Bank of Baroda Q1 Results: PAT Rises By 88% YoY To Rs 4,070 Crore Driven By Robust Operating Income

Public sector lender, Bank of Baroda witnessed a strong growth of 87.7% in net profit to Rs 4,070 crore for the quarter ending June 30, 2023, compared to a profit of Rs 2,168 crore in the same quarter a year ago. This robust growth in profitability was supported by healthy operating income growth of 42.9% YoY in Q1FY24. Also, net interest income (NII) registered a strong growth led by double-digit growth in loan books, while the lender's asset quality saw sustainable improvement.

NII, which is the difference between interest earned and expended, came in at Rs 10,997 crore, rising by 24.4% in Q1FY24 as against Rs 8,838 crore in Q1 of the previous fiscal. The lender said, "sustained NII growth is attributable to growth in advances of 18.0% (YoY) coupled with traction in Net Interest Margins (NIM), which grew 25 bps YoY at 3.27%."

BoB's global advances came in at Rs 9,90,988 crore, posting a strong YoY growth of 18.0% in Q1FY24 led by robust retail loan book growth. Bank's organic Retail Advances grew by 24.8%, driven by growth in high-focus areas such as Auto Loans (22.1%), Home Loan (18.4%), Personal Loan (82.9%), Mortgage Loan (15.8%), Education Loan (20.8%).

Also, global deposits increased by 16.2% YoY to Rs 11,99,908 crore in the quarter. The lender recorded 15.5% YoY growth in domestic deposits, while 21% YoY growth was seen in international deposits. Additionally, domestic CASA deposits registered a growth of 5.5% YoY and stands at Rs 4,23,600 crore.

Further, total provisions and contingencies stood at Rs 1,946 crore in the quarter, up by 15.5% YoY. The Provision Coverage Ratio of the Bank stood at 93.23% including TWO and 78.52% excluding TWO in Q1FY24.

Meanwhile, the lender witnessed significant improvement in its Asset quality with a reduction in gross non-performing assets (GNPA) by 275 bps YoY to 3.51%. Further, the bank's net NPA improved to 0.78% with a reduction of 80 bps YoY.

"This strong and sustainable improvement in asset quality has resulted in a 5 bps YoY decline
in Credit Cost at 70 bps for Q1FY24. Excluding prudential provisions credit cost would have been 44 bps in Q1FY24," BoB added.

The PSU bank achieved a total business of Rs 21,90,896 crore as of June 30, 2023, registering a growth of 17.0% YoY.

On Friday, BoB's share price ended at Rs 191.45 apiece, down by 0.93% on BSE.

The stock will react to Q1 results on Monday.