Mumbai: One of India’s largest banks, Bank of Baroda (BOB) announced its financial results for the last quarter ending 30th June 2023. BOB reported an 87.7% year-on-year (YOY) jump and it’s June 2023 quarter net profit stood at Rs. 4,070 crore with an operating income growth of 42.9% YOY in Q1FY24. 

In the last four quarters, BOB has consistently delivered an ROA of more than 1% and ROE of approximately 20%. Restrained increase in OPEX and strong growth in income has resulted in sturdy operating profit growth of 73% YOY for Q1FY24.

Significant improvement in Asset quality was witnessed with a reduction in GNPA by 275 bps YOY to 3.51%. With a reduction of 80 bps YOY, BOB’s NNPA improved to 0.78%. Robust and viable improvement in asset quality has resulted in 5 bps YOY decline in credit cost at 70 bps in QiFY24. 

BOB’s Retail Advances grew by 24.8% because of it’s sharp focus in areas such as Auto loans (22.1%), Home Loan (18.4%), Personal Loan (82.9%), Mortgage Loan (15.8%), Education Loan (20.8%). Banks Global Advances too registered a strong YOY growth of 18% in Q1FY24. 

As of 30th June 2023, by registering a growth of 17 % YOY, BOB achieved total business of INR 21,90,896 crore.

Profitability:

• Standalone Net Profit of INR 4,070 crore in Q1FY24 as against a profit of INR 2,168 crore in Q1FY23.
•  Net Interest Income (NII) growth of 24% YoY to INR 10,997 crore in Q1FY24. 
• Global NIM stands at 3.27% in Q1FY24, with an increase of 25 bps YoY and domestic NIM stands at 3.41% in Q1FY24, an increase of 34 bps YoY. 
• The yield on advances increased to 8.40% in Q1FY24 as against 6.58% in Q1FY23 and cost of deposits stands at 4.68% in Q1FY24 as against 3.46% in Q1FY23. Operating Income for Q1FY24 stands at INR 14,319 crore, an increase of 42.9% YoY. 
• Operating Profit for Q1FY24 stands at INR 7,824 crore, an increase of 72.8% on a YoY basis.
• Return on Assets (annualised) improved to 1.11% in Q1FY24 from 0.68% in Q1FY23 and Return on Equity (annualised) for Q1FY24 increased by 640 bps YoY to 20.03%.
• Cost to Income ratio reduced to 45.36% for Q1FY24 as against 54.81% for Q1FY23 and cost to Income ratio (ex-treasury) by 168 bps YoY to 47.41% for Q1FY24. 

Asset Quality

• Gross NPA of the Bank reduced by 33.8% YoY to INR 34,832 crore in Q1FY24 and Gross NPA Ratio improved to 3.51% in Q1FY24 from 6.26% in Q1FY23.
• The Net NPA Ratio of the Bank stands at a record low of 0.78% in Q1FY24 as compared with 1.58% in Q1FY23.
• The Provision Coverage Ratio of the Bank stood at 93.23% including TWO and 78.52% excluding TWO in Q1FY24. 
• Credit cost for the Q1FY24 stands at 0.70%. Excluding prudential provisions, credit cost would be 44 bps in Q1FY24.
• Slippage ratio declined to 1.05% for Q1FY24 as against 1.71% in Q1FY23. 

Capital Adequacy

• CRAR of the Bank stands at 15.84% in Jun’23. Tier-I stood at 13.64% (CET-1 at 11.94%, AT1 at 1.70%) and Tier-II stood at 2.20% as of Jun’23. 
• The CRAR and CET-1 of consolidated entity stands at 16.31% and 12.51% respectively.

• The Liquidity Coverage Ratio (LCR) consolidated stands at 143.6%.

Other Details

• Global Advances of the Bank increased to INR 9,90,988 crore, +18.0% YoY and Domestic Advances of the Bank increased to INR 8,12,626 crore, +16.8% YoY. 
• Global Deposits increased by 16.2% YoY to INR 11,99,908 crore and Domestic Deposits increased by 15.5% YoY to INR 10,50,306 crore in Jun’23.
• Organic MSME portfolio grew by 12.7% YoY to INR 1,09,220 crore. 

Financial result for Quarter ended 30th June 2023

Business position

Key Ratios