Bank of Baroda(BoB) Q2 result: Profit jumps 23%; NII grows 7.3% YoY

On October 25, PSU lender Bank of Baroda Ltd. announced a 23% increase in net profit for the quarter that ended on September 30, 2024, totaling Rs 5,238 crore. In the previous year, it declared a net profit of Rs 4,253 crore. 

In Q2FY25, the lender's overall income increased by 11% to Rs 35,445 crore from Rs 32,033 crore in Q2FY24. In Q2FY25, the lender's net interest income increased by 7% to Rs 11,622 crore from Rs 10,831 crore in the same time last year. 

The bank's non-interest revenue increased by 24.2 percent year over year to Rs 5,181 crore during the reporting quarter, from Rs 4,171 crore during the same time last year..

Global deposits of the jumped 9.1 percent in the second quarter of the current financial year to Rs 13.64 lakh crore. In the similar quarter last year, global deposits stood at 12.5 lakh crore.

Of the global deposit, domestic deposits which have a highest share increased by 7.1 percent on-year to Rs 11.51 lakh crore, from Rs 10.74 lakh crore. Whereas, international deposits jumped sharply by 21.2 percent on-year to Rs  2.12 lakh crore.

The domestic cost of deposits of the bank have increased in the reporting quarter to 5.16 percent, as compared to 5.13 percent in a quarter ago period, and 4.99 percent in a year ago period.

International cost of deposits have also seen a sharp increase on a yearly as well as on domestic basis. International cost of deposits stood at 4.84 percent in July-September quarter, as compared to 4.66 percent in a quarter ago period and 4.45 percent in a year ago period.

Global advances of the bank increased 11.6 percent to Rs 11.43 lakh crore in the second quarter of the current financial year.

Retail advances (organic) grew 19.9 percent on-year to Rs 2.32 lakh crore in July-September quarter, from Rs 1.94 lakh crore. Domestic gross advances rose 12.5 percent on-year to Rs 9.39 crore in Q2FY25.

International Advances of the lender increased by 7.6 percent on-year to Rs 2.04 lakh crore.

Yield on advances on global advances have seen a moderation on a quarterly basis to 8.48 percent in July-September quarter, from 8.55 percent in April-June quarter. However, it has increased on a yearly basis.

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Bank of Baroda(BoB) Q1 Net profit rises 9.5%

Public Sector lender Bank of Baroda(BoB) on July 31 reported 9.5 percent rise in standalone net profit at Rs 4,458 crore for the quarter ended June 30, 2024. It reported standalone net profit of Rs 4,070 crore in the year-ago period.

On sequential basis, the bank's net profit fell 9 percent.

Gross non-performing assets (NPA) ratio stood at 2.88 percent as on June 30, as compared to 2.92 percent on March 31, 2024 and 3.51 percent on June 30, 2023.

Net NPA ratio stood at 0.69 percent as on June 30, as against 0.68 percent on March 31, 2024 and 0.78 percent on June 30, 2023.

In absolute terms, Gross NPA of the bank eased to Rs 30,873.14 crore as on June 30, as compared to Rs 31,833.63 crore as on March 31, and Rs 34,832.16 crore as on June 30, 2023.

Similarly, net NPA of the bank fell to Rs 7,231.53 crore as on June 30, as against Rs 7,213.34 crore as on March 31, and Rs 7,482.45 crore as on June 30, 2023.

The Provision Coverage Ratio of the Bank stood at 93.32 percent including TWO (Technical Write-off) and 76.58 percent excluding TWO in Q1 FY25, as per release.

Slippage ratio sequentially declined by 7 basis points (bps) to 1 .05 percent for Q1FY25 as against 1 .12 percent in Q4FY24.

In the reporting quarter, fresh slippages of the bank stood at Rs 2,787 crore. Majority of the slippages has came from MSME segment worth Rs 1,206 crore, which was followed by Rs 842 crore from retail and Rs 644 crore from agriculture.

