Bank of Baroda's Q2 Net Profit Rises By 24.4% YoY, To Rs. 2,087.85 Crore

India's public sector bank, Bank of Baroda reports a hike of net profit by 24.4% YoY to Rs. 2,087.85 crore in Q2, the quarter ended 30 September. The bank earlier reported a net profit of Rs. 1,209 crore in Q1, this fiscal.

Growth in other income

This quarter's gain was backed by higher other income of the bank. Other income includes fees from third-party products, and treasury income, and others, that have increased by 23% YoY to Rs. 3,579 crore. In the Q2, Bank of Baroda's global gross advances also increased 2.10% YoY to Rs. 7.34 lakh crore.

Loans and NPA

On the other hand, retail loans, amounting to Rs. 1.23 lakh crore of total loans has increased by 10.3% on YoY. The banks' corporate loans which amount to 2.73 lakh crore hiked by 0.3%. The bank's asset quality has gained in Q2 with the gross NPAs dropping to Rs. 59,504 crore till September-end from Rs. 65,698 crore in the previous year. The net NPA ratio has increased 32 basis points YoY to 2.83% till September 30.

Net interest income (NII)

Net interest income, which is the 'difference between interest earned and expended', has hiked by 2.1% YoY to Rs. 7,566 crore in Q2, due to slow loan growth. The bank's global net interest margin has also gained to 2.85% in Q2 from 2.78% in the same period, earlier fiscal.

Liabilities and CASA

Regarding the liabilities, the Bank of Baroda's total deposits was Rs. 9.59 lakh crore till the end of September, increased by 0.5% YoY. Global low-cost Current Account and Savings Account (CASA) ratio has been at 41.70% till September 30, which has increased by 36.71%, than the previous year. Overall Domestic CASA grew by 13.01% YoY.

Bank's statement

Sanjiv Chadha, MD and CEO of Bank of Baroda commented, "Since big businesses are returning to normalcy and companies are starting to make maximum capacity utilization, the outlook for corporate credit growth looks positive." Chadha also sounded affirmative as he said Bank of Baroda's credit growth is expected to be in the range of 7-10% in FY22, in line with the industry.

Bank of Baroda's share price stood at Rs. 101.80 gaining 1.14% on November 11, till 9.48 AM IST.