Bank of Baroda Reports 6.19% Growth in Q1 Net Profit

Bank of Baroda reported a 6.19% growth in consolidated net profit for the June quarter. On a standalone basis, the state-run lender's profit grew by 9.5%. Core net interest income grew by 5.5%, while other income declined by 25%. Despite some setbacks, the bank remains optimistic about future growth.

Bank of Baroda on Wednesday reported a 6.19% growth in consolidated net profit for the June quarter, amounting to Rs 4,727.81 crore. The state-run lender cited calibrated loan growth as a contributing factor.

On a standalone basis, the public sector bank's net profit increased by 9.5% to Rs 4,458 crore. Core net interest income surged by 5.5% despite a lower advance growth of 8.1% and a slight reduction in the net interest margin to 3.18%. Deposits grew by 8.9% overall.

However, other income saw a decline of 25% to Rs 2,487 crore, heavily impacted by a 74% drop in treasury operations. CEO and Managing Director D Chand expressed confidence that the bank will recover from the shortfall in the next quarter, aiming for deposit growth of 10-12% and credit growth of 12-14%.