On Wednesday, shares of Bank of Baroda rose as much as 8.9 percent to Rs 54.80 on NSE after the public sector bank reported a profit of Rs 507 crore for the March ended quarter.
Bank of Baroda had reported a net loss of Rs 8,875 crore in the same period last year, however, the numbers are not comparable as with effect from 1 April 2019, Dena Bank and Vijaya Bank were amalgamated with it.
Its profit for the last quarter of the financial year 2019-20 was largely due to a decline in provisions for non-performing loans by 69.23 percent to Rs 3,190 crore as against Rs 10,368 crore in the same quarter of last year.
For the full year, the bank reported a net profit of Rs 546 crore.
The bank said its net interest income (NII) in the March quarter increased to Rs 6,798 crore, a 5 percent rise on a year-on-year (YoY) basis, led by a decline in interest expense.
The operating profit came in at Rs 5,121 crore, an increase of 47.89 percent due to 23.21 percent decline in operating expenses, as the March 2019 quarter included amalgamation related one-off items.
Bank of Baroda's gross NPA (non-performing assets) ratio fell to 9.40 percent as on 31 March 2020 against 10.43 percent as on 31 December 2019 and 10.02 percent as on 31 March 2019.
Its net NPA ratio dropped to 3.13 percent as against 4.05 percent as on 31 December 2019, and 3.65 percent as on 31 March 2019.