Mumbai: Bank of Baroda on Friday reported net profit that more than tripled to Rs552.12 crore in the September quarter, helped by lower provisions against bad loans, a fall in expenses and higher non-interest income.

The state-owned lender had posted a net profit of Rs124.48 crore in the year-ago quarter.

Net interest income (NII), or the difference between interest earned on loans and that paid on deposits, rose 5.6% year-on-year to Rs3,426 crore. Non-interest income, which includes fees and commissions, rose 36.5% to Rs1,561.43 crore year-on-year.

The lender’s total expenditure fell 6% from a year earlier to Rs9,356.40 crore.

Total advances fell to Rs3.54 trillion as of 30 September, from Rs4.14 trillion a year ago. The fall in advances crimped interest income, but a decline in high-cost deposits and a falling interest rate regime balanced it out.

Total deposits at the end of the second quarter amounted to Rs5.67 trillion, lower than the Rs6.1 trillion a year ago.

The net interest margin (NIM) for domestic operations improved to 2.85% from 2.80%, while global margins improved to 2.29% from 2.23%, the bank said.

Bank of Baroda set aside Rs1,630.45 crore to cover the risk of default on bad loans, down 11.6% year-on-year and a fall of 18% on a quarter-on-quarter basis. The provision coverage ratio was 62.95% in the July-September period, compared with 60.17% in the quarter to June.

Gross non-performing assets (NPAs) of the bank fell marginally to Rs42,949.25 crore from Rs42,991.68 crore in the June quarter. As a share of total assets, though, gross NPAs rose to 11.35% from 11.15% in the same period.

The net NPA ratio fell to 5.46% during the September quarter from 5.73% in the April-June period.

Bank of Baroda approved strategic debt restructuring (SDR) proposals worth Rs2,370 crore and made provisions worth Rs118.50 crore during the quarter.

The bank’s capital adequacy ratio during the quarter rose to 12.94% as of 30 September, higher than the 12.51% it reported a year ago.

Bank of Baroda shares closed at Rs160.70 on Friday on the BSE, down 2.49% from the previous close.

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