|
Bank
of Baroda has reported 23% growth in net profit at Rs
5237.93 crore for the quarter ended September 2024 (Q2FY2025). The bank has
posted healthy 7% growth in net interest income (NII), while the core fee
income of the bank declined 11% in Q2FY2025. The Net Interest Margin (NIM) of
the bank improved to 3.10% in Q2FY2025 compared to 3.07% in the corresponding
quarter of previous year.
On business front, the bank as has posted 10% growth in business
with 12% increase in loan book. The asset quality of the bank was stable in
Q2FY2025. Bank has substantially raised the credit to deposit ratio to 83.9% at
end September 2024 from 82.0% at end September 2023.
Asset quality improves: The bank has exhibited
healthy improvement in the asset quality in Q2FY2025.
The fresh slippages of loans stood at Rs 3110 crore in Q2FY2025
compared with 3018 crore in previous quarter and Rs 4751 crore in the
corresponding quarter last year.
The recoveries of NPAs stood at Rs 960 crore, upgradations at Rs
877 crore and the write-off of loans was at Rs 3595 crore in Q2FY2025.
Provision coverage ratio improved to 93.61% at end September 2024
compared to 93.32% a quarter ago and 93.16% a year ago.
The capital adequacy ratio of the bank stood at 16.3% with Tier I
ratio at 14.2% at end September 2024.
The risk weighted assets of the bank has increased 10% YoY to Rs
822208 crore end September 2024,
|
Asset Quality Indicators: Bank of Baroda
|
|
|
Sep-24
|
Jun-24
|
Mar-24
|
Dec-23
|
Sep-23
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
28551.20
|
30873.14
|
31833.63
|
32317.56
|
33968.47
|
-8
|
-10
|
-16
|
|
Net NPA (Rs Crore)
|
6764.27
|
7231.53
|
7213.34
|
7208.31
|
7596.73
|
-6
|
-6
|
-11
|
|
% Gross NPA
|
2.50
|
2.88
|
2.92
|
3.08
|
3.32
|
-38
|
-42
|
-82
|
|
% Net NPA
|
0.60
|
0.69
|
0.68
|
0.70
|
0.76
|
-9
|
-8
|
-16
|
|
% PCR
|
93.61
|
93.32
|
93.30
|
93.39
|
93.16
|
29
|
31
|
45
|
|
% CRAR - Basel III
|
16.26
|
16.82
|
16.31
|
14.72
|
15.30
|
-56
|
-5
|
96
|
|
% CRAR - Tier I - Basel III
|
14.18
|
14.65
|
14.07
|
12.67
|
13.19
|
-47
|
11
|
99
|
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business Highlights:
Healthy business growth: The business of
the bank has increased 10% YoY to Rs 2506809 crore end September 2024, driven
by 12% surge in advances to Rs 1143323 crore. Deposits rose 9% to Rs 1363486
crore at end September 2024.
CASA deposits ratio declines: The CASA
deposits of the bank increased 7% YoY to Rs 460316 crore at end September 2024.
The current account deposits increased 7% to Rs 69047 crore, while saving
account deposits increased 7% to Rs 391269 crore end September 2024. The CASA
ratio declined to 33.8% at end September 2024 compared to 34.4% at end
September 2023, while eased from 34.7% a quarter ago. The term deposits have
increased 10% to Rs 903170 crore end September 2024. Overseas deposits have
increased 21% to Rs 212695 crore end September 2024.
Strong retail loan growth: Advances growth
was driven by retail loans rising 20% YoY to Rs 232311 crore at end September
2024, while credit to agriculture increased 11% to Rs 144508 crore and MSME 12%
to Rs 126828 crore at end September 2024. The corporate credit moved up 10% to
Rs 435236 crore end September 2024. The overseas credit has moved up 8% to Rs
204156 crore end September 2024.
Investment book of the bank was flat YoY to Rs 375976 crore at end
September 2024. The SLR book was steady at Rs 300180 crore, while non SLR book rose
5% to Rs 60064 crore at end September 2024. The AFS book dipped -32% to Rs
74224 crore, while HTM book rose 10% to Rs 272872 crore at end September 2024.
The duration of the overall investment portfolio stood at 3.97 years end
September 2024.
Margins improve: The bank has
showed 20 bps YoY jump in cost of deposits to 5.12%, while yield on advances
increased 5 bps YoY to 8.48% in Q2FY2025. NIM improved 3 bps YoY, while declined
8 bps qoq to 3.10%
Book value of the bank stood at Rs
234.7 per share at end September 2024, while the adjusted book value (net of
NNPA and 25% of restructured advances) was Rs 217.3 per share at end September
2024.
Quarterly Performance
NII rises as NIM improves: Bank has
recorded 9% increase in the interest earned at Rs 30263.31 crore, while
interest expenses increased 9% to Rs 18641.22 crore in Q2FY2025. NII improved
7% to Rs 11622.09 crore in the quarter ended September 2024.
