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Bank of Baroda (BoB) on Saturday reported a 28% rise in its net profit to Rs 4,253 crore for Q2 of FY24 on the back of a decline in bad loans and rise in interest income. The state-owned lender had posted a net profit of Rs 3,313 crore in the corresponding quarter of the previous fiscal.

Its total income rose to Rs 32,033 crore in the second quarter of 2023-24, compared to Rs 23,080 crore a year ago, BoB said in a regulatory filing.

The interest income during the quarter increased to Rs 27,862 crore, as compared to Rs 21,254 crore in Q2 FY23. BoB has improved its asset quality, with the gross non-performing assets (NPAs) coming down to 3.32% of the gross advances by the end of September 2023, from 5.31% in Q2 FY23.

Net NPAs fell to 0.76% 1.16% in the same quarter a year ago.

Provisions for bad loans and contingencies rose to Rs 2,161 crore in the quarter from Rs 1,627 crore a year ago. Net interest margins rose to 3.33% at the end of September 2022.

Capital adequacy ratio improved to 15.30% from 15.25% at the end of September 2022.

The bank made headlines earlier this week when its digital lending business head, Akhil Handa, quit, days after the Reserve Bank of India (RBI) barred BoB from onboarding fresh customers on its mobile application, bob World.

RBI had said that the action was based on certain material supervisory concerns observed in the manner of onboarding customers into the application.

The bank appointed Kadgatoor Sheetal Venkateshmurt as the Head of Digital Channels and Operations, and Digital Leading Business.