For FY14, Bank of Baroda reported marginal increase in its net profit at Rs4,541 crore affected by higher expenses and tax provisions
Bank of Baroda (BOB), the public sector lender reported a marginal increase in its full year net profit even as its expenses and tax provisions increased.
For the 12 month to end-March, BOB said its net profit increased 1.3% to Rs4,541 crore from Rs4,481 crore, while its total revenues, including interest income, grew 11.8% to Rs43,402 crore from Rs38,827 crore, a year ago period.
During FY14, the public sector lender said its NII increased 5.7% to Rs11,965 crore from Rs11,315 crore of FY13. Its non-interest income (other income) grew 22.9% to Rs4,463 crore from Rs3,631 crore in FY13.
BOB's total FY14 expenses grew 14.4% to Rs34,049 crore from Rs29,754 crore, while its staff expenses and operating expenses increased 20% to Rs4,110 crore and Rs7,075 crore respectively.
During FY14, BOB has made 172.8% higher tax provisions of Rs956.23 crore. It said, “tax provisions increased this year due to some changes in the income tax law and the Reserve Bank of India's directive to create a deferred tax liability out of the current year's profit on special reserve.”
However, the lender said it has made 9% less other than tax provisions of Rs3,794 crore on account of lower incidence of fresh slippages and lesser technical write-offs.
As on 31 March 2014, total advances of BOB increased 21% to Rs3.97 lakh crore. BOB's total deposits during the year increased 20.1% to Rs5.69 lakh crore. BOB's total current account saving account (CASA) grew 22.1% to Rs1.46 lakh crore. Its retail credit grew 21% to Rs46,019 crore and MSME loan book increased 21% to 56,634 crore as on 31 March 2014.
As on 31 March 2014, BOB's capital adequacy ratio (CAR) stood at 12.28%, gross non performing assets ratio (GNPAs) stood at 2.94% (Rs11,876 crore) from 2.40% (Rs7,982.58 crore). Its net non-performing assets (NNPA) stood at 1.52% (Rs6,035 crore) from 1.28% (Rs4,192 crore). While its non performing loan provisioning coverage ratio stood at 65.45%.
BOB said during the year it has sold NPAs with net book value of Rs253.64 crore (outstanding-provisions) to Assets reconstruction companies on cash and security receipt basis in accordance with RBI guidelines.
For the quarter to end-March, BOB said its net profit grew 12.5% to Rs1,157 crore from Rs1,029 crore, while its total revenues including interest income grew 13.2% to Rs11,615 crore from Rs10,262 crore, same period last year.
BOB declared a final dividend of Rs10.50 per share.
At 3pm Wednesday, Bank of Baroda was trading 8.7% higher at Rs954 on the BSE, while the 30-share Sensex was flat at 23,854.
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