Bank of Baroda(BoB) Q1 Result, Profit spikes 79%

  

Public sector lender Bank of Baroda on July 30 reported a massive 79.4 percent year-on-year growth in standalone profit at Rs 2,168 crore for the quarter ended June 2022, despite fall in other income and pre-provision operating profit. The significant decline in bad loans provisions aided the bottom line.

Net interest income during the June quarter grew by 12 percent to Rs 8,838.4 crore compared to year-ago period, with credit growth at 18 percent and 10.9 percent YoY increase in global deposits.

"Global advances increased by 18 percent YoY to Rs 8.39 lakh crore with domestic advances growth of 15.7 percent YoY at Rs 6.95 lakh crore, while global deposits rose by 10.9 percent YoY to Rs 10.32 lakh crore with domestic deposits growing 8.5 percent to Rs 9.09 lakh crore," Bank of Baroda said in its BSE filing.

The bank further said the net interest margin at 3.02 percent for the June quarter contracted 6 bps QoQ and 2 bps YoY.

"Global advances increased by 18 percent YoY to Rs 8.39 lakh crore with domestic advances growth of 15.7 percent YoY at Rs 6.95 lakh crore, while global deposits rose by 10.9 percent YoY to Rs 10.32 lakh crore with domestic deposits growing 8.5 percent to Rs 9.09 lakh crore," Bank of Baroda said in its BSE filing.

The bank further said the net interest margin at 3.02 percent for the June quarter contracted 6 bps QoQ and 2 bps YoY.

Total provisions and contingencies fell sharply by 58 percent YoY to Rs 1,684.80 crore for the quarter ended June 2022 and the sequential decline was 55 percent, while bad loans provisions dropped by 39 percent YoY to Rs 1,560 crore for the quarter.

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Six Indian banks sue GVK for Rs 12,114 crore: Report

Six Indian banks are reportedly suing the GVK Group for $1.5 billion or Rs 12,114 crore, according to the Times of India. The six banks include Bank of Baroda, Bank of India, Canara Bank , Icici Bank , Indian Overseas Bank, and Axis Bank.

According to the report, GVK defaulted on a $1-billion loan and a $35-million letter of credit facility given by banks in 2011, and a $160-million loan lent in 2014.

GVK Coal Developers (Singapore) and nine other GVK Group companies are being sued in the case which opens Monday.

As per the banks, GVK failed to make repayments as they fell due and failed to obtain a mining lease in the Alpha project in Queensland, Australia by December 31, 2012, which was a project milestone that had to be satisfied. The banks reportedly asked GVK in November 2020 to cancel the agreement and requested repayment. But neither GVK nor its guarantors has paid any of the sums owed, the banks claimed.

On the other hand, GVK argued that "the loans was to provide part funding for the acquisition of the Hancock companies in Australia to develop their assets — including the Alpha project — into working coal mines".

“The deterioration in the market for coal, the lack of third-party investment, legal challenges to the mining projects in the courts of Queensland, meant that very little progress was made to develop the mining assets,” GVK states. GVK states it could not obtain the mining lease owing to litigation by environmental groups but denies this was a “default”.

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Bank of Baroda Q4 result | Net profit jumps nine-fold YoY

 

The state-owned lender Bank of Baroda on May 13 declared a nine-fold jump in its profit after tax (PAT) of Rs 7,272 crore for the year ended March 2022 as compared to a PAT of Rs 829 crore registered in the corresponding quarter of the previous fiscal.

The net interest income (difference between interest earned and interest expended) for the year rose 13 percent to Rs 32,621 crore as compared to the NII of Rs 28,809 crore for FY21.

For the quarter ended March 2022, the PAT for the bank came in at Rs 1,779 crore as compared to a loss of Rs 1,047 crore incurred during the year-ago period. On a sequential basis; however, the profit for the quarter has declined 19 percent as against Rs 2,197 crore profit logged during the previous quarter.

The lender saw its NII during the quarter under review bump up by 21 percent to Rs 8,612 crore as compared to Rs 7,107 crore reported during the same period last year. On a sequential basis, the NII was flat with a marginal growth of 0.7 percent from Rs 8,552 crore registered during the previous quarter.

Global advances during the year grew by 8.9 percent on year and by 6 percent on quarter to Rs 8,18,120 crore.

The domestic advances also grew at a healthy 6.7 percent on year and 4.6 percent sequentially. The organic retail advances grew by ~17 percent and were led by growth in home loan (11.3 percent), personal loan (108 percent), auto loan (19.5 percent) and education loan (16.7 percent). The agriculture loan portfolio grew by 10.3 percent YoY to Rs 1,09,796 crore while the organic MSME portfolio grew by 5.4 percent on year to Rs 96,863 crore.

The deposits and savings also witnessed robust growth of high single to low double digits on a YoY basis.

The operating income for the year at Rs 44,106 crore improved by 5.7 percent on year as the operating profit witnessed a growth of 5.6 percent to Rs 22,389 crore.

The net interest margin for the quarter witnessed a healthy growth of 272 bps on year to 3.08 percent.

The bank was able to improve upon its return ratios of Return on Assets (ROA) and Return on Equity (ROE).

