Bank Of Baroda Reports Robust Growth Of 38.2% In Its 9MFY24, Net Profit To INR 12,902 Crore

Bank of Baroda reports a robust growth of 38.2% in its 9MFY24 Net Profit to INR 12,902 crore

Key Highlights
• Global Business grew by 10.7% to reach INR 22,94,627 crore as of 31st December 2023
• Net Profit for Q3FY24 stands at INR 4,579 crore, growth of 18.8% YoY.
• Return on Assets (ROA) for the quarter is 1.20% and 1.15% for 9MFY24.
• Return on Equity (ROE) higher by 168 bps YoY at 18.70% for 9MFY24.
• The growth in profitability was supported by healthy Operating Income growth of 18.8% YoY in 9MFY24.
• Operating income growth was augmented by ~1.5x growth in Non-Interest Income to INR 10,304 crore in 9MFY24.
• Healthy growth in income coupled with subdued increase in Opex has resulted in healthy Operating profit growth of 21.7% YoY for 9MFY24.
• Cost to Income ratio has also reduced by 123 bps YoY to 47.13% for 9MFY24.
• Global Net Interest Margin (NIM) improves by 3 bps sequentially and stands at 3.10% in Q3FY24 as against 3.07% in Q2FY24.
• Net Interest Margin (NIM) for 9MFY24 is 3.14%.
• BOB has witnessed significant improvement in its Asset quality with reduction in GNPA by 145 bps YoY to 3.08% from 4.53% in Q3FY23.
• Bank’s NNPA reduced by 29 bps YoY to 0.70% in Q3FY24 as against 0.99% in Q3FY23.
• BOB’s balance sheet remains robust with healthy Provision Coverage Ratio (PCR) of 93.39% with TWO & at 77.70% without TWO.
• Credit cost remains below 1% at 0.69% for 9MFY24 & 0.39% for the quarter.
• Healthy Liquidity Coverage Ratio (LCR) at 133% as on 31st Dec 2023.
• BOB’s Global Advances registered a growth of 13.6% YoY in Q3FY24 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 22%, driven by growth in high focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), Education Loan (18.3%).

Profitability

 BOB reported a standalone Net Profit of INR 4,579 crore in Q3FY24 as against a profit of INR 3,853 crore in Q3FY23. Net Profit for 9MFY24 stands at INR 12,902 crore (+38.2% YoY) as against INR 9,334 crore in 9MFY23.
 Net Interest Income (NII) grew by 2.6% YoY to INR 11,101 crore in Q3FY24. NII for 9MFY24 registered a growth of 10.4% and stands at INR 32,929 crore.
 Non-Interest Income for 9MFY24 stands at INR 10,304 crore up by 57.1% YoY
 Global NIM improves by 3 bps sequentially and stands at 3.10% in Q3FY24. Global NIM for 9MFY24 stands at 3.14%.
 Yield on Advances increased to 8.51% in Q3FY24 as against 7.78% in Q3FY23.
 Cost of Deposits increased to 4.96% in Q3FY24 as against 4.01% in Q3FY23.
 Operating Income for Q3FY24 stands at INR 13,912 crore. Operating Income for 9MFY24 stands at INR 43,233 crore registering a growth of 18.8%.
 Operating Profit for Q3FY24 stands at INR 7,015 crore. (Excluding impact of MTM, quarterly Operating Profit would have been INR 7,482 crore for Q3FY23 and INR 7,307 crore for Q3FY24)
 Operating Profit for 9MFY24 increased by 21.7% to INR 22,859 crore.
 Cost to Income ratio stands at 49.57% for Q3FY24.
 Return on Assets (annualised) improved to 1.20% in Q3FY24 from 1.13% in Q3FY23.
 Return on Equity (annualised) for Q3FY24 stands at 19.91%. RoE increased by 168 bps YoY to 18.70% for 9MFY24
 For the consolidated entity, Net Profit stood at INR 4,789 crore in Q3FY24 as against INR 4,306 crore in Q3FY23.

Asset Quality

 The Gross NPA of the Bank reduced by 22.8% YoY to INR 32,318 crore in Q3FY24 and Gross NPA Ratio improved to 3.08% in Q3FY24 from 4.53% in Q3FY23.
 The Net NPA Ratio of the Bank stands at a low 0.70% in Q3FY24 as compared with 0.99% in Q3FY23.
 The Provision Coverage Ratio of the Bank stood at 93.39% including TWO and 77.70% excluding TWO in Q3FY24.
 Slippage ratio declined to 1.06% for 9MFY24 as against 1.22% in 9MFY23. Slippage ratio for the quarter is below 1% at 0.95% for Q3FY24 as against 1.05% in Q3FY23.
 Credit cost stands at 0.39% for Q3FY24 and 0.69% for 9MFY24
Capital Adequacy
 CRAR of the Bank stands at 14.72% in Dec’23. Tier-I stood at 12.67% (CET-1 at 11.11%, AT1 at 1.56%) and Tier-II stood at 2.05% as of Dec’23.
 The CRAR and CET-1 of consolidated entity stands at 15.14% and 11.62% respectively
 The Liquidity Coverage Ratio (LCR) consolidated stands at 133%.

Business Performance

 Global Advances of the Bank increased to INR 10,49,327 crore, +13.6% YoY.
 Domestic Advances of the Bank increased to INR 8,62,086 crore, +13.4% YoY.
 Global Deposits increased by 8.3% YoY to INR 12,45,300 crore.
 Domestic Deposits increased by 6.3% YoY to INR 10,67,371 crore in Dec’23.
 International Deposits grew by 22.1% on a YoY basis to INR 1,77,929 crore in Dec’23.
 Organic Retail Advances grew by 22%, led by growth in high focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), Education Loan (18.3%) on a YoY basis.
 Agriculture loan portfolio grew by 12.6% YoY to INR 1,34,240 crore.
 Total Gold loan portfolio (including retail and agri.) stands at INR 45,074 crore, registering a growth of 28.3% on a YoY basis.
 Organic MSME portfolio grew by 12.6% YoY to INR 1,15,995 crore.
 Corporate advances registered a growth of 10.2% YoY and stands at INR 3,62,813 crore.