039 crore and deposits grew 6.74 per cent to Rs 8,34,811 crore. The bank expects a credit growth of 7-8 per cent during the current fiscal year. Capital adequacy (CRAR) stood at 12.93 per cent with CET-1 at 8.98 per cent on a standalone basis. Chadha said the bank is looking at accessing the market in the fourth quarter for the QIP, which might be in the range of Rs 2,000-4,000 crore. The bank's scrip ended at Rs 73.85, up 0.07 per cent on BSE on Wednesday.

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