BoB posts net profit up by 20.81 pc for Q2

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Mumbai, Oct 25 (UNI) Bank of Baroda (BoB) has posted net profit up by 20.81 per cent to Rs 395 crore for second quarter ended September 30 compared to its same period last year.

Announcing its review result, BoB chairman and Managing Director M D Mallya said mediapersons here today that, '' The Bank increased net profit at Rs 766.44 crore for the first half of year 2009, up by 16.43 per cent on year-on-year basis(y-o-y). The growth in net profit was slightly muted due to the ''provisions'' made on account of expected wage revisions and against the write-downs in investments consequent to recent global financial turmoil.

The Bank posted operating profit of Rs 1,705.81 crore in first half of financial year 2009, reflecting a strong growth of 33.1 pc on year-on-year basis. Its operating profit for second quarter, FY 09 at Rs 845.63 crore was also up 32.7 pc on year-on-year basis.

During the first half of financial year, 2009, Interest Income of the Bank was higher by Rs 1,364.59 crore (24.9 pc) and stood at Rs 6,844.80 crore. Interest Earned on Advances grew at a higher pace of 29.5 pc in first half of year 2009, reflecting the Bank's thrust on core operations.

This aspect is further reflected in the growth of 31 pc in the Interest Income from Advances for the Bank during second quarter, FY09. This helped Total Income register a healthy growth of 23.2 pc in first half, FY09 to reach the level of Rs 7,833.26 crore. Net Interest Income too posted a decent growth of 16.2 pc from Rs 1,885.82 crore in first half, FY08 to Rs 2,190.78 crore in first half, 2009. Despite sustained upward pressure on cost of funds, the Bank was able to achieve the Net Interest Margin (NIM) (as per cent of interest-earning assets) of 2.92 pc in its Domestic Operations and 2.77 pc in its Global Operations, Mr Mallya added.

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