The ROA improved to 0.60 percent for the reported year from 0.07 percent in FY21 while ROE surged by 1016 bps YoY to 11.66 percent for FY22.

The bank worked upon its asset quality and the effect was evident in the improved NPA (non-performing assets) ratios.

Gross NPA Ratio for the quarter reduced by 226 bps to 6.61 percent compared to 8.87 percent in during the year ago quarter.

The net NPA ratio for the quarter improved from 3.09 percent during the same period a year ago to 1.72 percent for the reported quarter.

The slippages for the year at 1.61 percent were well under control and the credit cost for the year stood at 1.95 percent.

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Bank of Baroda(BoB) Net profit more than doubles in Q3

  

State-owned Bank of Baroda reported over two-fold jump in its net profit at Rs 2,197 crore in the quarter ended December 2021 on higher net interest income (NII) and lower provisions. The bank's net profit was at Rs 1,061 crore in the year-ago period.

The bank's operating profit also rose, albeit by a modest 8 per cent, to Rs 5,483 crore against Rs 5,084 crore. A 64 per cent fall in treasury income at Rs 499 crore dented the rise in operating profit.

Net interest margin – a key profitability measure – was at 3.13 per cent for the December quarter against 2.77 per cent over the same period last year. Net interest income (NII) -- the difference between interest earned and interest expended -- rose 14.4 per cent to Rs 8,552 crore.

Other income, which includes fee and treasury earnings, was 13.5 per cent lower at Rs 2,519 crore.

Provisions and contingencies fell 27 per cent year-on-year to Rs 2,507 crore against Rs 3450 crore.

The lender's asset quality improved with gross non-performing assets (NPAs) falling to 7.25 per cent at the end of December against 8.48 percent a year prior to that. Net NPA was at 2.25 per cent against 2.39 per cent.

The bank saw fresh slippages of Rs 2,830 crore in the December quarter while it recovered Rs 2,032 crore and upgraded Rs 1,272 crore from NPA accounts. It wrote off loans amounting to Rs 3,694 crore.

Its gross advances rose 3.56 per cent year-on-year to Rs 7.72 lakh crore

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Bank of Baroda Q2 results: Net profit rises 24%

 

Bank of Baroda reported a 24 per cent growth in standalone net profit mainly due to a 23 per cent increase in other income which includes fees and bad loan recoveries and helped by a fall in provisions as bad loans decreased year on year.

Net Profit of Rs 2,088 crore in the quarter ended September 2021 from Rs 1,679 crore a year earlier. Other income increased to Rs 3,579 crore from Rs 2910 crore last year.

The rise in other income made up for the tepid growth in net interest income (NII) which is the main income the bank earns by giving loans. NII increased 2 per cent to Rs 7566 crore largely as the cost of deposits fell to 3.52 per cent in September 2021 from 3.99 per cent a year ago and covered up for a 6 per cent fall in total interest earned.

A 2 per cent year-on-year fall in provisions also helped the bank's bottom line. Provisions fell to Rs 2754 crore from Rs 2811 crore a year ago and was lower than the Rs 4005 crore reported in June 2021.

Gross NPA ratio improved to 8.11 per cent in September 2021 from 9.14 per cent a year ago.
CEO Sanjiv Chadha said the worst of slippages was over and asset quality trends will only become better.

“We had guided for credit costs of 1.5% to 2% with likely trends on the lower of the range as we are sticking to our guidance this year ... credit costs have come down, recoveries have improved and margins have been steady,” Chadha said.

Recoveries increased to 3,246 crore including 1,246 crore from written-off accounts and higher than the total recoveries of 1,981 crore reported in the same quarter last year. As with other major banks, BoB was helped by a 877-crore recovery from DHFL.

Total loan book increased 2% to 7.34 lakh crore from 7.19 lakh crore a year earlier mainly due to a 10% rise in retail loans led by a 33% growth in personal loans and a 23% growth in auto loans. Corporate loan book remained flat after a 10% drop in the first quarter ended June.

Chadha said though the corporate growth has been tepid for more than a year, he expects some demand to come in the second half of the fiscal as sectors like cement, steel, green energy and electric vehicles expand capacities.

Retail mortgages make up 64% of the bank’s 1.35 lakh total retail loans with high growth businesses like personal loans making less than 5% of the book.

Chadha expects the bank’s loan growth to be close to double digits this year led by growth in retail loans and the bank will continue to grow the high-risk auto and personal loan businesses with caution using credit appraisals, and will have a preference for its own customers than outsiders.

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Bank of Baroda(BoB) posts net profit in Q1; NII rises 16%

 

State-owned Bank of Baroda (BoB) on Saturday reported a standalone profit of Rs 1,208.63 crore during the quarter ended June 2021, helped by decline in bad loans provisioning.

The bank had posted a net loss of Rs 864 crore in the same quarter a year ago.

Total income moderated marginally to Rs 20,022.42 crore from Rs 20,312.44 crore in the same quarter a year ago, BoB said in a regulatory filing.

