Finance1 min read

Bank of Baroda's Q2 profit surges 36% YoY on NSE stake sale

By · Published by Everything Blog

In short

The lender achieved a substantial quarterly profit rise to ₹6,532 crore, up from ₹4,809 crore reported in the prior year. Strong performance was bolstered by a doubling of non-interest income and a 48% jump in recoveries from written-off accounts. Meanwhile, net interest income managed to climb by 9% to ₹13,026 crore despite an overall narrowing of margins.

Key points

  • Non-interest earnings and strategic asset monetisation served as the primary drivers of b…: Non-interest earnings and strategic asset monetisation served as the primary drivers of bottom-line growth.
  • Core lending revenue grew to ₹13,026 crore even as net interest margins faced downward pr…: Core lending revenue grew to ₹13,026 crore even as net interest margins faced downward pressure.
  • Recoveries from previously written-off accounts surged by 48%, mitigating a 9% contractio…: Recoveries from previously written-off accounts surged by 48%, mitigating a 9% contraction in fee-based income.

Sources checked by our analysis pipeline: 1

The lender's September-quarter net profit increased to ₹6,532 crore from ₹4,809 crore a year ago, mainly because of a near doubling of non-interest income to ₹6,881 crore from ₹3,515 crore in the year-ago quarter. The bank earned ₹1,340 crore from the partial sale of its stake in NSE.

The gains from the NSE stake, along with a 48% jump in recovery from written-off accounts, made up for a 9% drop in fee base income during the year. A 9% increase in net interest income (NII) to Rs 13,026 crore also supported profits. Net interest margin dropped to 2.74% from 2.96% a year ago.

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