State-owned Bank of Baroda (BoB) on Saturday reported a 79% increase in its net profit of Rs 2,168 crore for the first quarter of the current financial year, helped by a decline in bad debts.

The lender had made a standalone profit of Rs 1,208 crore in the prior year period.

Its total revenue in the first quarter of the current financial year increased to Rs 20,119.52 crore from Rs 19,915.83 crore, according to a regulatory filing.

Interest income from the lender also rose to Rs 18,937.49 crore from Rs 17,052.64 crore a year ago.

Non-interest income in the first quarter of FY22 improved by 12% to Rs 8,838 crore, boosted by commission income which increased by 15%.

However, operating profit for the quarter declined by 19% to Rs 4,528 crore from Rs 5,707 crore a year ago.

On the asset quality front, the lender’s gross non-performing assets (NPA) improved in the June quarter to 6.26% from 8.86% a year ago.

In absolute terms, gross NPA or bad debts decreased to Rs 52,590.83 crore at the end of the first quarter of FY23 from Rs 63,028.78 crore a year earlier.

Net NPA also fell to 1.58 from 3.03% a year ago.

As a result, non-tax provisions and bad debt contingencies decreased to Rs 1,684.80 crore in the April to June 23 financial year from Rs 4,005.40 crore a year ago.

In June this year, the provision coverage ratio stood at 89.38%, while the net interest margin was stable at 3.02%.

The domestic advances of the bank increased to Rs 6,95,493 crore, registering a growth of 15.7%.

The capital adequacy ratio (CAR) at the end of the quarter stood at 15.46% with the CET-1 at 12.97% on an individual basis.

The bank’s organic personal loan portfolio grew 23.2%, driven by growth in the personal loan portfolio of 147.1%, auto loans of 25.6%, education loans of 20 .5% and real estate loans of 15.3% on an annual basis. , it said.