Mumbai: Bank of Baroda announced a whopping 68.1 percent fall in net profit at Rs 334 crore in the December quarter on account of higher provisioning for non-performing assets and taxes.
The state-run city-based bank’s profit after tax stood at Rs 1,048 crore in the same period last year. The bank had to make higher provisioning on taxes as the Dubai government levied retrospective tax on its UAE branch, he added.
Bank Executive Director Ranjan Dhawan told reporters here, “The decline in net profit was mainly contributed by increased provisions for NPAs at Rs 331 crore and higher tax provision of Rs 375 crore during the quarter.”
Dhawan explained, “There was an opening of the tax assessments from 2007 onwards and the Dubai tax authorities have decided to levy tax retrospectively on us. So, we have made this one-off provision this year.” Net interest margin fell to 2.92 percent from 2.95 percent.
