State-run Bank of Baroda today said its net profit fell by 23 per cent to Rs 1,052 crore in the quarter ended June 30, dragged down by fall in treasury income and on higher staff expenses.
The bank had reported a profit after tax of Rs 1,362 crore in the same period last year.
"The whole of the last year or so we have seen an increase in NPA and restructured books. Therefore, it's not that profit has declined only in this quarter, rather for the last three or four quarters the profits have been declining," bank's Managing Director and CEO Ranjan Dhawan told reporters here.
Other income in the quarter declined by 6 per cent to Rs 967.23 crore from Rs 1,024.54 crore last year same quarter.
Its trading profit fell by 30 per cent to Rs 157 crore from Rs 224 crore.
Staff expenses rose by 22 per cent to Rs 1,345 crore in the period from Rs 1,106 crore.
Net interest income of the bank marginally grew by 4 per cent to Rs 3,460 crore from Rs 3,328 crore a year ago.
Domestic net interest margin improved to 2.89 per cent from 2.76 per cent.
In the quarter, the bank saw its asset quality worsening with gross non performing asset at 4.13 per cent as against 3.11 per cent. Net NPA level declined to 2.07 per cent from 1.58 per cent.
Fresh slippages in the quarter stood at Rs 1,685 crore from Rs 1,881 crore in the same period. It restructured Rs 147 crore worth of accounts in the period.
"In future also restructuring will occur. There are certain accounts, where restructuring will be required," Dhawan
said.
The bank upgraded Rs 527 crore worth of accounts while wrote off Rs 69 crore loans. Cash recovery was Rs 300 crore against Rs 563 crore in the same period last year.
Total business grew by 7.29 per cent to Rs 10,01,475 crore. Total deposits were up 7.51 per cent at Rs 5,93,087 crore, while total advances increased by 7 per cent to Rs 4,08,388 crore in the period.