Fee income declines, treasury income jumps: Bank has posted 11% decline in core fee income to Rs 1773 crore,
while the forex income dipped 65% to Rs 107 crore. However, the treasury income
surged 66% to Rs 692 crore and recoveries and other income jumped 105% to Rs
2525 crore leading to 24% surge in the overall non-interest income to Rs
5181.39 crore in the quarter ended September 2024.
Expenses ratio improves: The operating
expenses of the bank increased 5% to Rs 7326.47 crore, as other expenses moved
up 0% to Rs 3286.74 crore, while employee expenses increased 9% to Rs 4039.73
crore in Q2FY2025. Cost to income ratio improved to 43.6% in Q2FY2025 compared
with 46.5% in Q2FY2024, helping the Operating Profit to increase 18% to Rs
9477.01 crore.
Provisions and contingencies rise: The bank has showed 8% rise in provisions to Rs 2335.73 crore. The
loan loss provisions declined -24% to Rs 1733 crore, while investment
provisions jumped 33% to Rs 122 crore and standard asset provisions rebounded to Rs 336
crore and other provisions rose 1% to Rs 144 crore.
Effective tax rate declined to 26.7% in Q2FY2025 from 27.4% in
Q2FY2024. Net Profit rose by 23% YoY to Rs 5237.93 crore during quarter ended
September 2024.
Financial Performance H1FY2025:
Bank has posted 16% increase in net profit to Rs 9696.08 crore in
the half year ended September 2024 (H1FY2025). The net interest income
increased 6% to Rs 23222.16 crore, while non-interest income moved up 2% to Rs
7668.64 crore, pushing up net total income by 5% to Rs 30890.80 crore in
H1FY2025. The operating expenses increased 6% to Rs 14252.53 crore, while
provision and contingencies declined 19% to Rs 3346.40 crore, allowing profit
before tax to increase 13% to Rs 13291.87 crore in H1FY2025. The cost-to-income
ratio was steady at 46.1% in H1FY2025 compared to 46.0% in H1FY2024. An
effective tax rate declined to 27.1% in H1FY2025 compared to 29.1% in H1FY2024.
The net profit has increased 16% to Rs 9696.08 crore in H1FY2025.
|
Bank
of Baroda: Results
|
|
Particulars
|
2409 (3)
|
2309 (3)
|
Var %
|
2409 (6)
|
2309 (6)
|
Var %
|
2403 (12)
|
2303 (12)
|
Var %
|
|
Interest Earned
|
30263.31
|
27861.60
|
9
|
59892.01
|
54417.41
|
10
|
112605.94
|
89588.54
|
26
|
|
Interest Expended
|
18641.22
|
17030.90
|
9
|
36669.85
|
32590.04
|
13
|
67884.41
|
48232.53
|
41
|
|
Net Interest Income
|
11622.09
|
10830.70
|
7
|
23222.16
|
21827.37
|
6
|
44721.53
|
41356.01
|
8
|
|
Other Income
|
5181.39
|
4171.15
|
24
|
7668.64
|
7493.41
|
2
|
14495.37
|
10025.84
|
45
|
|
Net Total Income
|
16803.48
|
15001.85
|
12
|
30890.80
|
29320.78
|
5
|
59216.90
|
51381.85
|
15
|
|
Operating Expenses
|
7326.47
|
6982.13
|
5
|
14252.53
|
13476.76
|
6
|
28251.68
|
24518.31
|
15
|
|
Operating Profits
|
9477.01
|
8019.72
|
18
|
16638.27
|
15844.02
|
5
|
30965.22
|
26863.54
|
15
|
|
Provisions & Contingencies
|
2335.73
|
2160.57
|
8
|
3346.40
|
4107.33
|
-19
|
6075.61
|
7136.90
|
-15
|
|
Profit Before Tax
|
7141.28
|
5859.15
|
22
|
13291.87
|
11736.69
|
13
|
24889.61
|
19726.64
|
26
|
|
Provision for tax
|
1903.35
|
1606.26
|
18
|
3595.79
|
3413.73
|
5
|
7100.83
|
5617.02
|
26
|
|
PAT
|
5237.93
|
4252.89
|
23
|
9696.08
|
8322.96
|
16
|
17788.78
|
14109.62
|
26
|
|
EPS*(Rs)
|
40.5
|
32.9
|
|
37.5
|
32.1
|
|
34.4
|
27.3
|
|
|
Adj BV (Rs)
|
217.3
|
173.6
|
|
217.3
|
173.6
|
|
187.9
|
155.2
|
|
|
*
Annualized on current equity of Rs 1035.53 crore. Face Value: Rs 2, Figures
in Rs crore
|
|
Source:
Capitaline Corporate Database
|
|