Mumbai: State-owned Bank of Baroda on Friday reported a steep 71.9 per cent decline in its net profit for the first quarter of FY27, with earnings hit by a one-time loss of Rs 5,680 crore despite healthy growth in its core banking business.
The lender posted a net profit of Rs 1,278 crore for the April-June quarter, down from Rs 4,541 crore in the same period last year, according to its stock exchange filing. The sharp fall was mainly due to the one-time loss booked during the quarter.
Despite the profit decline, the bank’s operating performance remained robust. Net interest income (NII) rose 9.5 per cent year-on-year to Rs 12,525 crore from Rs 11,435 crore, driven by steady loan growth. Interest income also increased 6.8 per cent to Rs 33,211 crore from Rs 31,091 crore a year ago.
Operating profit before provisions and tax came in at Rs 8,127 crore, slightly lower than Rs 8,236 crore reported in the corresponding quarter last year.
On the asset quality front, Gross Non-Performing Assets (GNPA) edged up to 1.99 per cent at the end of June from 1.89 per cent in March, while Net Non-Performing Assets (NNPA) increased to 0.50 per cent from 0.45 per cent over the same period.
The bank, however, reported a significant reduction in provisions. Total provisions fell to Rs 643 crore during the quarter, compared with Rs 3,150 crore in the previous quarter and Rs 1,967 crore in the year-ago period, indicating an improvement in underlying credit costs despite the slight deterioration in asset quality.
With inputs from IANS