Bank of Baroda's Q2 profit soars 28.3% because to improved earnings and asset quality

 Bank of Baroda's Q2 profit soars 28.3% because to improved earnings and asset quality

Bank of Baroda's Q2 earnings: A year earlier, BoB had a net profit of Rs 3,313.42 crore.

On November 4, public sector lender Bank of Baroda (BoB) announced a net profit of Rs 4,252.89 crore for the third quarter of 2023–24, an increase of 28.3% over the same period in 2018. This increase was driven by better asset quality and robust core revenue growth.

Gross non-performing assets (GNPAs) for the firm decreased from 5.31 percent of the loan book to 3.32 percent this year. Bad loans made up 0.76 percent of the loan book on a net basis, compared to 1.16 percent during the same quarter in the previous fiscal year.

At Rs 10,831 crore, banks' Net Interest Income (NII) has increased by more than 6.4 percent year over year from Rs 10,174 crore.

BOB provisions increase by 11% (quarter over quarter) to Rs 2,161 crore from Rs 1,974 crore.

The public sector lender has had a difficult few months after being charged with grave irregularities in the onboarding of users to its BoB World app. According to media sources, the bank altered customer accounts and connected the contact information of several individuals in order to boost the quantity of mobile application registrations.

The Reserve Bank of India prohibited the bank from onboarding new users on the World app on October 10.

Several staff provided their phone numbers for registration and deregistration on the World application without the clients' permission, according to an internal investigation.

After an internal examination, the bank suspended over 60 workers, including 11 assistant general managers. A week later, Moneycontrol was the first to reveal this news. Akhil Handa, the bank's director of digital lending, also left recently.