Bank of Baroda
Bank of Baroda Q1FY22: Net profit up 15.8 pc, NII at Rs 7,892 cr
Vadodra/IBNS: Public secor lender Bank of Baroda reported a net profit at Rs 1,209 crore on the back of a robust 15.8 per cent YOY growth in Net Interest Income (NII) to Rs 7,892 crore.
Highlights
Domestic deposits increased by 3.0 per cent YoY led by 12.7 per cent YoY increase in domestic CASA deposits. CA deposits increased by 21.1 per cent YoY and Savings deposits by 11.2 per cent YoY respectively.
Domestic CASA ratio increased to 43.21 per cent, an increase of 372 bps YoY. Domestic cost of deposits declined by 103 bps YoY to 3.92 per cent in Q1FY22.
Domestic advances fell by 2.3 per cent YoY due to run-off of low yielding corporate loans. Organic retail loans increased by 11.8 per cent YoY, agriculture loans by 9.4 per cent YoY and organic MSME advances increased by 6.9 per cent YoY. Within retail loans, auto loans increased by 25.0 per cent YoY and personal loans grew by 19.5 per cent YoY. Gold loans increased by 37.7 per cent YoY.
NII increased to Rs 7,892 crore in Q1FY22 compared with Rs 6,816 crore in Q1FY21, an increase of 15.8 per cent YoY.
Global NIM increased to 3.04 per cent in Q1FY22 compared with 2.52 per cent in Q1FY21 led by domestic margins which have now increased to 3.12 per cent in Q1FY22 from 2.59 per cent in Q1FY21.
Non-interest income during Q1FY22 increased by 63.4 per cent YoY to Rs 2,970 crore boosted by fee income which increased by 28.0 per cent. Non-fee income increased by 128.4 per cent YoY led by trading gains and recovery from TWO.
Operating Profit for Q1FY22 increased to Rs 5,707 crore thus registering an increase of 41.2 per cent YoY. Cost to income ratio fell by 574 bps YoY to 47.45 per cent in Q1FY22.
Credit cost in Q1FY22 fell to 1.36 per cent as against 1.78 per cent in Q1FY21, a decline of 42 bps YoY.
Bank reported a standalone Profit before Tax of Rs 1,595 crore in Q1FY22 and Net Profit of Rs 1,209 crore. For the consolidated entity, Profit before Tax and Net Profit stood at Rs 1,611 crore and Rs 1,187 crore respectively.
Gross NPA ratio declined to 8.86 per cent as on June 30, 2021 against 9.39 per cent as on June 30, 2020. Recovery and upgrades increased to Rs 4,435 crore in Q1FY22 as against Rs 818 crore in Q1FY22. Bank’s NNPA ratio increased to 3.03 per cent as on June 30, 2021 as against 2.83 per cent as on June 30, 2020.
Capital adequacy (CRAR) on standalone basis stands at 15.40 per cent with CET-1 at 11.25 per cent as on June 30, 2021 as against 12.84 per cent and 9.08 per cent respectively as on June 30, 2020. For the consolidated entity, CRAR and CET-1 stand at 16.38 per cent and 12.35 per cent respectively.
Bank reported RoA and RoE of 0.42 per cent and 8.63 per cent respectively in Q1FY22.
Bank of Baroda announced its results for the Quarter ended June 30, 2021, following the approval of its Board of Directors on August 7, 2021.
It is one of India’s largest banks with a strong domestic presence spanning 8,192 branches and 11,637 ATMs and Cash Recyclers supported by self-service channels.
Under the ‘Alternative Mechanism’ scheme, the Government announced the amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda which came into effect on April 1, 2019.
The Bank has a significant international presence with a network of 96 overseas offices spanning 19 countries.
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