Bank of Baroda Sees Strong Growth of 8.52% in Global Business

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Synopsis:

Bank of Baroda's global business grew by 8.52% YoY to ₹23.77 lakh crore, driven by a robust increase in deposits and advances. The bank reported a 2.3% rise in net profit in Q4, with improved asset quality and a net interest margin of 3.27%.

Bank of Baroda News Today

State-owned Bank of Baroda (BoB) announced that its global business witnessed an 8.52% year-on-year increase, reaching ₹23.77 lakh crore. This growth was fueled by a substantial rise in global deposits, which grew by 8.83% YoY to ₹13.05 lakh crore. The bank's global advances also saw a robust uptick, climbing by 8.14% YoY to ₹10.72 lakh crore.

Domestic Operations

On the domestic front, the Bank of Baroda reported a 5.25% increase in deposits, amounting to ₹11.05 lakh crore, and an 8.51% growth in advances, totalling ₹8.82 lakh crore. Particularly impressive was the surge in domestic retail advances, soaring by 20.86% to ₹2.22 lakh crore.

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Financial Highlights

For the fourth quarter of FY24, Bank of Baroda reported a net profit of ₹4,886.5 crore, marking a 2.3% increase from the previous year. This exceeded analyst expectations of ₹4,576.2 crore. The bank's net interest margin (NIM) improved to 3.27%, up from 3.10% in the previous quarter.

Asset Quality and Provisions

BoB demonstrated improved asset quality metrics, with the gross non-performing assets (NPAs) ratio decreasing to 2.92% from 3.08% in the previous quarter. The net NPA ratio also improved to 0.68% in Q4 FY24 compared to 0.89% in Q4 FY23. The provision coverage ratio stood at 93.30%.

Challenges and Net Interest Income

Despite strong performance, BoB faced challenges with increased slippages amounting to ₹3,200 crore in Q4 FY24, up from ₹2,618 crore in the previous quarter. The slippage ratio rose to 1.12% from 0.95% quarter-on-quarter. The bank's net interest income for the quarter was ₹11,793 crore, slightly down from ₹11,525 crore year-on-year, with a net interest margin of 3.18%.

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