The Hindu Business Line : Higher lending offsets hit from Treasury operations<br> Bank of Baroda Q2 net rises 21 pc

Corporate Results - Public Sector Banks
Money & Banking - Financial Performance

Higher lending offsets hit from Treasury operations
Bank of Baroda Q2 net rises 21 pc

Our Bureau

Mumbai , Oct. 28

Bank of Baroda's net profit has increased 21.45 per cent to touch Rs 259.07 crore in the quarter ended September 30, against Rs 213.31 crore in the corresponding period of the previous year, due to increase in lending. However, other income decreased due to lower profits from sale of investments.

The total income was Rs 2,003.59 crore (Rs 1,907.61 crore). Net interest income increased to Rs 781.86 crore (Rs 688.29 crore). Other income decreased to Rs 309.55 crore (Rs 359.47 crore). Total expenditure was at Rs 1,508.27 crore (Rs 1,357.70 crore).

Capital adequacy ratio was at 12.79 per cent (11.99 per cent). The ratio of net non-performing assets to total assets declined to 1.13 per cent (2.27 per cent).

For the six-month period ended September 30, 2005, the bank reported a net profit of Rs 416.01 crore, down 17.83 per cent from Rs 506.30 crore, due to lower profits from sale of investments.

Net interest income rose to Rs 1,540.46 crore (Rs 1,371.33 crore). Other income fell to Rs 518.32 crore (Rs 754.06 crore).

Total deposits inched up by 9.59 per cent to Rs 86,171.71 crore from Rs 78,633.91 crore. Total advances increased by 30.87 per cent to Rs 48,952.32 crore from Rs 37,403.92 crore.

BoB opened a branch in Leicester, UK, and a representative office in Bangkok, in August 2005.

The bank is awaiting permission for opening branches include Houston in US, Hong Kong, Maldives and Bangladesh. It has also got RBI approval for fully owned subsidiaries in Canada, Trinidad and Tobago, New Zealand and Sri Lanka.

Bank of Baroda is planning a second public issue of over 7 crore equity shares to raise around Rs 1,500 crore. The bank filed the prospects with the Securities and Exchange board of India on October 6.

Shares of the bank ended the day at Rs 211.95 on the BSE, 2.24 per cent lower than the earlier close of Rs 216.80.

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