Bank of Baroda reports 59% YoY growth in Q2 PAT to ₹3,312 cr, gross NPA dips sharply


PSU lender, Bank of Baroda (BoB) beats street’s estimates in the quarter ending September 30, 2022 (Q2FY23) period with profitability witnessing double-digit growth. The bank garnered a standalone net profit of 3,312.42 crore in Q2FY23 rising by 58.70% from a profit of 2,087.85 crore posted in Q2 of the previous fiscal. During the quarter, the bank’s provision’s declined, while asset quality improved sharply. Further, its organic retail loan portfolio saw healthy growth with strong performance in personal loan book. Overall, deposits and advances registered robust growth in Q2FY23.

BoB recorded a growth of 52.82% from a PAT of 2,168.13 crore in Q1FY23.

In Q2 of the current fiscal, the bank‘s net interest income (NII) which is the difference between interest earned and interest expended, came in at 10,174.46 crore in Q2FY23 — registering a growth of 34.47% from 7,565.97 crore in Q2FY22. Compared to Q1FY23 where NII came in at 8,838.39 crore, the bank posted a growth of 15.12% in Q2FY23.

Provisions and contingencies in Q2FY23 stood at 1,627.46 crore as compared to provisions of 2,753.59 crore in Q2FY22 and 1,684.80 crore in Q1FY23. As of September 30, 2022, gross NPA stood at 46,374.44 crore compared to 59,503.82 crore in September 2021 period and 52,590.83 crore in June 2022 quarter.

In percentage terms, gross NPA was at 5.31% in Q2FY23 — dropping sharply from 8.11% in Q2FY22 and 6.26% in Q1FY23. Also, the net NPA ratio improved to 1.16% in Q2FY23 as compared with 1.58% in Q1FY23. The provision coverage ratio of the bank came in at 91.73%. Meanwhile, its slippage ratio declined to 1.53% for H1 FY23 as against 2.45% in H1 FY22. Credit cost for the Q2FY23 stands at 0.79%.

In terms of the loan book, the bank recorded global advances jumped by over 19% yoy to 8,73,496 crore. The bank’s domestic advances soared over 15% yoy, while international advances recorded a robust growth of 41.7% yoy.

Under advances, in Q2FY23, the bank’s organic retail loan portfolio grew by 28.4% led by growth in personal loan portfolio by 172.8%, auto loan by 29.2%, education loan by 23.2%, home loan by 19% on a year-on-year basis. Additionally, its agriculture loan portfolio climbed by 14.1% yoy. While the total gold loan portfolio saw 27.8% yoy growth.

Meanwhile, in terms of deposits, the bank registered a rise of 13.6% yoy to 10,90,172 crore globally. Its domestic deposits surged by 10.9% yoy and international deposits grew by 38.3% yoy.

On the domestic front, Current Account Deposits stands at 64,873 crore in Q2FY23, registering a growth of 7.9% yoy. Savings Bank Deposits grew by 9.4% to 3,45,278 crore. Overall Domestic CASA registered a growth of 9.2% on a yoy basis.

On Friday, the bank’s stock closed at 144.55 apiece on BSE down by 2.43%. Its market cap is around 74,752.04 crore.

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