Sunday, July 21, 2024
Home Banks Bank of Baroda announces Financial Results for the Quarter ended 30th September 2023

Bank of Baroda announces Financial Results for the Quarter ended 30th September 2023

Bank of Baroda announces Financial Results for the Quarter ended 30th September 2023

by NewsMonks
A+A-
Reset

Key Highlights

Bank of Baroda (BOB) quarterly Net profit higher by 28.4% YoY at INR 4,253 crore in Q2FY24. Net Profit for H1FY24 grew by 51.8% to INR 8,323 crore.

BOB has delivered ROA of more than 1% and ROE around 20%, consistently for last 5 quarters. ROA for Q2FY24 stands at 1.14% and ROE at 19.74%.

The growth in profitability was supported by healthy Operating Income growth of 25% YoY in Q2FY24.

Operating income growth was augmented by ~2x YoY growth in Non-Interest Income in Q2FY24.

Non-Interest Income growth in Q2FY24 was driven by robust YoY growth in Fee Income (+31.7%), Trading Gains (+69.5%) and Recovery from TWO (~2x)

Strong growth in Income coupled with subdued increase in Opex has resulted in robust Operating profit growth of 33% YoY for Q2FY24. Operating profit for H1FY24 higher by 50.1% YoY.

The Bank has been able to effect a reduction in the Cost to Income ratio by 320 bps YoY to 46.54% for Q2FY24. Cost to Income ratio for H1FY24 is also declined by 608 bps YoY to 45.97%.

BOB has witnessed significant improvement in its Asset quality with reduction in GNPA by 199 bps YoY to 3.32%. Bank’s NNPA improved to 0.76%, a reduction of 40 bps YoY.

BOB’s balance sheet remained robust with healthy Provision Coverage Ratio (PCR) of 93.16% with TWO & at 77.64% without TWO.

Credit cost remains below 1% at 0.92% for Q2FY24.

BOB’s Global Advances registered a strong YoY growth of 17.3% in Q2FY24 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 22.2%, driven by growth in high focus areas such as Auto Loan (21.1%), Home Loan (16.1%), Personal Loan (67.2%), Mortgage Loan (13.3%), Education Loan (18.3%).

Bank achieved a total business of INR 22,74,148 crore as of 30th Sep 2023, registering a growth of 15.8% YoY.

 

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

BOB reported a standalone Net Profit of INR 4,253 crore in Q2FY24 as against a profit of INR 3,313 crore in Q2FY23. Net Profit for H1FY24 stands at INR 8,323 crore (+51.8% YoY) as against INR 5,482 crore in H1FY23.

Net Interest Income (NII) grew by 6.5% YoY to INR 10,831 crore in Q2FY24. NII for H1FY24 registered a growth of 14.8% and stands at INR 21,827 crore.

Non-Interest Income grew ~2x to INR 4,171 crore in Q2FY24 as against INR 1,826 crore in Q2FY23. Non-Interest Income for H1FY24 stands at INR 7,493 crore.

Global NIM stands at 3.07% in Q2FY24.

Yield on Advances increased to 8.43% in Q2FY24 as against 7.22% in Q2FY23.

Cost of Deposits increased to 4.92% in Q2FY24 as against 3.59% in Q2FY23.

Operating Income for Q2FY24 stands at INR 15,002 crore, increase of 25% YoY. Operating Income for H1FY24 grew by 33.2%.

Operating Profit for Q2FY24 stands at INR 8,020 crore, increase of 33% on a YoY basis. Operating Profit for H1FY24 increased by 50.1% to INR 15,844 crore.

Cost to Income ratio reduced to 46.54% for Q2FY24 as against 49.74% for Q2FY23.

Return on Assets (annualised) improved to 1.14% in Q2FY24 from 1.01% in Q2FY23.

Return on Equity (annualised) for Q2FY24 increased by 18 bps YoY to 19.74%.

For the consolidated entity, Net Profit stood at INR 4,394 crore in Q2FY24 as against INR 3,400 crore in Q2FY23.

Asset Quality

The Gross NPA of the Bank reduced by 26.8% YoY to INR 33,968 crore in Q2FY24 and Gross NPA Ratio improved to 3.32% in Q2FY24 from 5.31% in Q2FY23.

The Net NPA Ratio of the Bank stands at 0.76% in Q2FY24 as compared with 1.16% in Q2FY23.

The Provision Coverage Ratio of the Bank stood at 93.16% including TWO and 77.64% excluding TWO in Q2FY24.