Net Interest Income (NII) grew by 5.5 percent on-year to Rs 11,600 crore in Q1FY25. Non-Interest Income for the quarter stands at Rs 2,487 crore for Q1 FY25.

Global NIM stands at 3.18 percent in Q1 FY25. Domestic NIM of the bank stood at 3.30 percent and international NIMs at 2.23 percent in the first quarter of the current financial year.

In April-June quarter, global deposits of the bank grew to Rs 13.07 lakh crore, from around Rs 12 lakh crore in a year ago period. Global deposits were up 8.9 percent.

Domestic deposit rose 5.3 percent on-year to Rs 11.1 lakh crore, and international deposit jumped 34.7 percent on-year to Rs 2.02 lakh crore.

Global advances of the bank in April-June quarter jumped 8.1 percent on-year to Rs 10.72 lakh crore. In a year ago period, global advances stood at Rs 9.91 lakh crore.

In the global advances, retail advances grew 20.9 percent on-year to Rs 2.23 lakh crore.

Domestic CASA deposits registered a growth of 6 percent on-year and stands at Rs 4.49 lakh crore as of June 30, as per press release.

CRAR of the Bank stands at 16.82 percent in June quarter. Tier-I stood at 14.65 percent (CET-1 at 13.08 percent, AT1 at 1.57 percent) and Tier-II stood at 2.17 percent as of June quarter.

The CRAR and CET-1 of consolidated entity stands at 17.20 percent and 13.57 percent, respectively. Liquidity Coverage Ratio (LCR) of approximately 138 percent as on June 30.

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Bank of Baroda(BoB) Q4 net profit rises 2.3%, asset quality improves; declares dividend

 

Public sector lender Bank of Baroda on May 10 reported a net profit of Rs 4,886 crore for the January-March quarter of the financial year 2023-24, which marks a 2.3 percent jump as compared to a net profit of Rs 4,775 crore clocked in the year-ago period.

The bank's gross non-performing asset (NPA) stood at 2.92 percent, down from 3.79 percent in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.68 percent as compared to 0.89 percent a year ago.

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Bank Officers Union announces All India strike against New Transfer Policy

The All India Bank of Baroda Officers’ Association has declared a strike in protest against the bank management’s new anti-officer transfer policy. According to the circular, officers who have completed 6 years in the officers’ cadre within their current zone can request a transfer to another zone of their preference after this period. The union views this policy as unjust due to the lengthy 6-year duration and is demanding a reduction in the required duration.

The BOB Officers’ Union has threatened an All India Strike if the revised transfer policy is not revoked. They argue that the current policy imposes undue hardship on officers and are advocating for a more flexible approach to transfers.

• Black Badge/Black ribbon wearing from Monday, 29th April.

• Submission of Memorandum to all Regional Heads addressed to our Bank’s MD&CEO by team of Office bearers/Activists on 30th April 2024 evening.

• Demonstrations outside all Regional Offices on one evening during the period 1st May to 4th May 2024, taking into account the election model code of conduct as applicable in the relevant area.

• All India Strike on 7th June 2024, after General Elections are over. In the meantime, we shall serve Strike Notice to the Bank.

The last year transfer policy/IZT were exercised with criteria of 3 years for lady officers and 4 years for Male officers and now with policy being changed to 6 years, the sudden increase in the minimum relaxation tenure for this IZT(Inter Zone Transfer) exercise is creating panic among the officers and demoralising concerned officers and their family members, who have been posted outside the parent zone during previous IZT exercises.

Earlier officers with age of 55 are eligible for retransfer to their parent zone or to the zone of their choice, now in this IZT policy the age criteria has been increased to 58 years which is ruthless.

The IZT policy eligible period for the employees being 6 years is very long and staying away from families is unbearable, which adversely impact family life of the officer’s.

