Bank of Baroda(BoB) Q3 results: Net profit jumps 19%

 

Bank of Baroda on Wednesday, January 31, reported an 18.8% rise in net profit reaching ₹4,579 crore in the third quarter of the 2023-24 fiscal as compared to ₹3,852.7 crore last year. The lender's net interest income (NII) stood at ₹11,101 crore, slightly surpassing the CNBC-TV18 poll estimate of ₹11,085 crore.

This represents a year-on-year (YoY) increase of 2.6%, rising from ₹10,818.3 crore.

The bank displayed some improvement in asset quality, with Gross NPA (Non-Performing Assets) at 3.08% as opposed to 3.32% in the previous quarter.

Net NPA also witnessed a decline, standing at 0.70%, down from 0.76% in the previous quarter.

Gross NPA amounted to ₹32,317 crore, a decrease from ₹33,978.5 crore in the previous quarter. Net NPA reduced to ₹7,208.3 crore from ₹7,596.7 crore in the last quarter.

The bank made provisions of ₹666.3 crore, significantly lower than the ₹2,404 crore reported YoY and ₹2,160.6 crore in the previous quarter.

The Cost to Income ratio demonstrated a reduction by 123 basis points (bps) YoY, reaching 47.13% for the nine months ending December 2023 (9MFY24).

The Global Net Interest Margin (NIM) of the lender improved by 3 basis points sequentially, standing at 3.10% in Q3FY24, compared to 3.07% in Q2FY24.

The Net Interest Margin for 9MFY24 is reported at 3.14%.

The credit cost remained below 1%, reporting 0.69% for 9MFY24 and 0.39% for the quarter.

The bank maintained a healthy liquidity coverage ratio at 133% as of December 31, 2023.

Bank of Baroda's global advances registered growth of 13.6% YoY in Q3FY24, driven by robust retail loan book growth.

The bank's organic retail advances grew by 22%, propelled by growth in high-focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), and Education Loan (18.3%).