MUMBAI, 31st JANUARY, 2024 (GPN): Bank of Baroda announces Financial Results for the Quarter ended 31st December 2023
Key Highlights
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Profitability
- BOB reported a standalone Net Profit of INR 4,579 crore in Q3FY24 as against a profit of INR 3,853 crore in Q3FY23. Net Profit for 9MFY24 stands at INR 12,902 crore (+38.2% YoY) as against INR 9,334 crore in 9MFY23.
- Net Interest Income (NII) grew by 2.6% YoY to INR 11,101 crore in Q3FY24. NII for 9MFY24 registered a growth of 10.4% and stands at INR 32,929 crore.
- Non-Interest Income for 9MFY24 stands at INR 10,304 crore up by 57.1% YoY
- Global NIM improves by 3 bps sequentially and stands at 3.10% in Q3FY24. Global NIM for 9MFY24 stands at 3.14%.
- Yield on Advances increased to 8.51% in Q3FY24 as against 7.78% in Q3FY23.
- Cost of Deposits increased to 4.96% in Q3FY24 as against 4.01% in Q3FY23.
- Operating Income for Q3FY24 stands at INR 13,912 crore. Operating Income for 9MFY24 stands at INR 43,233 crore registering a growth of 18.8%.
- Operating Profit for Q3FY24 stands at INR 7,015 crore. (Excluding impact of MTM, quarterly Operating Profit would have been INR 7,482 crore for Q3FY23 and INR 7,307 crore for Q3FY24)
- Operating Profit for 9MFY24 increased by 21.7% to INR 22,859 crore.
- Cost to Income ratio stands at 49.57% for Q3FY24.
- Return on Assets (annualised) improved to 1.20% in Q3FY24 from 1.13% in Q3FY23.
- Return on Equity (annualised) for Q3FY24 stands at 19.91%. RoE increased by 168 bps YoY to 18.70% for 9MFY24
- For the consolidated entity, Net Profit stood at INR 4,789 crore in Q3FY24 as against INR 4,306 crore in Q3FY23.
Asset Quality
- The Gross NPA of the Bank reduced by 22.8% YoY to INR 32,318 crore in Q3FY24 and Gross NPA Ratio improved to 3.08% in Q3FY24 from 4.53% in Q3FY23.
- The Net NPA Ratio of the Bank stands at a low 0.70% in Q3FY24 as compared with 0.99% in Q3FY23.
- The Provision Coverage Ratio of the Bank stood at 93.39% including TWO and 77.70% excluding TWO in Q3FY24.
- Slippage ratio declined to 1.06% for 9MFY24 as against 1.22% in 9MFY23. Slippage ratio for the quarter is below 1% at 0.95% for Q3FY24 as against 1.05% in Q3FY23.
- Credit cost stands at 0.39% for Q3FY24 and 0.69% for 9MFY24.
Capital Adequacy
- CRAR of the Bank stands at 14.72% in Dec’23. Tier-I stood at 12.67% (CET-1 at 11.11%, AT1 at 1.56%) and Tier-II stood at 2.05% as of Dec’23.
- The CRAR and CET-1 of consolidated entity stands at 15.14% and 11.62% respectively
- The Liquidity Coverage Ratio (LCR) consolidated stands at 133%.
Business Performance
- Global Advances of the Bank increased to INR 10,49,327 crore, +13.6% YoY.
- Domestic Advances of the Bank increased to INR 8,62,086 crore, +13.4% YoY.
- Global Deposits increased by 8.3% YoY to INR 12,45,300 crore.
- Domestic Deposits increased by 6.3% YoY to INR 10,67,371 crore in Dec’23.
- International Deposits grew by 22.1% on a YoY basis to INR 1,77,929 crore in Dec’23.
- Organic Retail Advances grew by 22%, led by growth in high focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), Education Loan (18.3%) on a YoY basis.
- Agriculture loan portfolio grew by 12.6% YoY to INR 1,34,240 crore.
- Total Gold loan portfolio (including retail and agri.) stands at INR 45,074 crore, registering a growth of 28.3% on a YoY basis.
- Organic MSME portfolio grew by 12.6% YoY to INR 1,15,995 crore.
- Corporate advances registered a growth of 10.2% YoY and stands at INR 3,62,813 crore.
Financial result for Quarter ended 31st December 2023
Particulars (INR crore) | Q3FY23 | Q2FY24 | Q3FY24 | YoY(%) | 9MFY23 | 9MFY24 | YoY(%) |
Interest Income | 23,540 | 27,862 | 28,605 | 21.5 | 63,732 | 83,023 | 30.3 |
Interest Expenses | 12,722 | 17,031 | 17,504 | 37.6 | 33,901 | 50,094 | 47.8 |
Fee Income | 1,490 | 1,996 | 1,543 | 3.6 | 4,284 | 5,046 | 17.8 |
Net Interest Income (NII) | 10,818 | 10,831 | 11,101 | 2.6 | 29,831 | 32,929 | 10.4 |
Operating Income | 14,370 | 15,002 | 13,912 | -3.2 | 36,391 | 43,233 | 18.8 |
Operating Expenses | 6,138 | 6,982 | 6,897 | 12.4 | 17,600 | 20,373 | 15.8 |
Operating Profit | 8,232* | 8,020 | 7,015 | -14.8 | 18,791 | 22,859 | 21.7 |
Total Provisions (other than tax) and contingencies | 2,404 | 2,161 | 666 | -72.3 | 5,717 | 4,774 | -16.5 |
of which, Provision for NPA Bad Debts Written-off | 817 | 2,285 | 1,007 | 23.3 | 4,031 | 4,986 | 23.7 |
Profit before Tax | 5,828 | 5,859 | 6,349 | 8.9 | 13,074 | 18,085 | 38.3 |
Provision for Tax | 1,976 | 1,606 | 1,769 | -10.5 | 3,740 | 5,183 | 38.6 |
Net Profit | 3,853 | 4,253 | 4,579 | 18.8 | 9,334 | 12,902 | 38.2 |
*Excluding reversal of MTM Provision Operating Profit for Q3FY23 would have been INR 7,482 crore
Business position
Particulars (INR crore) | Dec 31 2022 | Sep 30 2023 | Dec 31 2023 | YoY (%) |
Domestic deposits | 10,03,737 | 10,74,114 | 10,67,371 | 6.3 |
Domestic CASA | 4,17,812 | 4,28,320 | 4,34,337 | 4.0 |
Global deposits | 11,49,507 | 12,49,647 | 12,45,300 | 8.3 |
Domestic advances | 7,60,249 | 8,34,723 | 8,62,086 | 13.4 |
Of which, retail loan portfolio (Organic) | 1,66,861 | 1,93,682 | 2,03,627 | 22.0 |
Global advances | 9,23,878 | 10,24,501 | 10,49,327 | 13.6 |
NIM Global % | 3.37 | 3.07 | 3.10 | (27 bps) |
Key Ratios
Particulars | Q3FY23 | Q2FY24 | Q3FY24 |
Return on Assets (%) | 1.13 | 1.14 | 1.20 |
CRAR (%) | 14.93 | 15.30 | 14.72 |
CET-1 (%) | 10.83 | 11.57 | 11.11 |
Gross NPA (%) | 4.53 | 3.32 | 3.08 |
Net NPA (%) | 0.99 | 0.76 | 0.70 |
PCR (with TWO) (%) | 92.34 | 93.16 | 93.39 |
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