BoB suffers 10% quarterly profit drop
2 Nov 2013 4:46 AM IST
However, total business picked up by 17 per cent y-o-y to Rs 8,24,786 crore at September-end, 2013.
Bank of Baroda CMD S S Mundra said that despite further worsening of the industrial and inflation scenario, the bank protected its net profit in Q2, FY14 at Rs 1,168.10 crore – the same level as in Q1, FY14. However, the bank’s operating profit in Q2, FY14 stood at Rs 2,124.58 crore, reflecting a decline of 10.8 per cent y-o-y. On y-o-y basis, total deposits increased by 18.8 per cent to Rs 4,84,931 crore at September-end 2013 from Rs 4,08,150 crore at September-end 2012, while total advances increased by 16.3 per cent to Rs 3,39,855 crore at Q2 of this fiscal from Rs 2,92,181 crore against the same period of last fiscal.
Farm credit was down by 2.12 per cent at Rs 26,101 crore by September-end 2013 and the negative growth in farm credit was attributed to revised classification guidelines of the RBI, following which finance given to agro-processing units is getting covered under MSME segment rather than under Indirect Agriculture. A significant increase was noted in operating expenses of 33.3 per cent to Rs 1,744.07 crore in Q2, FY14 due to the increase of 37.1 per cent y-o-y in employee costs from provisions against wage revisions, AS-15 benefits, dearness allowance adjustment on account of high retail (CPI) inflation.
Bank of Baroda CMD S S Mundra said that despite further worsening of the industrial and inflation scenario, the bank protected its net profit in Q2, FY14 at Rs 1,168.10 crore – the same level as in Q1, FY14. However, the bank’s operating profit in Q2, FY14 stood at Rs 2,124.58 crore, reflecting a decline of 10.8 per cent y-o-y. On y-o-y basis, total deposits increased by 18.8 per cent to Rs 4,84,931 crore at September-end 2013 from Rs 4,08,150 crore at September-end 2012, while total advances increased by 16.3 per cent to Rs 3,39,855 crore at Q2 of this fiscal from Rs 2,92,181 crore against the same period of last fiscal.
Farm credit was down by 2.12 per cent at Rs 26,101 crore by September-end 2013 and the negative growth in farm credit was attributed to revised classification guidelines of the RBI, following which finance given to agro-processing units is getting covered under MSME segment rather than under Indirect Agriculture. A significant increase was noted in operating expenses of 33.3 per cent to Rs 1,744.07 crore in Q2, FY14 due to the increase of 37.1 per cent y-o-y in employee costs from provisions against wage revisions, AS-15 benefits, dearness allowance adjustment on account of high retail (CPI) inflation.
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