 "BoB Q3 results: PAT up 19% at Rs 4,579 cr; to raise upto Rs 2,500 cr in Q4")
Bank of Baroda (BoB) on Wednesday reported a rise of 18.8 cent in net profit on an year-on-year (Y-o-Y) basis to Rs 4,579 crore for the December quarter (Q3FY24). The rise was predominantly due to the fall in provisions and stable asset quality. The lender had posted a profit of Rs 3,8753 crore in Q3FY23.
Sequentially, the lender’s profit rose marginally from Rs 4,253 crore in Q2FY24.
Debadatta Chand, managing director and chief executive officer of the bank, said it has posted a profit of above Rs 4,000 crore in each of the last four quarters, showing sustainability of profitability for future. Its stock closed 4.38 per cent up at Rs 247.7 per share on BSE.
The bank’s capital adequacy ratio stood at 14.72 per cent with common Tier-I capital of 11.11 per cent at the end of December 2023. The capital impact of hike in risk weights on unsecured consumer loans and exposure to non-banking finance companies was about 70 basis points. BoB plans to issue additional Tier-II capital bonds of upto Rs 2,500 crore in the fourth quarter ended March 2023.
The Mumbai-based lender’s net interest income (NII) expanded 2.6 per cent to Rs 11,101 crore in Q3FY24, compared to Rs 10,818 crore in the same quarter a year ago. Sequentially, NII rose by 2.5 per cent from Rs 10,831 crore in Q2FY24.
Net interest margin (NIM) declined to 3.10 per cent compared to 3.27 per cent in Q3 of FY23. Sequentially, NIM was up from 3.07 per cent. BoB is guiding NIM to be around 3.15 per cent for FY24, Chand said in a media call after announcement of results.
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Non-interest income comprising fees, commissions, treasury income and recoveries fell by 20.9 per cent Y-o-Y to Rs 2,810 crore in Q3FY24. Sequentially, it fell from Rs 4,171 crore in Q2FY24.
Fees income rose 3.6 per cent Y-o-Y to Rs 1,543 crore. Sequentially, it fell from Rs 1,996 crore in Q2FY24. Treasury income shrunk by 65.5 per cent Y-o-Y to Rs 410 crore in December 2023 quarter. It also fell from Rs 725 crore in Q2FY24. Its provisions and contingencies declined to Rs 666 crore in Q3FY24 from Rs 2,403 crore in Q3FY23 and Rs 2,160 crore in Q2FY24.
The provision coverage ratio, including technical write-offs, improved to 93.39 per cent in December from 92.34 per cent a year ago.
BoB’s Advances grew 13.6 per cent YoY to Rs 10.49 trillion in Q3 of FY24. The bank expects to grow its loan book by 14-16 per cent in the current financial year. Its personal loan portfolio expanded by 60.8 per cent YoY at Rs 27,699 crore. The growth rate would moderate to 32-35 per cent YoY over the period, Chand said.
Total deposits increased 8.3 per cent YoY to Rs 12.45 trillion. Bank has reduced the wholesale deposits and expects to grow deposits by around 12 per cent in Fy24 with emphasis on retail liabilities, he said. The share of low-cost deposits – current account and saving account (CASA) – in domestic books declined to 40.69 per cent at the end of December, down from 41.63 per cent a year ago.
Asset quality improved with gross NPAs declining to 3.08 per cent in December from 4.53 per cent a year ago. Sequentially, it was down 3.32 per cent in September 2023.
Net NPAs declined to 0.70 per cent in December from 0.99 per cent in the year-ago. Sequentially, net NPAs were down from 0.76 per cent.