Bank of Baroda share price surged by 9 per cent to hit an intraday high of Rs 55 a day after the bank swung back to profit and its asset quality improves in January-March period. Bank of Baroda after market hours reported a profit of Rs 507 crore in quarter ended March 2020 as against a loss of Rs 1,406.95 crore in December quarter and a loss of Rs 991.37 crore during the same quarter last year. Bank of Baroda results comprise earnings of Dena Bank and Vijaya Bank which were merged into Bank of Baroda in April last year, the government-owned lender said in an exchange notification.
Bank of Baroda’s asset quality improved in March quarter as its gross non-performing assets (NPAs) as a percentage of total advances came in at 9.40 per cent compared with 10.43 per cent in the previous quarter.
Its gross NPAs stood at Rs 69,381.43 crore as against Rs 73,139.70 crore in the previous quarter.
Net NPAs also saw an improvement as it came in at 3.13 per cent versus 4.06 per cent in December quarter.
Bank of Baroda’s net interest income or the difference between interest earned from advances and interest paid on deposits rose 40 per cent to Rs 6,798 crore from Rs 4,863.46 crore during the same quarter last year.
Operating profit for Q4FY20 increased to Rs 5,121 crore, an increase of 47.9 per cent due to 23.2 per cent decline in operating expenses, Bank of Baroda said in an investor presentation.
As of 12:17 pm, Bank of Baroda was trading 5 per cent higher at Rs 52.95, outperforming the Sensex which was trading on a flat note.