Bank of Baroda Q1 net plunges 60%, IDBI profit vaults 30%

In yet another contrasting performance of state-run and privately-run banks, Bank of Baroda, India's second-biggest state-run lender by assets, reported a 60 per cent fall in its fiscal first-quarter profit while state-owned but privately run IDBI bank saw a 78 per cent jump in quarterly profit.

BOB's net profit fell to Rs424 crore ($63.4 million) for the three months ended 30 June 2016, from Rs1,052 crore a year earlier, the bank said in a statement on Thursday.

The Mumbai-based lender said its gross bad loans as a percentage of total loans rose to 11.15 per cent as of end-June from 9.99 per cent at the end of March this year.

Meanwhile, state-owned but privately run IDBI Bank has reported over 78 per cent jump in net profit to Rs241 crore for the first quarter ended 30 June 2016-17, on higher income despite a trebling of bad loan provisioning from the year-ago period.

The bank's net profit stood at Rs135 crore in the similar quarter of the previous fiscal (2015-16).

"Total income during the June quarter of 2016-17 rose to Rs8,219 crore, up from Rs7,903 crore earned in the same period a year ago," IDBI Bank stated in a release.

IDBI Bank's net interest income (NII) for the April-June 2016-17 quarter increased by 14.2 per cent to Rs1,706 crore from Rs1,494 crore a year ago.

There was a further slippage in the bank's non-performing assets (NPAs) with gross bad loans rising to 11.92 per cent (Rs27,275.15 crore) of the gross advances as of June 2016, up from 6.64 per cent (Rs14,112.18 crore) a year ago.

Net NPAs too rose to 7.47 per cent (Rs16,247.81 crore) of net advances compared to 3.18 per cent (Rs6,496.17 crore).

Provision for bad loans and contingencies more than doubled to Rs2,432.24 crore, against Rs878.70 crore reserved in the same quarter last year.

Bank's business as of June 2016 increased by 5.77 per cent to Rs4,71,000 crore, from Rs4,45,000 crore a year ago, whereas the bank's deposits grew by 5.26 per cent to Rs2,54,000 crore, the advances were up 6.37 per cent at Rs2,17,000 crore.

IDBI stock closed 2.4 per cent higher at Rs68.35 on BSE while the Bank of Baroda stock was down 5.5 per cent at Rs151.60 by 0353 GMT in a Mumbai market that in turn fell 0.3 per cent.