Bank of Baroda (BOB) quarterly Net profit higher by 28.4% YoY at INR 4,253 crore in Q2FY24. Net Profit for H1FY24 grew by 51.8% to INR 8,323 crore.
BOB has delivered ROA of more than 1% and ROE around 20%, consistently for last 5 quarters. ROA for Q2FY24 stands at 1.14% and ROE at 19.74%.
The growth in profitability was supported by healthy Operating Income growth of 25% YoY in Q2FY24.
Operating income growth was augmented by ~2x YoY growth in Non-Interest Income in Q2FY24.
Non-Interest Income growth in Q2FY24 was driven by robust YoY growth in Fee Income (+31.7%), Trading Gains (+69.5%) and Recovery from TWO (~2x)
Strong growth in Income coupled with subdued increase in Opex has resulted in robust Operating profit growth of 33% YoY for Q2FY24. Operating profit for H1FY24 higher by 50.1% YoY.
The Bank has been able to effect a reduction in the Cost to Income ratio by 320 bps YoY to 46.54% for Q2FY24. Cost to Income ratio for H1FY24 is also declined by 608 bps YoY to 45.97%.
BOB has witnessed significant improvement in its Asset quality with reduction in GNPA by 199 bps YoY to 3.32%. Bank’s NNPA improved to 0.76%, a reduction of 40 bps YoY.
BOB’s balance sheet remained robust with healthy Provision Coverage Ratio (PCR) of 93.16% with TWO & at 77.64% without TWO.
Credit cost remains below 1% at 0.92% for Q2FY24.
BOB’s Global Advances registered a strong YoY growth of 17.3% in Q2FY24 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 22.2%, driven by growth in high focus areas such as Auto Loan (21.1%), Home Loan (16.1%), Personal Loan (67.2%), Mortgage Loan (13.3%), Education Loan (18.3%).
Bank achieved a total business of INR 22,74,148 crore as of 30th Sep 2023, registering a growth of 15.8% YoY.
BOB reported a standalone Net Profit of INR 4,253 crore in Q2FY24 as against a profit of INR 3,313 crore in Q2FY23. Net Profit for H1FY24 stands at INR 8,323 crore (+51.8% YoY) as against INR 5,482 crore in H1FY23.
Net Interest Income (NII) grew by 6.5% YoY to INR 10,831 crore in Q2FY24. NII for H1FY24 registered a growth of 14.8% and stands at INR 21,827 crore.
Non-Interest Income grew ~2x to INR 4,171 crore in Q2FY24 as against INR 1,826 crore in Q2FY23. Non-Interest Income for H1FY24 stands at INR 7,493 crore.
Global NIM stands at 3.07% in Q2FY24.
Yield on Advances increased to 8.43% in Q2FY24 as against 7.22% in Q2FY23.
Cost of Deposits increased to 4.92% in Q2FY24 as against 3.59% in Q2FY23.
Operating Income for Q2FY24 stands at INR 15,002 crore, increase of 25% YoY. Operating Income for H1FY24 grew by 33.2%.
Operating Profit for Q2FY24 stands at INR 8,020 crore, increase of 33% on a YoY basis. Operating Profit for H1FY24 increased by 50.1% to INR 15,844 crore.
Cost to Income ratio reduced to 46.54% for Q2FY24 as against 49.74% for Q2FY23.
Return on Assets (annualised) improved to 1.14% in Q2FY24 from 1.01% in Q2FY23.
Return on Equity (annualised) for Q2FY24 increased by 18 bps YoY to 19.74%.
For the consolidated entity, Net Profit stood at INR 4,394 crore in Q2FY24 as against INR 3,400 crore in Q2FY23.
The Gross NPA of the Bank reduced by 26.8% YoY to INR 33,968 crore in Q2FY24 and Gross NPA Ratio improved to 3.32% in Q2FY24 from 5.31% in Q2FY23.
The Net NPA Ratio of the Bank stands at 0.76% in Q2FY24 as compared with 1.16% in Q2FY23.
The Provision Coverage Ratio of the Bank stood at 93.16% including TWO and 77.64% excluding TWO in Q2FY24.
Slippage ratio declined to 1.28% for H1FY24 as against 1.53% in H1FY23.
Credit cost for the Q2FY24 stands at 0.92%.
CRAR of the Bank stands at 15.30 % in Sep’23. Tier-I stood at 13.19% (CET-1 at 11.57%, AT1 at 1.62%) and Tier-II stood at 2.11% as of Sep’23.
The CRAR and CET-1 of consolidated entity stands at 15.74% and 12.11% respectively
The Liquidity Coverage Ratio (LCR) consolidated stands at 132%.
Global Advances of the Bank increased to INR 10,24,501 crore, +17.3% YoY.
Domestic Advances of the Bank increased to INR 8,34,723 crore, +16.5% YoY.
Global Deposits increased by 14.6% YoY to INR 12,49,647 crore.
Domestic Deposits increased by 12.0% YoY to INR 10,74,114 crore in Sep’23.
International Deposits grew by 33.8% on a YoY basis to INR 1,75,533 crore in Sep’23.
Organic Retail Advances grew by 22.2%, led by growth in high focus areas such as Auto Loan (21.1%), Home Loan (16.1%), Personal Loan (67.2%), Mortgage Loan (13.3%), Education Loan (18.3%) on a YoY basis.
Agriculture loan portfolio grew by 13.7% YoY to INR 1,30,694 crore.
Total Gold loan portfolio (including retail and agri.) stands at INR 43,884 crore, registering a growth of 31.0% on a YoY basis.
Organic MSME portfolio grew by 12.1% YoY to INR 1,13,512 crore.