The bank's asset quality improved with the gross non-performing assets (NPAs) falling to 8.86 per cent of the gross advances as on June 30, 2021, from 9.39 per cent by the end-June 2020. However, net NPA ratio rose to 3.03 per cent from 2.83 per cent as on June 30, 2020, the bank said.

As a result, total provisions and contingencies for the quarter eased to Rs 4,111.99 crore from Rs 5,628 crore a year ago.

Provisioning Coverage Ratio including floating provision stood at 83.14 per cent as on June 30, 2021.

A penalty of Rs 41.75 lakh has been imposed on the bank by Reserve Bank of India for the quarter ended June 30, 2021, it said.

As per the Reserve Bank of India (RBI) circular, the bank has opted to provide the liability for frauds over a period of four quarters, it said.

Accordingly, the carry forward provision as on June 30, 2021 is Rs 349.45 crore which is to be amortised in the subsequent quarters by the bank, it said.

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Bank of Baroda(BoB) Q4 reports net loss in Q4

 

Bank of Baroda today reported a net loss of Rs 1,047 crore due to a sharp rise in provisions for bad loans in the quarter and deterioration in asset quality on a reported basis.

Analysts had expected the state-owned bank to report a net profit of Rs 1,042.6 crore for the reported quarter.

The bank’s provisions for bad loans rose 44 per cent on-year during the quarter to Rs 4,593 crore. At the same time, the lender’s gross non-performing assets ratio stood at 8.87 as against 8.48 a quarter ago on a reported basis. The net NPA ratio was at 3.09 per cent as compared to 2.39 per cent reported in the previous quarter.

The lender’s bottomline was also affected by a sharp rise in tax expense to Rs 3,726 crore as against a tax write-back of Rs 2,230 crore in the year-ago quarter.

The public sector lender’s net interest income in the quarter rose 4.5 per cent on-year to Rs 7,107 crore. The non-interest bearing business had a stellar quarter as income rose 71 per cent on-year to Rs 4,848 crore.

Bank of Baroda’s pre-provision operating profit rose 27.3 per cent on-year to Rs 6,266 crore for the quarter ended March. Net interest margin of the lender deteriorated on-year by three basis points to 2.73 per cent.

The lender’s loan book grew 4.9 per cent on-year during the quarter to Rs 6.4 lakh crore, while deposits climbed 6.2 per cent to Rs 8.6 lakh crore. However, the retail loan portfolio showed firm growth of 14.4 per cent on-year to Rs 1.2 lakh crore

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Bank of Baroda(BoB) posts net profit on lower provisions

Bank of Baroda(BoB) on Wednesday reported a Rs 1,061-crore profit for the quarter ended December, against a net loss of Rs 1,407 crore a year ago, as provisions fell 45% year-on-year (y-o-y) to Rs 3,957 crore.

Net interest income (NII) – the difference between interest earned and interest expended – stood at Rs 7,749 crore, was up 9% y-o-y. The net interest margin (NIM) rose 11 basis points (bps) sequentially to 3.07%. The operating profit rose 12.8% y-o-y to Rs 5,591 crore.

The gross NPA ratio at the end of December stood at 8.48%, down 66 bps sequentially. Net NPAs were at 2.39%, 12 bps lower than 2.51% at the end of the September quarter.

BoB has made contingent provisions of Rs 1,522 crore as a prudent measure. Total additional provisions as on December 31 stood at Rs 1,891.5 crore. The provision coverage ratio (PCR) improved to 85.46% from 77.77% a year ago.

The management said any worsening in the asset quality is likely to be led by the retail and MSME segments. Sanjiv Chadha, MD and CEO, said over the last two-three months, there has been a sharp recovery and the main beneficiary of this recovery has been the corporate piece. The return of demand, profits and pricing power have accrued mainly to companies and that adds resilience to the corporate book. Also, companies have already been through a phase of stress in recent years. So, the ones that remain standing are more resilient and offer comfort to the bank.

“There will be stress in some parts of the book, but we have fair handle in terms of how much is there and what are the likely implications. But, in terms of the known-unknowns, things which have not fully played out yet that is where the MSME and retail are,” Chadha said, adding, “Particularly, retail is the kind of book which was not being stress-tested. The kind of stress we are seeing now is something which is unprecedented, and therefore, it is likely that there may be some slippages which you cannot anticipate.”

It has become harder to foresee or address retail stress, Chadha said, because a glance at the bank’s restructured book shows that 80% of it has come from corporates and the retail accounts for a very small figure. “Therefore, we have not been able to address whatever stress might be there at least through the restructuring mode – which means that either people will actually start paying up on time [or] there is a fair possibility that some stress will come through NPAs.”

At the same time, BoB is not too worried about major retail slippages because unsecured retail loans constitute less than 1% of its loan book. More than 70% of the retail book is made up of home loans.

Domestic advances grew 8.31% y-o-y to Rs 6.33 lakh crore at the end of December. The current and savings account (CASA) ratio improved 240 bps y-o-y to 41.2% in Q3FY21. Domestic deposits rose 6.74% y-o-y to Rs 8.35 lakh crore. The bank expects to clock a loan growth of 7-8% in FY21 and raise Rs 2,000-4,000 crore through a qualified institutional placement (QIP) in the current quarter.

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