New Delhi, July 25 (NVI) Government-owned Bank of Baroda (BoB) has reported a 72 per cent year-on-year fall in standalone net profit to Rs 1,278 crore for the June quarter of the current financial year.
The impact is mainly due to an exceptional charge of around Rs 5,680 crore following its $600 million out-of-court settlement of litigation involving the collapsed UAE-based healthcare group NMC Health.
Despite the hit, the lender reported healthy business growth during the quarter.
The bank’s net interest income (NII) rose 9.5 per cent year-on-year to Rs 12,525 crore, supported by robust credit expansion, while interest income increased 6.8 per cent to Rs 33,211 crore.
The bank’s loan book continued to expand, driven by strong momentum across retail and other key segments, underscoring the resilience of its core banking operations.
The bank maintained stable asset quality, with its gross non-performing asset (GNPA) ratio standing at 1.99 per cent at the end of June, compared with 1.89 per cent in the previous quarter, reflecting only a marginal increase.
The lender also reported lower provisions excluding the exceptional item.
Managing Director and Chief Executive Officer Debadatta Chand said the decision to settle the long-running NMC Health litigation was driven by commercial considerations and the advanced stage of the legal proceedings, rather than any change in the bank’s legal position.
He added that the settlement removes a prolonged legal overhang and allows the bank to focus on its growth strategy while maintaining its business guidance for FY27. (NVI)
