Shares of Bank of Baroda opened higher on Monday, the trading day after the announcement of its results for the second quarter of 2019-20. The stock rose as much as 5.4 percent to an intraday high of Rs 98.90 apiece on reporting a five-fold year-on-year increase in net profit for the period.
On 8 November, the state-owned lender posted a 73.2 percent increase in net profit to Rs 737 crore for July-September period when compared to Rs 425.38 crore for the same quarter of the previous year.
The bank's total income was higher at Rs 22,097.91 crore for the quarter under review as against Rs 13,429.95 crore a year ago. Its 'other income' for the period saw a significant rise from Rs 138 crore to Rs 942 crore, on a year-on-year basis.
Bank of Baroda's asset quality also improved with gross non-performing assets (NPAs) falling to 10.25 percent of gross advances at Rs 69,968.95 crore at the end of September 2019 as against 11.78 percent (Rs 55,121.37 crore) a year ago. The bank's net NPAs dropped to 3.91 percent (Rs 24,894.38 crore) from 4.86 percent (Rs 21,059.22 crore).
However, the lender's provisions were reported 6.9 percent higher at Rs 4,209 crore in the September-ended quarter, of which Rs 3,425 crore was for bad loans.
Bank of Baroda's merger with Dena Bank and Vijaya Bank became effective on 1 April 2019.