Bank of Baroda's Q2 profit surges 36% YoY on NSE stake sale
In a remarkable financial performance, Bank of Baroda reported a staggering 36% rise in net profit for the second quarter, reaching ₹6,532 crore. This surge was propelled by significant non-interest income, recoveries from previously written-off accounts, and gains from the partial sale of its stake in the National Stock Exchange.
Bank of Baroda (BoB) on Friday reported a 36% year-on-year rise in second-quarter net profit, driven by one-time gains from the partial sale of its stake in the National Stock Exchange (NSE), which boosted other income. The bank also raised its estimates for credit and deposit growth for the current fiscal year.The lender's September-quarter net profit increased to ₹6,532 crore from ₹4,809 crore a year ago, mainly because of a near doubling of non-interest income to ₹6,881 crore from ₹3,515 crore in the year-ago quarter.
The bank earned ₹1,340 crore from the partial sale of its stake in NSE.The gains from the NSE stake, along with a 48% jump in recovery from written-off accounts, made up for a 9% drop in fee base income during the year. A 9% increase in net interest income (NII) to Rs 13,026 crore also supported profits. Net interest margin dropped to 2.74% from 2.96% a year ago.(You can now subscribe to our ETMarkets WhatsApp channel)
