Bank of Baroda Q2 Results: Net Profit Climbs 28% On Healthy Operating Income

The public sector lender Bank of Baroda (BoB) on Saturday released its financial results for the quarter ended 30th September 2023. In Q2FY24, BOB recorded a standalone net profit of INR 4,253 crore, up from INR 3,313 crore in Q2FY23. This is a YoY growth of 28.40%. The bank said that in Q2FY24, its Net Interest Income (NII) climbed by 6.5% YoY to INR 10,831 crore. The NII for H1FY24 climbed by 14.8% and is now INR 21,827 crore. Compared to Q2FY23, Non-Interest Income soared about two times to INR 4,171 crore, from INR 1,826 crore. For H1FY24, the non-interest income remains INR 7,493 crore.

According to the bank, its operating income for the second quarter of FY24 was Rs 15,002 crore, a 25% YoY increase. Operating Income climbed by 33.2% in H1FY24. With a YoY growth of 33%, its operating profit for Q2FY24 was INR 8,020 crore. Operating Profit reached INR 15,844 crore for H1FY24, a 50.1% rise. In Q2FY24, the bank's cost-to-income ratio decreased to 46.54% from 49.74% in Q2FY23. The annualized return on assets (ROA) climbed from 1.01% in Q2FY23 to 1.14% in Q2FY24. The annualized return on equity for Q2FY24 was 19.74%, up 18 basis points year on year. Net Profit for the consolidated entity was INR 4,394 crore in Q2FY24 compared to INR 3,400 crore in Q2FY23.

Regarding asset quality, the bank said that in Q2FY24, its Gross Non-Performing Asset (NPA) dropped by 26.8% YoY to INR 33,968 crore and that its Gross Non-Performing Asset (GPA) Ratio improved to 3.32% from 5.31% in Q2FY23. In Q2FY24, the Bank's Net NPA Ratio was 0.76%, down from 1.16% in Q2FY23. In H1FY24, the bank's slippage ratio dropped to 1.28% from 1.53% in H1FY23.

For Q2FY24, the bank's credit cost was 0.92%. As of September 23, the Bank's CRAR stands at 15.30 per cent. BoB said that its domestic advances climbed to INR 8,34,723 crore, +16.5% YoY, while its global advances increased to INR 10,24,501 crore, +17.3% YoY.

In a stock exchange filing, Bank of Baroda reported that as of September 23, its domestic deposits had grown by 12.0% YoY to INR 10,74,114 crore. For the past five quarters, BOB has regularly produced ROA of above one per cent and ROE of about 20%. In Q2FY24, ROE was 19.74% and ROA was 1.14%. The bank reported strong operating profit growth of 33% YoY for Q2FY24, attributable to a moderate rise in Opex and strong growth in income. As of September 30, 2023, the bank's total business was INR 22,74,148 crore, representing a YoY rise of 15.8%.