Bank of Baroda Q1FY24 net profit soars 88% YoY to Rs 4,070 crore; NII grows 24%

One of the key highlights of BOB's Q1FY24 results is the growth in Net Interest Income (NII), which surged by 24% year-on-year to Rs 10,997 crore.

The bank's Global Net Interest Margin (NIM) stood at 3.27% in Q1FY24, marking an increase of 25 basis points compared to the same period last year.

Similarly, the Domestic NIM reached 3.41%, reflecting a significant 34 basis points YoY growth.

The Yield on Advances saw an improvement, rising to 8.40% in Q1FY24 from 6.58% in Q1FY23. On the other hand, the Cost of Deposits increased to 4.68% in Q1FY24 from 3.46% in Q1FY23.

BOB's operating income for Q1FY24 reached Rs 14,319 crore, demonstrating a robust growth of 42.9% YoY. The operating profit for the same period stood at Rs 7,824 crore, showcasing an impressive increase of 72.8% compared to the previous year.

The bank's cost-to-income ratio registered a significant improvement, reducing to 45.36% in Q1FY24 from 54.81% in Q1FY23. Excluding treasury operations, the cost-to-income ratio dropped by 168 basis points YoY to 47.41% in Q1FY24.

BOB's Return on Assets (annualized) improved to 1.11% in Q1FY24 from 0.68% in Q1FY23. Additionally, Return on Equity (annualized) for Q1FY24 surged by 640 basis points YoY, reaching an impressive 20.03%.

For the consolidated entity, BOB reported a net profit of Rs 4,452 crore in Q1FY24, displaying a substantial increase compared to Rs 1,944 crore in the same quarter of the previous fiscal year. The Gross NPA of the Bank reduced by 33.8% YoY to Rs 34,832 crore in Q1FY24 and

Gross NPA Ratio improved to 3.51% in Q1FY24 from 6.26% in Q1FY23.

The Net NPA Ratio of the Bank stands at a record low of 0.78% in Q1FY24 as compared with 1.58% in Q1FY23.

The Provision Coverage Ratio of the Bank stood at 93.23% including TWO and 78.52%

excluding TWO in Q1FY24.

Slippage ratio declined to 1.05% for Q1FY24 as against 1.71% in Q1FY23.

Credit cost for the Q1FY24 stands at 0.70%. Excluding prudential provisions credit cost would have been 44 bps in Q1FY24.

BOB's Capital Adequacy Ratio (CRAR) stood at a robust 15.84% as of June 2023. In terms of tiers, Tier-I capital ratio was at 13.64%, with Common Equity Tier-1 (CET-1) at 11.94% and Additional Tier-1 (AT1) at 1.70%.

Tier-II capital ratio stood at 2.20% as of June 2023. For the consolidated entity, CRAR was at 16.31%, with CET-1 at 12.51%.

The Liquidity Coverage Ratio (LCR) for the consolidated entity stood strong at 143.6%.

Global Advances surged to Rs 9,90,988 crore, marking an impressive 18.0% YoY increase.

Domestic Advances also witnessed substantial growth, reaching Rs 8,12,626 crore, an increase of 16.8% YoY.

Global Deposits saw a rise of 16.2% YoY, reaching Rs 11,99,908 crore.

Domestic Deposits followed suit, growing by 15.5% YoY to Rs 10,50,306 crore as of June 2023.

International Deposits exhibited strong growth, increasing by 21.0% YoY to Rs 1,49,602 crore.

Domestic Current Account and Savings Account (CASA) deposits registered a steady growth of 5.5% YoY, amounting to Rs 4,23,600 crore.

BOB's organic retail advances displayed impressive growth, with significant expansion in key sectors:

Auto Loans witnessed a growth of 22.1%.

Home Loans experienced an increase of 18.4%.

Personal Loans demonstrated a remarkable growth of 82.9%.

Mortgage Loans grew by 15.8%.

Education Loans saw a growth of 20.8% YoY.

The agriculture loan portfolio expanded by 15.1% YoY, reaching Rs 1,27,583 crore.

The total gold loan portfolio, including retail and agricultural segments, reached Rs 40,652 crore, indicating a substantial growth of 32.1% YoY.

BOB's organic MSME portfolio expanded by 12.7% YoY, amounting to Rs 1,09,220 crore.