MUMBAI, 30 JULY, 2022 (GPN): State Public Sector Lender Bank of Baroda (BoB) reported a 79 per cent year-on-year (YoY) jump in first quarter (Q1FY23) standalone net profit at ₹2,168 crore against ₹1,209 crore in the year-ago period on the back of growth in net interest income and sharp decline in provisions.

Mr Sanjiv Chadha, MD & CEO, BoB said, “The bank had a good beginning in FY23 in terms of having both growth as well as good margins, It has been a reasonably satisfactory quarter for us. More so because we had some headwinds in terms of increase in interest rates, which has obviously impacted the treasury income, with market-to-market implications,”

The Bank’s net interest margin at 3.02 per cent was steady (3.04 per cent in Q1FY21), credit cost was at an all-time low (0.75 per cent), and there was an improvement in credit cycle,he added.

Business Performance

• Global Advances of the Bank increased to INR 8,39,785 crore, +18% YoY.
• Domestic Advances of the Bank increased to INR 6,95,493 crore, +15.7% YoY.
• Global Deposits increased by 10.9% YoY to INR 10,32,714 crore. Domestic Deposits increased by 8.5% YoY to INR 9,09,095 crore in Jun’22.
• Domestic Current Account Deposits stands at INR 63,440 crore, registering a growth of 10% on a YoY basis.
• Domestic Savings Bank Deposits grew by 11.1% to INR 3,38,182 crore. Overall Domestic CASA registered a growth of 10.9% on a YoY basis.
• Organic Retail loan portfolio of the Bank grew by 23.2% led by growth in Personal loan portfolio by 147.1%, Auto loan by 25.6%, Education loan by 20.5%, Home loan by 15.3% on a YoY basis.
• Agriculture loan portfolio grew by 14.4% YoY to INR 1,10,854 crore.
• Organic MSME portfolio grew by 11.1% YoY to INR 96,954 crore.

 

 

 

 

 

Profitability

• Net Interest Income grew by 12% to INR 8,838 crore in Q1FY23. 
• Fee based Income for the quarter increased by 15.6% to INR 1,277 crore.
• Operating Income for Q1FY23 stands at INR 10,020 crore.
• Cost of Deposits reduced to 3.46% in Q1FY23 as against 3.55% in Q1FY22.
• Operating Profit for Q1FY23 stands at INR 4,528 crore.
• Core Operating Profit (ex-Treasury gains/losses and Interest on IT refund) grew by 11% YoY at INR 5,301 Cr in Q1FY23.
• Bank reported a standalone Net Profit of INR 2,168 crore in Q1FY23 as against a profit of INR 1,209 crore in Q1FY22.
• Global NIM stands at 3.02% in Q1FY23.
• Return on Assets (RoA) improved to 0.68% in Q1FY23 from 0.42% in Q1FY22.
• Return on Equity (RoE) increased by 500 bps YoY to 13.63%
• For the consolidated entity, Net Profit stood at INR 1,944 crore in Q1FY23 as against INR 1,187 crore in Q1FY22.

Asset Quality

• The Gross NPA of the Bank reduced to INR 52,591 crore in Q1FY23 from the level of INR 66,671 crore in Q1FY22 and Gross NPA Ratio improved to 6.26% in Q1FY23 from 8.86% in Q1FY22.
• The Net NPA Ratio of the Bank improved to 1.58% in Q1FY23 as compared with 3.03% in Q1FY22.
• The Provision Coverage Ratio of the Bank stood at 89.38% including TWO and 75.94% excluding TWO in Q1FY23.
• Slippage ratio decreased to 1.71% for Q1FY23 as against 3% in Q1FY22.
• Credit cost for the Q1FY23 stands at 0.75%. 

Capital Adequacy

• CRAR of the Bank improved to 15.46% in Jun’22 from 15.40% in Jun’21. Tier-I stood at 12.97% (CET-1 at 11.24%, AT1 at 1.73%) and Tier-II stood at 2.49% as of Jun’22.
• The CRAR and CET-1 of consolidated entity stands at 16.03% and 11.93% respectively.

Business position

Financial result for Quarter ended 30^th June 2022