Bank of Baroda holds its position at Dalal street

Shares of Bank of Baroda, 58 percent controlled by the Government of India, remained upbeat after the PSU lender managed to rein in an escalating sector-wide problem of non performing assets and report an in-line set of numbers for the first quarter.

Bank of Baroda said its first quarter Net Profit fell 23 percent to 1,052 crore rupees compared with 1,362 crore rupees in the same quarter a year ago. Net Interest Income during April-June gained 4 percent to 3,460 crore rupees from 3,328 crore rupees in the year ago period. The numbers were in line with street's expectations in contrast to other banks where PAT and NII have fallen sharply versus forecasts.

The bank's Gross Non Performing Assets rose to 4.13 percent versus 3.27 percent in the past sequential quarter. Similarly, the Net NPAs rose to 2.07 percent in the first quarter compared with 1.89 percent in the fourth quarter, the bank said in a statement to the exchanges.

Bank of Baroda's Futures were the top gainers in the derivatives market with Open Interest rising 23 percent and the counter showing a heavy build up of long positions. They were up 4 rupees, or 2.6 percent, at 157 rupees. Nearly 95 lakh Bank of Baroda shares changed hands in the first two hours of trade on the NSE compared with a 5-day average of 45 lakh shares.

Bank of Baroda's market capitalisation has slipped 12 percent in the past one year to 34,700 crore rupees as investors dumped PSU banking stocks on the back of the rising sectoral NPA problem and a critical slowdown in the main industrial sectors of Infrastructure, steel, power and construction.

(Image credits: Indiatimes)