Bank of Baroda net profit up 19.85 percent

Our Banking Bureau
29 July 2004

Mumbai: Bank of Baroda has posted 19.85 percent increase in net profit at Rs.292.99 crore in the first quarter ended June 30, 2004 as against Rs.244.47 crore in the corresponding period last year. Similarly overall operating profit was up by 28.30 percent at Rs.596.49 crore from Rs.464.91 crore in Q1 2003-04.

Total income rose to Rs.1923 crore from Rs.1796.97 crore registering an increase of 7.01 percent. Interest income was lower by 3.68 percent at Rs.1528.41 crore from Rs.1586.88 crore last year. Adjusting for extraordinary income of Rs.75 crore being interest on refund of income tax in June 2003 (Rs.9 crore in June 04) the fall is marginal. The fall has been on account of fall in yields on the asset side.

Net interest income after adjusting for the extraordinary income as above, however, has grown by 14.43 percent to Rs.674.00 crore from Rs.589.00 crore registering a rise of 14.43 percent.

Other income rose by 87.82 percent to Rs.394.59 crore from Rs.210.00 crore. Treasury income by sale of investment rose to Rs.219.79 crore from Rs.67.59 crore. This includes gain on stock market operations of Rs.21.86 crores.

Total expenditure declined marginally by 0.42 percent at Rs.1326.51 crore from Rs.1332.06 crore. Interest expenditure declined substantially by 8.35 percent to Rs.845.37 crore from Rs.922.42 crore. Payments to and provisions for employees rose by 18.94 percent on the back of increased provisions towards pension, gratuity, leave encashment etc. Total provisions and contingencies rose by 37.68 percent to Rs.303.50 crore from Rs.220.44 crore.

Provisions for NPAs reduced by 64.46 percent to Rs.71.20 crore from Rs.200.31 crore. However provisions for depreciation on investments rose to Rs.58.51 crore from Rs.1.14 crore being net depreciation on securities (including stock market).