Bank of Baroda July-Sept net profit up 60.7%

Bank of Baroda July-Sept net profit up 60.7%

Mumbai: State-run Bank of Baroda’s net profit rose 60.7% on year in July-September supported by a strong growth in net interest income (NII) and core fee-based income.

The lender on Thursday reported a net profit of Rs1,020 crore on a total income of Rs5,840 crore in July-September.

“The profit has been largely driven by increasing core business activities...," chairman and managing director M.D. Mallya, told reporters.

The bank’s NII rose 46.8% during the quarter to Rs2,038 crore on year, he added.

The lender expects 23-24% rise in advances in FY11, he said.

The bank plans to open 400 more branches in India, taking its total number of 3,500. It is also planning to add three branches overseas, in addition to the two already opened this year, he said.

Chief economist Rupa Rege Nitsure said, “We expect to maintain domestic net interest margin at 3.62% and global net interest margin at 3.02% in FY11."

Shares of the bank closed at Rs1,010.80, up 2.07% on the BSE.