Shares of Bank of Baroda that were trading flat on Friday sank sharply after the bank posted its earnings for the March quarter. The shares are trading lower as slippages rose 20.8% quarter-on-quarter to ₹2,855 crore.
What Happened: The lender reported a net profit of ₹4,886 crore for the January-March period, a slight increase of 2.3% compared to the net profit of ₹4,775 crore recorded in the same period of the previous fiscal year.
Net interest income (NII) for the March quarter increased by 2.3% to ₹11,793 crore from ₹11,525 crore reported in the same period of the previous year. Net interest margin for the quarter contracted to 3.27% from 3.53% posted in the same quarter last year. The bank has recommended a dividend of ₹7.60 per equity share.
See Also: Cipla Q4 Results: Net Profit Climbs 79% To ₹525.65 Cr, But Shares Slide
The bank’s gross non-performing asset (NPA) ratio improved to 2.92%, from 3.79% in the corresponding quarter of the previous year, indicating a reduction in troubled assets. Additionally, the net NPA ratio for the quarter decreased to 0.68% compared to 0.89% reported a year ago, reflecting improved asset quality metrics.
Price Action: Bank of Baroda’s share price was down 3.88% to trade at ₹252.45 just before market close on Friday.
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