Bank of Baroda Q1 results: Net profit jumps 88% to Rs 4,070 cr; asset quality improves
Bank of Baroda's net interest income rose 24% to Rs 10,997 crore in Q1FY24 as against Rs 8,838 crore in Q1FY23
- Aug 5, 2023,
- Updated Aug 5, 2023 5:01 PM IST
Public sector lender Bank of Baroda on Saturday reported 88% jump in net profit at Rs 4,070 crore for the quarter ending June 30, 2023, boosted by healthy interest income on the back of asset repricing and higher loan sales. It reported net profit of Rs 2,168 crore in the year-ago period.
The bank's net interest income rose 24% to Rs 10,997 crore in Q1FY24 as against Rs 8,838 crore in Q1FY23, coupled with robust growth in non-interest income that grew 2.8 times.
On Friday, Bank of Baroda's scrip on BSE closed 1% lower at Rs 191.45.
On the asset quality front, gross non-performing assets ratio improved to 3.51% from the previous quarter's 3.79%.
Net NPA ratio improved to 0.78% from the previous quarter's 0.89%.
Sustained NII growth was buoyed by an 18% growth in advances coupled with a traction in net interest margins (NIM), which grew 25 basis points (bps) to 3.27%, the bank said in a statement.
Global NIM stood at 3.27%, an increase of 25 bps, while domestic NIM rose 34 bps to 3.41%. This has had the yield on advances increasing to 8.40% during the reporting quarter from 6.58% in Q1FY23.
Cost of deposits rose to 4.68% from 3.46% and the cost to income ratio came down to 45.36% from 54.81%, which excluding treasury improved by 168 bps to 47.41%.
The bank saw a significant improvement in its asset quality with reduction in GNPA (Gross Non Performing Asset) by 275 bps to 3.51% and improvement in NNPA (Net NPA) to 0.78%, down 80 bps. In absolute terms GNPA came down 33.8% to Rs 34,832 crore and the provision coverage ratio stood at 93.23. Slippage ratio declined to 1.05% as against 1.71% a year ago.
With inputs from PTI
Public sector lender Bank of Baroda on Saturday reported 88% jump in net profit at Rs 4,070 crore for the quarter ending June 30, 2023, boosted by healthy interest income on the back of asset repricing and higher loan sales. It reported net profit of Rs 2,168 crore in the year-ago period.
The bank's net interest income rose 24% to Rs 10,997 crore in Q1FY24 as against Rs 8,838 crore in Q1FY23, coupled with robust growth in non-interest income that grew 2.8 times.
On Friday, Bank of Baroda's scrip on BSE closed 1% lower at Rs 191.45.
On the asset quality front, gross non-performing assets ratio improved to 3.51% from the previous quarter's 3.79%.
Net NPA ratio improved to 0.78% from the previous quarter's 0.89%.
Sustained NII growth was buoyed by an 18% growth in advances coupled with a traction in net interest margins (NIM), which grew 25 basis points (bps) to 3.27%, the bank said in a statement.
Global NIM stood at 3.27%, an increase of 25 bps, while domestic NIM rose 34 bps to 3.41%. This has had the yield on advances increasing to 8.40% during the reporting quarter from 6.58% in Q1FY23.
Cost of deposits rose to 4.68% from 3.46% and the cost to income ratio came down to 45.36% from 54.81%, which excluding treasury improved by 168 bps to 47.41%.
The bank saw a significant improvement in its asset quality with reduction in GNPA (Gross Non Performing Asset) by 275 bps to 3.51% and improvement in NNPA (Net NPA) to 0.78%, down 80 bps. In absolute terms GNPA came down 33.8% to Rs 34,832 crore and the provision coverage ratio stood at 93.23. Slippage ratio declined to 1.05% as against 1.71% a year ago.
With inputs from PTI