Bank of Baroda (BoB) reported a 75 per cent year-on-year (yoy) jump in third quarter standalone net profit at ₹3,853 crore against ₹2,197 crore in the year ago quarter on the back robust growth in both net interest income and non-interest income and sharp decline in loan loss provisions.

Net interest income (difference between interest earned and interest expended) rose 26.5 per cent yoy to ₹10,818 crore (₹8,552 crore in the year ago quarter).

Non-interest income (comprising fee-based income, treasury income, and other non-interest income) was up 41 per cent yoy at ₹3,552 crore (₹2,519 crore).

Provision for non-performing assets (NPAs) and bad debts written-off declined 81 per cent yoy to ₹817 crore (₹4,283 crore). However, provisions for non-performing investments rose to ₹1,409 crore (₹447 crore).

Gross advances were up 19.7 per cent and stood at ₹9,23,878 crore as at December-end 2022. Total deposits increased 17.5 per cent to ₹11,49,507 crore.

Sanjiv Chadha, MD & CEO, said the results show that the bank can grow aggressively, with margins and profits going along with that.

“Both deposits and advances have grown well…The challenge for banks has been the expanding gap between deposit and advances growth. But that is less of an issue for us.

“Our domestic Credit-Deposit ratio is still at about 74 per cent. This means even as we go ahead, there is enough scope for us to make sure that we can actually keep our foot on the accelerator,” he said.

GNPAs declined to 4.53 per cent of gross advances as at December-end 2022 against 5.31 per cent as at September-end 2022. Net NPAs nudged lower to 0.99 per cent of net advances against 1.16 per cent.