BoB Q3 Results: Net Profit Climbs 18.8% To Rs 4,579 Cr; NII Stable At Rs 11,101 Cr

The financial results for the quarter that ended on December 31, 2023, were released by Bank of Baroda on Wednesday, January 31. With a growth of 18.8% YoY, BOB recorded a standalone net profit of Rs 4,579 crore in Q3FY24 compared to a profit of Rs 3,853 crore in Q3FY23 whereas operating profit for Q3FY24 stands at Rs 7,015 crores. Net Interest Income (NII) climbed to Rs 11,101 crore in Q3FY24, a 2.6% YoY growth.

Global NIM increases by 3 bps in order, reaching 3.10% in Q3FY24. The bank said that, compared to 7.78% in Q3FY23, its yield on advances improved to 8.51% in Q3FY24. In Q3FY24, the bank's operating income was Rs 13,912 crore, while its Cost of Deposits climbed to 4.96% from 4.01% in Q3FY23.

The bank said that its Q3FY24 cost-to-income ratio is 49.57%, while its annualised Return on Assets increased to 1.20% from 1.13% in Q3FY23. As of Q3FY24, the bank's annualised Return on Equity is 19.91%. Net Profit on a consolidated basis of the bank was Rs 4,789 crore in Q3FY24 compared to Rs 4,306 crore in Q3FY23.

BoB Asset Quality

In Q3FY24, the bank's Gross Non-Performing Asset (NPA) decreased by 22.8% YoY to Rs 32,318 crore, and its Gross Non-Performing Asset Ratio surged to 3.08% from 4.53% in Q3FY23. As of Q3FY24, the bank's Net NPA Ratio is at a low of 0.70% which was 0.99% in Q3FY23. In Q3FY24, the bank's provision coverage ratio was 93.39%. The quarter's slippage ratio is less than 1%, at 0.95% for Q3FY24 compared to 1.05% for Q3FY23. The credit cost for Q3FY24 was 0.39%.

BoB Business Performance

The bank's domestic advances rose to Rs 8,62,086 crore, or 13.4% YoY. Domestic deposits reached Rs 10,67,371 crore in December of 23-a 6.3% YoY growth. On a year-on-year basis, organic retail advances increased by 22%, driven primarily by growth in high-priority sectors such Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), and Education Loan (18.3%). YoY, the portfolio of agricultural loans increased by 12.6% to Rs 1,34,240 crore. At Rs 45,074 crore, the total gold loan portfolio (including retail and agricultural) represents an overall rise of 28.3%. The portfolio of organic MSME rose 12.6% year on year to Rs 1,15,995 crore. Corporate advances are currently at Rs 3,62,813 crore, representing a YoY rise of 10.2%.

BoB Capital Adequacy Ratios

As of December 23, the bank's CRAR was 14.72%. During Q3FY24, Tier-I was 12.67% (with CET-1 at 11.11% and AT1 at 1.56%) and Tier-II was 2.05%. The consolidated entity's CRAR and CET-1 are 15.14% and 11.62%, respectively. The consolidated liquidity coverage ratio (LCR) was 133%.