Since 2019 there is no recruitment in Bank and all previous IZT batches have been retransferred with 3 / 4 years ( lady staff 3 years) criteria, Management’s sudden shift to 6 Years minimum tenure is demoralizing officer employees as there is no work life balance in our bank due to IZT Transfers.

Many of the lady officers were undergoing fertility treatments and still were transferred midway and suffered due to delay in treatment due to IZT Still there are some officers whose IZT request has been rejected in earlier IZT exercises for shortage of a day or two with respect to the cutoff date. But these officers has been identified by the Management during the IZT 2019-20 and relieved late by the respective zonal office/regional office which in turn effected the officers during retransfer to the parent zone.

The Management is thinking that they have given enough concession for women and men under the IZT policy but they have forgotten that most of the employees who have undergone IZT posting have been undergoing physical and mental agony, since many of the officers have left their families back at their parent zone due to health problem of parents/in laws, nontransferable employment of spouse, education problem of children etc. This IZT policy has further demotivated and shut down the hope of these officers of getting back to their family.

Every year all the officers of the bank are obeying the instructions of the top management and undergoing the IZT even though they are facing some personal problems with a hope that they will be transferred back to the parent zone after completion of 3 years’ service.

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BoB, PNB among 6 PSU banks with high NPAs

Non Performing asset (NPA) is a loan or advance for which the principal or interest payment has remained overdue for a period of 90 days or more. According to data from Trendlyne, SBI, Bank of Baroda, and PNB are among the 6 PSU banks that reported the highest NPAs in Q3 of FY24. Here's the list:

Bank of India(BoI)

The net NPA of Bank of India stood at 1.41% in Q3FY24, which is the highest among PSU Banks. The PE ratio of the stock is 9.66. Bank of India has a market cap of Rs 61,870 crore.

Union bank of India

Union Bank of India reported a net NPA of 1.08% in Q3FY24. The PE ratio of the stock is 7.74. The firm's market cap is at Rs 1,02,773 crore.

Punjab National Bank (PNB)

Punjab National Bank (PNB) reported a net NPA of 0.96% in Q3FY24. The PE ratio of the stock is at 17.76. Punjab National Bank's market cap is at Rs 1,35,490 crore.

Bank of Baroda(BoB)

The net NPA ratio of Bank of Baroda stood at 0.7% in the December quarter of FY24. The PE ratio of the stock is 7.3. It has a market cap of Rs 1,38,153 crore.

State Bank of India (SBI) 

The net NPA ratio of the State Bank of India (SBI) stood at 0.64% in Q3FY24. The PE ratio of the stock is 10.26. SBI has a market cap of Rs 6,65,731 crore.

Indian Overseas Bank(IOB)

Indian Overseas Bank reported a net NPA of 0.62% in the December quarter of FY24. The PE ratio of the stock is at 50.36, while its market cap is at Rs 1,26,457 crore.

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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%).

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Bank of Baroda(BoB) Q2 profit rises 28% YoY

 

Bank of Baroda on Saturday reported a 28.4% year-on-year (YoY) rise in net profit for the quarter ended September 2023 to Rs 4,253 crore. Total income from operations increased by 39% on year to Rs 32,033 crore.

Net interest income (NII), the difference between interest earned and interest expended, grew by 6.5% YoY to Rs 10,831 crore.

The non-interest income grew more than two-fold on year to Rs 4,171 crore during the quarter.

Provisions and contingencies for the quarter increased to Rs 2,161 crore from Rs 1,627 crore a year ago.

The gross non-performing assets ratio as of September end stood at 3.32%, compared to 5.31% a year ago and 3.51% a quarter ago. The net non-performing assets ratio as of September end stood at 0.76%, compared to 1.16% a year ago and 0.78% a quarter ago.

The capital adequacy ratio under Basel-III norms was 15.30% as of September end, compared to 15.25% a year ago.

The global net interest margin (NIM) for the quarter stood at 3.07%, the state-owned lender said in a release.

