Bank of Baroda (BoB) reported a profit of ₹507 crore for the January-March quarter on the again of wholesome buying and selling gains in contrast with the ₹991 crore loss in the year-earlier interval.
The numbers usually are not precisely comparable because the lender merged with Vijaya Bank and Dena Bank in April 2019. Trading profit in the fourth quarter of FY20 was ₹875 crore (₹502 crore). Fresh slippages for the quarter stood at ₹3,050 crore. Bad mortgage provisions stood at ₹3,190 crore (₹5,550 crore).
Asset high quality improved sequentially with gross NPAs declining to ₹69,381 crore as on March 31, 2020 (9.4% of gross advances) in contrast with the ₹73,140 crore (10.43%) as on December 31, 2019. Net NPA ratio was 3.13% as on March 31, 2020, down from the 4.05% as on December 31, 2019.
Provision protection ratio improved considerably to 81.33% in contrast with 77.77% as on December 31, 2019. While the general deposit development was 1.8%, the expansion is present and financial savings account (CASA) deposits was 6.75%. The ratio of CASA deposit to whole deposit was at 39.07% at finish March as in comparison with 37.26% 12 months in the past.
“The amalgamation was designed to ensure that the complementarity with the three banks are fully leveraged,” stated Sanjiv Chadha, MD & CEO, BoB.
“The improvement in the CASA ratio is one of the biggest benefits which has come. Vijaya Bank was largely funded by wholesale deposits with CASA at 25%. For BoB, it was 39%. When we began the year for the combined entity, it was 37%. We have been able to improve it by 180 bps,” he stated.