Bank of Baroda announces Financial Results for the Quarter and Year ended 31st March 2022

Net profit for FY2022 grows 9x to reach INR 7,272 crore

Key Highlights
●       Bank of Baroda (BOB) Net profit for FY2022 grows 9x to reach INR 7,272 crore
●       Net profit in (Q4FY22) stood at INR 1,779 crore
●       Advances grew by 8.9% YoY in FY22
●       Organic Retail Advances grew by ~17%, led by growth in high focus areas such as Home Loan (11.3%), Personal Loan (108%), Auto Loan (19.5%), Education Loan (16.7%)
●       Domestic CASA ratio of the bank improved by 137 bps YoY to 44.24%.
●       GNPA at 6.61% a reduction of 226 bps YoY
●       NNPA at 1.72% a reduction of 137 bps YoY in FY22.
●       Provision coverage ratio (PCR) at 75.28% w/o TWO
●       Net Interest Margins improved by 32 bps YoY to 3.03% in FY22.
●       NIM for Q4FY22 was 3.08% (an increase of 36 bps compared to Q4FY21)
●       Healthy Capital base – CRAR improved to 15.98% in Mar’22 from 14.99% in Mar’21
The Board of Directors have recommended a dividend of INR 1.20 per equity share (60%) for the year ended March 31 2022 (subject to necessary approvals).

Business Performance

  • Global Advances of the Bank increased to INR 8,18,120 crore, +8.9% YoY and 6% QoQ as of Mar’22.
  • Domestic Advances of the Bank increased to INR 6,84,153 crore, +6.7% YoY and 4.6% QoQ as of Mar’22.
  • Global Deposits increased by 8.2% YoY to INR 10,45,939 crore. Domestic Deposits increased by 8.0% YoY to INR 9,27,011 crore in Mar’22.
  • Domestic Current Account Deposits stands at INR 68,780 crore, registering a robust growth of 11.6% on a YoY basis.
  • Domestic Savings Bank Deposits grew by 11.4% to INR 3,41,343 crore. Overall Domestic CASA registered a growth of 11.4% on a YoY basis.
  • Organic Retail loan portfolio of the Bank grew by 16.8% led by growth in Personal loan portfolio by 108.1%, Auto loan by 19.5% and Education loan by 16.7% on a YoY basis.
  • Agriculture loan portfolio grew by 10.3% YoY to INR 1,09,796 crore.
  • Organic MSME portfolio grew by 5.4% YoY to INR 96,863 crore.

Profitability

  • Net Interest Income grew by 21.2% to INR 8,612 crore in Q4FY22 and 13.2% YoY to INR 32,622 crore in FY22. 
  • Fee Income for the year grew by 12.6% YoY at INR 6,409 crore and 5.8% YoY for the quarter to INR 1,848 crore.
  • Operating Income for FY22 registered a growth of 5.7% YoY at INR 44,106 crore.
  • Cost of Deposits reduced to 3.53% in Q4FY22 as against 3.71% in Q4FY21.
  • Operating Profit for FY22 stands at INR 22,389 crore registering a growth of 5.6% YoY.
  • Bank reported a standalone Net Profit of INR 1,779 crore in Q4FY22 as against a loss of INR 1,047 crore in Q4FY21.The Net Profit for FY22 increased to INR 7,272 crore in Mar’22 (777%) from INR 829 crore in FY21.
  • Global NIM increased to 3.08% in Q4FY22 from 2.72% in Q4FY21.
  • Return on Assets (RoA) improved to 0.60% in FY22 from 0.07% in FY21.
  • Return on Equity (RoE) increased sharply by 1016 bps YoY to 11.66%
  • For the consolidated entity, Net Profit stood at INR 7,850 crore in FY22 as against INR 1,548 crore in FY21.

Asset Quality

  • The Gross NPA of the Bank reduced to INR 54,059 crore in Q4FY22 from the level of INR 66,671 crore in Q4FY21 and Gross NPA Ratio improved to 6.61% in Q4FY22 from 8.87% in Q4FY21.
  • The Net NPA Ratio of the Bank improved to 1.72% in Q4FY22 as compared with 3.09% in Q4FY21.
  • The Provision Coverage Ratio of the Bank stood at 88.71% including TWO and 75.28% excluding TWO in Q4FY22.
  • Slippages for the year was contained at 1.61%.
  • Credit cost for the year was at 1.95%, however adjusted for prudential provisioning, pro-forma credit cost was 1.70%.

Capital Adequacy

  • CRAR of the Bank improved to 15.98% in Mar’22 from 14.99% in Mar’21. Tier-I stood at 13.49% (CET-1 at 11.74%, AT1 at 1.75%) and Tier-II stood at 2.49% as of Mar’22.
  • The CRAR and CET-1 of consolidated entity stands at 16.47% and 12.34% respectively

Business position

Particulars (INR crore)Mar 31, 2021Dec 31, 2021Mar 31, 2022YoY (%)
Domestic deposits8,58,4138,76,555 9,27,0118.0
Domestic CASA3,68,0273,88,169 4,10,12311.4
Global deposits9,66,996 9,78,03410,45,9398.2
Domestic advances6,41,0766,54,315 6,84,1536.7
Of which, retail loan portfolio (Organic)1,20,2561,28,960 1,40,39916.8
Global advances7,51,5907,71,994 8,18,1208.9
NIM Global %2.723.133.08 

Financial results for year ended 31st March 2022

Particulars (INR crore)FY21FY22YoY (%)
Interest Income70,49569,889-0.9
Interest Expenses41,68637,259-10.6
Fee Income5,6936,40912.6
Net Interest Income (NII)28,80932,62213.2
Operating Income41,74344,1065.7
Operating Expenses20,54421,7165.7
Operating Profit21,19922,3895.6*
Total Provisions (other than tax) and contingencies15,64313,002-16.9
of which, Provision for NPA Bad Debts Written-off12,40814,64018.0
Profit before Tax5,5569,38769.0
Provision for Tax4,7272,114-55.3
Net Profit8297,272777.2

*Growth in operating profit for FY’22 excluding revaluation of investment would have been 13.1%.

Financial result for Quarter ended 31st March 2022

Particulars (INR crore)Q4FY21Q3FY22Q4FY22YoY(%)
Interest Income16,68517,96318,1748.9
Interest Expenses9,5789,4119,562-0.2
Fee Income1,7471,5571,8485.8
Net Interest Income (NII)7,1078,5528,61221.2
Operating Income11,92411,07111,134-6.6
Operating Expenses5,6895,5885,499-3.3
Operating Profit6,2355,4835,635-9.6
Total Provisions (other than tax) and contingencies3,5552,5063,7365.1
of which, Provision for NPA Bad Debts Written-off4,5934,2835,20013.2
Profit before Tax2,6802,9761,899-29.1
Provision for Tax3,726779120-96.8
Net Profit-1,0472,1971,779 

Key Ratios

ParticularsMar 31, 2021Dec 31, 2021Mar 31, 2022
CRAR (%)14.99 15.4715.98 
Tier-1 (%)12.67 13.2413.49
CET-1 (%)10.9411.30 11.74
Gross NPA (%)8.877.25 6.61
Net NPA (%)3.092.25 1.72
PCR (with TWO) (%)81.80 85.9588.71

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