Operating profit for the quarter increased by 33% on year to Rs 8,020 crore. The cost-to-income ratio reduced to 46.54% from 49.74% a year ago.

The bank’s balance sheet remained robust, with a provision coverage ratio of 93.16%. The credit cost remained below 1% at 0.92% during the quarter.

The global advances saw a strong 17% YoY growth during the quarter, led by robust retail loan book growth. Organic retail advances grew by 22%, led by higher focus on auto loan, home loan, personal loan, mortgage loan, and education loan.

The lender achieved a total business of Rs 22.74 lakh crore, registering a growth of 16% YoY.

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Bank of Baroda(BoB) App Scam: Has Sent Shockwaves To Indian Banking System - All You Need To Know

Bank of Baroda has been in the eye of a storm after a potential fraud in the process of signing up customers for its Internet banking app. The employees at certain Bank of Baroda branches allegedly linked customers' bank accounts with unrelated mobile numbers and enrolled them on the "Bob World" app, Al Jazeera reported in July. 

What exactly happened?

This mobile app, similar to other banking apps, offers customers various digital banking services, including loan access, savings, investment options, bill payments, and even booking buses and hotels. According to the report, bank employees resorted to linking bank accounts without associated mobile numbers to the contact details of various personnel, including staff, sanitation workers, and security personnel to meet demanding sign-up targets for the digital app.

After the initial registration, these employees would then deregister the bank accounts from the app and reuse the same mobile numbers to link a different set of bank accounts. To oversee this process, each branch had a designated nodal officer, as reported by the publication. While Bank of Baroda initially denied these allegations, it later initiated an internal audit in response to the accusations.

But How Did It All Begin? 

The first sign of illegal on boarding in Bank of Baroda's BOB World App was exposed by AI Jazeera in July 2023.

As per the Al Jazeera report, it was known that the bank's employees were given the task of onboarding customers on the BOB World mobile app when it was launched in September 2021. The task was extensive, and employees struggled to onboard people while they feared getting poor performance reviews from their regional offices. Desperate to succeed in the task at hand, a Bank of Baroda employee situated in Bhopal revealed to AI Jazeera that he and his colleagues learned of a workaround from peers in other branches. This employee revealed that they would fetch out the list of bank accounts which were not linked with mobile numbers, and then the employees would link these accounts to any mobile numbers they could gather such as bank staffers, sanitation and security workers and their relatives. The goal of doing so was to generate the one-time password (OTP) which is required to join the application and sign up these accounts. The next step by these employees was to deregister these customers from the app and reuse the same mobile numbers to repeat the process all over again.

Even a nodal officer reportedly from the regional office in Bhopal joined the practice by giving his and his wife's phone numbers to link with the accounts. AI Jazeera cited an email which pointed out the scale of impact on bank accounts. For instance, in the Bhopal zone, the news channel found out that close to 1,300 mobile numbers were tied to anywhere from 30 to 100 bank accounts, putting nearly 62,000 bank accounts at risk. This will be on average 47 bank accounts linked to a single mobile number. As per the policy of Bank of Baroda policy, one mobile number can be linked to at least eight bank accounts, however, one mobile number cannot be linked to multiple mobile banking apps. Bank of Baroda had denied the findings in the AI Jazeera report. But when RBI stepped into the same matter, Bank of Baroda carried out its investigation, finding many employees carrying this fraudulent act.

What did the RBI say?

Now, the bank app has been banned by the RBI from onboarding new customers. The RBI has now mandated that the Bank of Baroda, the seventh largest in India by market cap, sign in new customers to the BoB World app after it rectifies the identified issues and strengthens the relevant processes to the regulator's satisfaction, as per ET.

Bank of Baroda takes action:

In response to this, the Bank of Baroda has taken action by suspending certain employees and launching an investigation to establish accountability. “Some employees have been suspended in Bhopal, Baroda and Rajasthan and a probe has been initiated. So far the suspensions are only in the smaller towns outside the metros,” a person familiar with the process told ET.

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