Bank of Baroda Q1 profit plunges 72 pc to Rs 1,278 crore on one-time loss; NII grows 9.5 pc

Mumbai, July 24 (IANS) State-owned Bank of Baroda on Friday reported a sharp 71.9 per cent decline in its net profit for the April-June quarter (Q1 FY27), as a substantial one-time loss of Rs 5,680 crore weighed heavily on its bottom line despite healthy growth in net interest income and interest earnings.

The public sector lender posted a net profit of Rs 1,278 crore for the quarter ended June, compared with Rs 4,541 crore in the corresponding quarter of the previous financial year (Q1 FY26), according to its stock exchange filing.

The sharp fall in profitability was primarily attributed to the one-time loss recognised during the quarter.

However, the bank’s core operating performance remained resilient, with net interest income (NII) rising 9.5 per cent year-on-year to Rs 12,525 crore from Rs 11,435 crore, supported by steady growth in its lending business.

Interest income also registered healthy growth, increasing 6.8 per cent year-on-year to Rs 33,211 crore from Rs 31,091 crore in the year-ago period.

Operating profit before provisions and tax stood at Rs 8,127 crore during the quarter, marginally lower than Rs 8,236 crore reported a year earlier.

The bank’s asset quality weakened slightly on a sequential basis. Gross non-performing assets (GNPA) rose to 1.99 per cent at the end of June from 1.89 per cent at the end of March, while net non-performing assets (NNPA) increased to 0.50 per cent from 0.45 per cent in the previous quarter.

Despite the one-time loss, the bank reported a sharp decline in provisions. Total provisions fell to Rs 643 crore during the quarter from Rs 3,150 crore in the preceding quarter and Rs 1,967 crore in the corresponding quarter last year, as per its filing.

The lower provisioning requirement points to an improvement in the bank’s underlying credit costs, even though asset quality witnessed a marginal deterioration during the quarter.

–IANS

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