Bank of Baroda financial results for the quarter ended 31 March 2023

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Bank of Baroda financial results for the quarter ended 31 March 2023.

Bank of Baroda announces Financial Results for the Quarter ended 31 March 2023. Attached herewith the press release for your reference and request your kind consideration.

Please find below the key highlights:

  • Bank of Baroda (BOB) reported a ~2x growth in profits for FY23 and declared it’s highest ever quarterly and annual net profit of INR 4,775 crore (+168% YoY) and INR     14,110 crore (+94% YoY) respectively.
  • As a result of this significant improvement in profitability the Bank’s Return on Assets (RoA) for FY23 improved by 43 bps YoY to 1.03% (FY23) ; RoA for Q4FY23 improves by 77 bps YoY to 1.34%
  • Similarly, Bank’s Return on Equity (RoE) for FY23 increases by 648 bps YoY to 18.34%; RoE for Q4FY23 stands 24.82%, up by 1321 bps YoY
  • This robust growth in profitability was supported by healthy Net Interest Income (NII) growth of 33.8% & 26.8% for Q4FY23 & FY23 respectively.
  • Sustained NII growth is attributable to growth in advances of 18.5% (YoY) coupled with traction in Net Interest Margins (NIM), which grew 16 bps QoQ / 45 bps YoY to end the quarter at 3.53% and 28 bps YoY for the full year FY23.
  • Strong growth in Income coupled with subdued increase in Opex has resulted in robust Operating profit growth of 43.3% YoY for Q4FY23 and 20% YoY for the financial year 2023.
  • The Bank has been able to effect a reduction in the Cost to Income ratio by 152 bps and reported a Cost to Income ratio of 47.72% for FY23.
  • BOB has witnessed significant improvement in its Asset quality with sharp reduction in GNPA by 282 bps YoY & 74 bps QoQ to 3.79%. Bank’s NNPA improved to    0.89% with a reduction of 83 bps YoY and 10 bps QoQ.
  • BOB’s Provision Coverage Ratio (PCR) remained healthy at 92.43% with TWO & at 77.19% without TWO.
  • This strong and sustainable improvement in asset quality has resulted in record low Credit Cost for the Bank at 0.14% for Q4FY23 & 0.53% for FY23.
  • BOB’s Global Advances registered a strong YoY growth of 18.5% in Q4FY23 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 26.8%, driven by growth in high focus areas such as Auto Loan (24.4%), Home Loan (19.5%), Personal Loan (101.5%), Mortgage Loan (18.0%), Education Loan (21.8%).
  • Bank achieved a total business of INR 21,73,236 crore as of 31st March 2023, registering a growth of 16.6% YoY.
  • The Board of the Bank has recommended to declare a dividend of INR 5.5 per share, subject to requisite approval

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