Slippage ratio declined to 1.28% for H1FY24 as against 1.53% in H1FY23.

Credit cost for the Q2FY24 stands at 0.92%.

Capital Adequacy

 

CRAR of the Bank stands at 15.30 % in Sep’23. Tier-I stood at 13.19% (CET-1 at 11.57%, AT1 at 1.62%) and Tier-II stood at 2.11% as of Sep’23.

The CRAR and CET-1 of consolidated entity stands at 15.74% and 12.11% respectively

The Liquidity Coverage Ratio (LCR) consolidated stands at 132%.

 

Business Performance

Global Advances of the Bank increased to INR 10,24,501 crore, +17.3% YoY.

Domestic Advances of the Bank increased to INR 8,34,723 crore, +16.5% YoY.

 

Global Deposits increased by 14.6% YoY to INR 12,49,647 crore.

Domestic Deposits increased by 12.0% YoY to INR 10,74,114 crore in Sep’23.

International Deposits grew by 33.8% on a YoY basis to INR 1,75,533 crore in Sep’23.

Organic Retail Advances grew by 22.2%, led by growth in high focus areas such as Auto Loan (21.1%), Home Loan (16.1%), Personal Loan (67.2%), Mortgage Loan (13.3%), Education Loan (18.3%) on a YoY basis.

Agriculture loan portfolio grew by 13.7% YoY to INR 1,30,694 crore.

Total Gold loan portfolio (including retail and agri.) stands at INR 43,884 crore, registering a growth of 31.0% on a YoY basis.

Organic MSME portfolio grew by 12.1% YoY to INR 1,13,512 crore.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial result for Quarter ended 30th September 2023

Particulars (INR crore)

Q2FY23

Q1FY24

Q2FY24

YoY(%)

H1FY23

H1FY24

YoY(%)

Interest Income

21,254

26,556

27,862

31.1

40,192

54,417

35.4

Interest Expenses

11,080

15,559

17,031

53.7

21,179

32,590

53.9

Fee Income

1,515

1,507

1,996

31.7

2,793

3,503

25.4

Net Interest Income (NII)

10,174

10,997

10,831

6.5

19,013

21,827

14.8

Operating Income

12,000

14,319

15,002

25.0

22,020

29,320

33.2

Operating Expenses

5,969

6,495

6,982

17.0

11,462

13,477

17.6

Operating Profit

6,031

7,824

8,020

33.0

10,558

15,844

50.1

Total Provisions (other than tax) and contingencies

1,628

1,946

2,161

32.7

3,312

4,106

24.0

of which, Provision for NPA Bad Debts Written-off

1,654

1,693

2,285

38.1

3,214

3,978

23.8

Profit before Tax

4,403

5,878

5,859

33.1

7,246

11,737

62.0

Provision for Tax

1,090

1,807

1,606

47.3

1,765

3,414

93.4

Net Profit

3,313

4,070

4,253

28.4

5,482

8,323

51.8

 

 

Business position

Particulars (INR crore)

Sep 30 2022

Jun 30 2023

Sep 30 2023

YoY (%)

Domestic deposits

9,58,967

10,50,306

10,74,114

12.0

Domestic CASA

4,10,151

4,23,600

4,28,320

4.4

Global deposits

10,90,172

11,99,908

12,49,647

14.6

Domestic advances

7,16,737

8,12,626

8,34,723

16.5

Of which, retail loan portfolio (Organic)

1,58,506

1,84,091

1,93,682

22.2

Global advances

8,73,496

9,90,988

10,24,501

17.3

NIM Global %

3.33

3.27

3.07

(26 bps)

 

 

Key Ratios

Particulars

 

Q2FY23

Q1FY24

Q2FY24

Return on Assets (%)

1.01

1.11

1.14

CRAR (%)

15.25

15.84

15.30

CET-1 (%)

10.95

11.94

11.57

Gross NPA (%)

5.31

3.51

3.32

Net NPA (%)

1.16

0.78

0.76

PCR (with TWO) (%)

91.73

93.23

93.16

 

 

 

4th November, 2023

Mumbai

 

You may also like

Leave a Comment

Introducing NewsMonks, your premier source for comprehensive and concise news coverage. Dive into the world of business news, alongside a diverse range of other current topics. Stay informed, stay ahead with NewsMonks. Your go-to destination for news that matters.

 

Contact : +91 6351857103 (WA Only)

Email: newsmonnks@gmail.com 

 

Live Traffic

Edtior's Picks

All Rights Reserved by NewsMonks @2023.,
Powered by MediaHives.com