|Despite a steep rise in provisioning, Bank of Baroda has managed to post a 10% net profit growth. The bank's bottomline for the quarter ending June 30 read Rs. 1,139 crore against Rs. 1,033 crore a year ago.
The provisioning for bad loans, which is setting aside an amount for ambiguous amount rose by 129% and grew from Rs. 391 crore last year to Rs. 894 crore during the April-June quarter.
The bank's core income, net interest income (difference between interest earned and interest paid) grew by around 22% from Rs. 2,297 crore in the same period last year to Rs. 2,798 crore.
"Net interest margin during the quarter declined to 2.73 per cent from 2.87 per cent in Q1 FY12 on higher cost of deposits, and lower yield on advances," Mr. M.D. Mallya , Chairman and MD
The net nonperforming assets (NPA) also increased marginally by 21 basis points from 0.44 to 0.65 for the quarter on year-on-year basis.