Bank of Baroda(BoB) reports Q4 net loss on higher bad loan provisions

State-owned Bank of Baroda (BoB) on Wednesday reported a net loss of Rs 991 crore for the fourth quarter ended March 2019 on higher bad loan provisions.

In the corresponding quarter last year, the company posted a net profit of Rs 3,102 crore. CNBC-TV18 Polls had predicted a profit of Rs 899.3 crore for the quarter under review.

For the whole year, standalone and consolidated profit stood at Rs 433 crore and Rs 1,100 crore respectively.

Domestic CASA deposits registered a growth of 8.36 percent Y-o-Y. CASA deposits to total domestic deposits at 40.23 percent versus 41.18 percent as on March 31, 2018. Domestic deposits stood at Rs 5,17,966 crore as on March 31,2019 up by 11.91 percent from Rs 4,66,974 crore as on March 31, 2018. Domestic advances grew by 14.17 percent to Rs 3,70,185 crore as on March 31, 2019 from Rs 3,24,239 crore as on March 31,2018. The increase was led by retail loans which grew by 24.18 percent.

The operating profit stood at Rs 3,861 crore as against Rs 3,539 crore in the previous quarter. For FY19, operating profit increased by 12.34 percent due to 22.70 percent increase in net interest income at Rs 18,480 crore.

Capital adequacy ratio of the bank stood at 13.42 percent and CET -1 at 10.38 percent versus 11.67 percent and 8.65 percent in December 31,2018. Consolidated CET-1 and Capital Adequacy Ratios improved in March 2019 at 11.60 percent (9.74 percent in December 2018) and 14.2 percent (12.62 percent in December 2018) respectively.

Domestic Y-o-Y credit growth remained in double-digits for eight quarters. Terminal and average growth of 14.17 percent and 18.75 percent respectively. Retail loans increased by 24.18 percent led by home and auto loans at 22.15 percent and 49.43 percent respectively, BoB said in a BSE filing.

The net interest income (Nil) of the bank increased to Rs 4,863 crore. Adjusting for IT refund of Rs 204 crore in March 2019, Nil increased by 25.73 percent on a Y-o-Y basis. Domestic core fee income increased by 10.41 percent Y-o-Y to Rs 995 crore.

Consolidated and standalone operating profit stood at Rs 15,519 crore and Rs 13,487 crore respectively for FY19 an increase of 12.34 percent and 14.43 percent respectively. Treasury trading gains were lower at Rs 989 crore from Rs 1,878 crore in FY18. Standalone operating profit for Q419 stood at Rs 3,861 crore registering an increase of 44.88 percent.

Net interest margin (NIM) improved to 2.90 percent in Q4FY19 from 2.69 percent last quarter. For the year, NIM increased to 2.72 percent from 2.43 percent in the previous year. Domestic NIM increased to 2.98 percent in Q4 FY19 from 2.80 percent last quarter.

Gross NPA reduced to 9.61 percent as on March 31, 2019 against 11.01 percent last quarter. Net NPA fell to 3.33 percent from 4.26 percent last quarter. Absolute amount of net NPA also declined by Rs 3,521 crore to Rs 15,609 crore, lowest in eight quarters.