Bank of Baroda has recorded a 12.53% increase in its net profit, which stood at Rs 276 crore for the three-month period ended March 31, 2008, as compared to Rs 245 crore during the corresponding period of the last year.

The performance of the bank got a fillip from reduced prime lending rates and volatile equity and government bond markets.

The bank’s total income for the quarter ascended 26.5% at Rs 3,885.7 crore, whereas the net interest income during the same period remained flat at Rs 1,028.5 crore, as against Rs 1,053 crore during the corresponding period of the last year.

Other income that comprise commissions and fees, climbed 23.56 per cent to Rs 554.63 crore, and the treasury income increased to Rs 81 crore from Rs 27 crore in the fourth quarter of 2007-08.

During the same period (Q4), BoB saw a growth of 29.95% in its interest income from advances. Cash recovery on return of account for the fourth quarter stood at Rs 113.21 crore from Rs 89.43 crore.

For the fourth quarter, the bank has made total provision, including tax pro-vision, of Rs 538.01 crore against Rs 498.33 crore in the previous year, which is a rise of 39.85%.
 
In the fourth quarter the bank also made a provision of Rs 50 crore for marked-to-market losses due to its exposure to overseas Credit Linked Notes. This provision was made from the net profit of the bank’s overseas operations,

Deposits rose by 21.7 per cent to Rs 1,52,034 crore.

M D Mallya, BoB chairman and managing director said, “The net interest income has been almost flat in the fourth quarter as there was a reduction in PLR. Therefore, we hope to moderate the overall yield and costs.”

For the year ended March 2008, the company has recommended a dividend of 80%, as against 60% in 2006-2007.

The bank will renegotiate the interest rate for loans, which have been extended at rates below PLR.