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Aided by lower provisioning and robust operating performance, Bank of Baroda (BOB), a leading public sector bank, on Saturday reported a 57 per cent increase in consolidated net profit for the quarter ended September 2022 at ₹3,400 crore (₹2,168 crore).
The latest bottomline performance was also substantially higher than consolidated net profit of ₹1,944 crore recorded in the June 2022 quarter.
Total consolidated income for the quarter under review was up 19.6 per cent at ₹26,321 crore (₹21,999 crore). Total consolidated income in the June 2022 quarter stood at ₹ 21,577 crore.
Sanjiv Chadha, Managing Director & CEO, Bank of Baroda
Operating profit on a consolidated basis stood at ₹6,935 crore (₹ 5833 crore) compared with ₹4,282 crore in the June 2022 quarter.
Commenting on the latest quarterly performance of the bank, Sanjiv Chadha, Managing Director & CEO, Bank of Baroda, said “It was an excellent quarter marked by the bank’s highest-ever net profit at ₹3,313 crore. The bank posted an industry leading 15 per cent q-o-q growth in NII, led by strong broad-based advances growth and healthy q-o-q margin expansion of 31bps to 3.33 per cent. Deposit growth was better than the industry. While our overall Credit Deposit ratio is at 80.3 per cent, the domestic CD ratio is at 72.9 per cent —which means the bank still has room to grow its advances ahead of its deposits. Asset quality of the bank improved substantially with a 95bps q-o-q reduction in Gross NPA”.
For the first six months of the current fiscal, BOB’s consolidated net profit surged to ₹ 5,344 crore (₹3,354 crore).
Meanwhile, on a standalone basis, Bank of Baroda’s net profit for the second quarter ended September 30, 2022 came in at ₹3,313 crore, up 58.7 per cent from a year earlier, latest filing by the bank with stock exchanges showed.
Bank of Baroda reported a net interest margin (NIM) of 3.41 per cent, higher than 3.07 per cent in the June 2022 quarter and 2.9 per cent in the year-ago period.
Asset quality improved
Gross non performing advances (GNPA) stood at 5.31 per cent of total advances, down from 8.11 percent as of end September last year. On the other hand, net NPA stood at 1.16 percent as compared with 2.83 per cent a year ago.
BoB‘s fresh slippages for the quarter under review stood at ₹3,479 crore (₹5,802 crore). Provisions towards bad loans were down 41 percent at ₹ 1,628 crore.
BOB’s total advances grew 19 per cent year-on-year in September 2022 quarter. While the bank’s global advances stood at ₹ 8.73 lakh crore as of end September 2022, domestic advances grew 15 per cent y-o-y to ₹ 7.16 lakh crore.
Global deposits grew 13.6 percent to ₹10.90 lakh crore, of which domestic deposits stood at ₹9.59 lakh crore (up 10.9 per cent y-o-y as of end September 2022).
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