Bank of Baroda Posts 17 Percent Increase in Net Profit
Public sector major Bank of Baroda has surprised the markets with 17 percent increase in quarterly net profit. The bank registered net profit of Rs1,362 crore during the first quarter compared to Rs 1,167 crore during the same period last year.
Bank of Baroda stock was up by more than a percent. The net interest income grew by 15 percent at Rs 3,328 crore. The non-interest income of the bank declined by 17 percent to Rs 1,024 crore during the first quarter.
The gross non-performing assets increase to 3.11 percent at June end compared to 2.94 percent during the period ending March 2014. The bank has written-off advances worth Rs 493 crore during the quarter.
Market experts believe that the high NPA periods could be behind us as the economy is showing signs of recovery. The next couple of quarters could be tough for banks. If the banks manage to keep NPA levels lower, the
banking stocks could see further momentum.