State-owned lender Bank of Baroda on Tuesday reported a 19.7 per cent rise in net profit at Rs 425.4 crore for the September quarter on strong growth in retail banking.In the same quarter a year ago, profit stood at Rs 355.4 crore, India's second-largest public bank by market capitalisation said in a regulatory filing.An ETNow poll had earlier projected a net profit of Rs 590 crore.
Domestic Y-o-Y credit growth for September quarter, at 20.37 per cent, was led by retail loans, which increased by 33.55 per cent.
Home and auto loan growth was 39.76 per cent and 38.75 per cent, respectively.
Net interest income read Rs 4,492 crore for July-September, registering an annual growth of 20.75 per cent.Asset quality took a turn for the better as gross NPA (non-performing assets) of the public lender eased to 11.78 per cent during the said quarter from 12.46 per cent on a QoQ basis.
Net NPA too saw a decline to 4.86 per cent from 5.4 per cent sequentially.The bank set aside provisions for bad loans at Rs 1,467 crore.
Capital adequacy ratio read 11.88 per cent as on September 30.NIM (net interest margin) improved to 2.61 per cent in September 2018, from 2.34 per cent in September 2017, but was marginally lower on a Q-o-Q basis."Significant progress has been achieved in the comprehensive business transformation journey which commenced in 2016.
The journey has been aimed at updating our product capability, improved processes and better relationship management so that the bank is able to adequately serve all segments of customers," the bank said.