THE Bank of Baroda (BoB) operating profit increased handsomely, thanks to interest income and reversal of provision made against impairment losses on loans and advances, the bank said on Thursday.
BoB said in a press statement that its profit increased by 124 per cent to 3.35bn/- at the quarter ending last December compared to 1.49bn/- realised during a similar period in 2011. The bank attributed the good profit in the last year's fourth quarter to increased interest income and reversal of provision made against impairment losses on loans and advances.
During the period, the bank that made a come back nine years ago after it was nationalised in 1967, earned a net profit of 2.43bn/- in three months ending December 2012 as against 1.83bn/- December 2011. According to a financial statement published, Bank's interest income increased to 2.82bn/- by last December, from 1.99bn/- during the corresponding period last year.
BoB's interest expenses doubled during the quarter under review up to 1.03bn/- from 573m/- due to increase in cost of deposits. Non interest expenses, on other hand, marginally increased from 609m/- to 696m/-. At the close of the year, its gross non-performing loans decreased from 4.83 per cent to 0.25 per cent, well below the industrial benchmark of 5 per cent.
In quarter to quarter, the bank's advances increased by 19.51 per cent to 56.87bn/- and total assets increased by 3.33 per cent to 125.61bn/- while deposits also went up by 1.71 per cent to 91.59bn/- from 90.05bn/- in September 2012. However, the level of loans and advances to total deposits at the end of last year stood at 62.13 per cent.
The BoB said in the statement. BOB was incorporated in Tanzania in 2004, and started its operations in Dar es Salaam from October 2004. It has planned to increase the number of branches from two to four during the current year.The Bank is wholly owned subsidiary of Bank of Baroda, a premier national bank in India having network in 26 countries in all the continents.