Q1FY24
Bank of Baroda Q1FY24 net profit soars 88% YoY to Rs 4,070 crore; NII grows 24%
Public sector lender Bank of Baroda (BOB) on Saturday reported a standalone net profit of Rs 4,070 crore in Q1FY24, up 87.7 year-on-year compared to Rs 2,168 crore in the same quarter of the previous fiscal year.
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.
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