Bank of Baroda’s (BoB) first-quarter standalone net profit jumped 88 per cent YoY to ₹4,070 crore, buoyed by a sharp rise in other income, including treasury gains, healthy growth in net interest income even as provisions towards bad, and standard loans went up.
The public sector bank had reported a net profit of ₹2,168 crore in the year ago quarter.
Net interest income (difference between interest earned and interest expended) was up 24 per cent YoY to ₹10,997 crore.
Other income, comprising fee-based income, treasury income and other non-interest income, shot up 181 per cent YoY to ₹3,322 crore.
Provisions for non-performing assets (NPA) and bad debts written-off were higher at ₹1,693 crore (Rs 1,560 crore). The Bank made provisions for standard advances aggregating ₹144 crore against a write-back of ₹120 crore a year back.
Global net interest margin (NIM) rose to 3.31 per cent from 3.02 per cent in the year ago quarter.
“For two consecutive quarters, we have maintained a net profit above ₹4,000 crore. The current quarter’s net profit is almost 30 per cent of FY2023’s full-year net profit….we will maintain NIM at about 3.30 per cent,” said Debadatta Chand, MD & CEO.
Global advances rose 18 per cent YoY to stand at ₹9,90,988 crore as on June-end 2023, with domestic and international advances growing 16.8 per cent (to ₹8,12,626 crore) and 23.6 per cent (₹1,78,362 crore), respectively.
Within domestic advances, retail advances reported the highest growth of 24.8 per cent, followed by agriculture (15.1 per cent), corporate (14.6 per cent) and MSME (12.7 per cent).
Chand emphasised that the Bank continues to maintain its guidance of growing overall credit 1-2 per cent higher than the industry average, with retail book too expected to grow 4-5 per cent above industry average.
Fees & float
“For corporate loans, we have introduced the concept of share of wallet. FY24 will be the year of fees & float, with the focus being on extending cash management service to mid-corporates and MSMEs, wealth side of business, and commision and fee business,” he said.
Global deposits were up 16.2 per cent to stand at ₹11,99,908 crore, with domestic and international deposits increasing 15.5 per cent (to ₹10,50,306 crore) and 21 per cent (to ₹1,49,602 crore).
Gross NPAs declined to 3.51 per cent of gross advances against 3.79 per cent in the preceding quarter. Net NPAs declined to 0.78 per cent against 0.89 per cent.