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Bank of Baroda (BoB) Reports Robust Second Quarter Performance

Bank of Baroda (BoB) recently announced its financial results for the second quarter ending in September, showcasing a substantial 28% increase in net profit, reaching Rs 4,253 crore. This remarkable growth can be attributed to reduced bad loans and an upsurge in interest income.

The state-owned institution’s net profit for the same period in the previous fiscal year was Rs 3,313 crore. BoB also disclosed that its total income for the second quarter of 2023-24 surged to Rs 32,033 crore, compared to Rs 23,080 crore a year earlier, as reported in a regulatory filing.

Notably, the interest income in this quarter escalated to Rs 27,862 crore, compared to Rs 21,254 crore in the corresponding quarter of the previous year. Net interest income (NIl) experienced a 6.5% growth, reaching Rs 10,831 crore in Q2 FY24.

Furthermore, the bank’s operating profit showed a significant 33% increase, amounting to Rs 8,020 crore, compared to the same quarter in the previous year.

In terms of asset quality, BoB made substantial improvements, with gross non-performing assets (NPAs) dropping to 3.32% of gross advances by the end of September, down from 5.31% in the same period a year ago. Net NPAs also saw a decline, falling to 0.76% from 1.16% during the same quarter in the previous year.

BoB Reports 28% Profit

Bank of Baroda (BoB) disclosed that the departure of the digital head, Akhil Handa, had an insignificant and immaterial financial impact on the institution. The decision to terminate Handa’s services was made as part of actions taken following regulatory measures imposed by the RBI. This action followed the RBI’s directive on October 10, instructing BoB to cease onboarding new customers on its mobile application ‘bob World’ with immediate effect.

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