Bank of Baroda on Wednesday, January 31, reported an 18.8% rise in net profit reaching ₹4,579 crore in the third quarter of the 2023-24 fiscal as compared to ₹3,852.7 crore last year. The lender's net interest income (NII) stood at ₹11,101 crore, slightly surpassing the CNBC-TV18 poll estimate of ₹11,085 crore.
This represents a year-on-year (YoY) increase of 2.6%, rising from ₹10,818.3 crore.
The bank displayed some improvement in asset quality, with Gross NPA (Non-Performing Assets) at 3.08% as opposed to 3.32% in the previous quarter.
Net NPA also witnessed a decline, standing at 0.70%, down from 0.76% in the previous quarter.
Gross NPA amounted to ₹32,317 crore, a decrease from ₹33,978.5 crore in the previous quarter. Net NPA reduced to ₹7,208.3 crore from ₹7,596.7 crore in the last quarter.
The bank made provisions of ₹666.3 crore, significantly lower than the ₹2,404 crore reported YoY and ₹2,160.6 crore in the previous quarter.
The Cost to Income ratio demonstrated a reduction by 123 basis points (bps) YoY, reaching 47.13% for the nine months ending December 2023 (9MFY24).
The Global Net Interest Margin (NIM) of the lender improved by 3 basis points sequentially, standing at 3.10% in Q3FY24, compared to 3.07% in Q2FY24.
The Net Interest Margin for 9MFY24 is reported at 3.14%.
The credit cost remained below 1%, reporting 0.69% for 9MFY24 and 0.39% for the quarter.
The bank maintained a healthy liquidity coverage ratio at 133% as of December 31, 2023.
Bank of Baroda's global advances registered growth of 13.6% YoY in Q3FY24, driven by robust retail loan book growth.
The bank's organic retail advances grew by 22%, propelled by growth in high-focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), and Education Loan (18.3%).
Recently, Bank of Baroda launched a comprehensive Current Account Package with seven new Current Account products. Each current account product has been curated to meet specific business banking needs of different business segments, the lender said in a statement.
At the time of writing this report, the shares of Bank of Baroda was trading 3.92% up at ₹246.60 apiece on the BSE.
First Published: Jan 31, 2024 2:16 PM IST
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