Banking & FinanceFinanceInFocus
Bank of Baroda’s Net Profit for Q2FY23 Grows by 58.7% YoY to Touch INR 3,313 Crore
Key Highlights
- Net profit in (H1FY23) stood at INR 5,482 crore registering a strong YoY growth of 66.3%
- Advances registered a strong YoY growth of 19% in Q2FY23
- Organic Retail Advances grew by 28.4%, led by growth in high focus areas such as Home Loan (19%), Personal Loan (172.8%), Auto Loan (29.2%), Education Loan (23.2%)
- GNPA at 5.31% a reduction of 280 bps YoY and 95 bps QoQ
- NNPA at 1.16% a reduction of 167 bps YoY in Q2FY23 and 42 bps QoQ
- Provision coverage ratio (PCR) at 79.14% w/o TWO
- Net Interest Margins stands at 3.33% in Q2FY23, increase of 48 bps YoY & 31 bps QoQ
- Healthy Capital base – CRAR stands at 15.25% in Sep’22
Business Performance
- Global Advances of the Bank increased to INR 8,73,496 crore, +19% YoY.
- Domestic Advances of the Bank increased to INR 7,16,737 crore, +15% YoY.
- International advances registered a robust growth of 41.7% YoY.
- Global Deposits increased by 13.6% YoY to INR 10,90,172 crore.
- Domestic Deposits increased by 10.9% YoY to INR 9,58,967 crore in Sep’22.
- International Deposits grew by 38.3% on a YoY basis to INR 1,31,205 crore in Sep’22.
- Domestic Current Account Deposits stands at INR 64,873 crore, registering a growth of 7.9% on a YoY basis.
- Domestic Savings Bank Deposits grew by 9.4% to INR 3,45,278 crore. Overall Domestic CASA registered a growth of 9.2% on a YoY basis.
- Organic Retail loan portfolio of the Bank 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 YoY basis.
- Agriculture loan portfolio grew by 14.1% YoY to INR 1,14,964 crore.
- Total Gold loan portfolio (including retail and agri.) stands at INR 33,502 crore, registering a growth of 27.8% on a YoY basis.
- Organic MSME portfolio grew by 13.4% YoY to INR 1,01,278 crore.
Profitability
- Net Interest Income grew by 34.5% YoY and 15.1% QoQ to INR 10,714 crore in Q2FY23. It registered a growth of 23% YoY for H1FY23 and stands at INR 19,013 crore.
- Fee based Income for the quarter increased by 12.3% to INR 1,515 crore.
- Operating Income for Q2FY23 stands at INR 12,000 crore, increase of 7.7% YoY.
- Yield on Advances increased to 7.22% in Q2FY23 as against 6.55% in Q2FY22.
- Cost of Deposits stands at 3.59% in Q2FY23 as against 3.52% in Q2FY22.
- Operating Profit for Q2FY23 stands at INR 6,031 crore, increase of 6.4% on a YoY basis. Operating Profit for H1FY23 stands at INR 10,558 crore.
- Core Operating Profit (ex-Treasury gains/losses and Interest on IT refund) grew by 44.6% YoY at INR 6,270 Cr in Q2FY23.
- Bank reported a standalone Net Profit of INR 3,313 crore in Q2FY23 as against a profit of INR 2,088 crore in Q2FY22.
- Global NIM stands at 3.33% in Q2FY23, increase of 31 bps QoQ. NIM for H1FY23 stands at 3.17% against 3.03% for FY22.
- Return on Assets (annualised) improved to 1.01% in Q2FY23 from 0.73% in Q2FY22. Return on Assets for H1FY23 stands at 0.84%.
- Return on Equity (annualised) increased by 554 bps YoY to 19.56% in Q2FY23. Return on Equity for H1FY23 also increased by 511 bps YoY to 16.18%.
- For the consolidated entity, Net Profit stood at INR 3,400 crore in Q2FY23 as against INR 2,168 crore in Q2FY22.
Asset Quality
- The Gross NPA of the Bank reduced by 12% QoQ to INR 46,374 crore in Q2FY23 and Gross NPA Ratio improved to 5.31% in Q2FY23 from 6.26% in Q1FY23.
- The Net NPA Ratio of the Bank improved to 1.16% in Q2FY23 as compared with 1.58% in Q1FY23.
- The Provision Coverage Ratio of the Bank stood at 91.73% including TWO and 79.14% excluding TWO in Q2FY23.
- Slippage ratio declined to 1.53% for H1FY23 as against 2.45% in H1FY22.
- Credit cost for the Q2FY23 stands at 0.79%.
Capital Adequacy
- CRAR of the Bank stands at 15.25% in Sep’22 from 15.55% in Sep’21. Tier-I stood at 12.81% (CET-1 at 10.95%, AT1 at 1.86%) and Tier-II stood at 2.44% as of Sep’22.
- The CRAR and CET-1 of consolidated entity stands at 15.77% and 11.60% respectively
Business position
| Particulars (INR crore) | Sep 30, 2021 | Jun 30, 2022 | Sep 30, 2022 | YoY (%) |
| Domestic deposits | 8,64,603 | 9,09,095 | 9,58,967 | 10.9 |
| Domestic CASA | 3,75,766 | 4,01,622 | 4,10,151 | 9.2 |
| Global deposits | 9,59,483 | 10,32,714 | 10,90,172 | 13.6 |
| Domestic advances | 6,23,368 | 6,95,493 | 7,16,737 | 15.0 |
| Of which, retail loan portfolio (Organic) | 1,23,424 | 1,47,535 | 1,58,506 | 28.4 |
| Global advances | 7,34,033 | 8,39,785 | 8,73,496 | 19.0 |
| NIM Global % | 2.85 | 3.02 | 3.33 | 48 bps |
Financial result for Quarter ended 30th September 2022
| Particulars (INR crore) | Q2FY22 | Q1FY23 | Q2FY23 | YoY(%) |
| Interest Income | 16,692 | 18,937 | 21,254 | 27.3 |
| Interest Expenses | 9,126 | 10,099 | 11,080 | 21.4 |
| Fee Income | 1,349 | 1,277 | 1,515 | 12.3 |
| Net Interest Income (NII) | 7,566 | 8,838 | 10,174 | 34.5 |
| Operating Income | 11,145 | 10,020 | 12,000 | 7.7 |
| Operating Expenses | 5,476 | 5,492 | 5,969 | 9.0 |
| Operating Profit | 5,670 | 4,528 | 6,031 | 6.4 |
| Total Provisions (other than tax) and contingencies | 2,754 | 1,685 | 1,628 | -40.9 |
| of which, Provision for NPA Bad Debts Written-off | 2,600 | 1,560 | 1,654 | -36.4 |
| Profit before Tax | 2,916 | 2,843 | 4,403 | 51.0 |
| Provision for Tax | 828 | 675 | 1,090 | 31.6 |
| Net Profit | 2,088 | 2,168 | 3,313 | 58.7 |
Key Ratios
| Particulars | Sep 30, 2021 | Jun 30, 2022 | Sep 30, 2022 |
| CRAR (%) | 15.55 | 15.46 | 15.25 |
| Tier-1 (%) | 13.21 | 12.97 | 12.81 |
| CET-1 (%) | 11.39 | 11.24 | 10.95 |
| Gross NPA (%) | 8.11 | 6.26 | 5.31 |
| Net NPA (%) | 2.83 | 1.58 | 1.16 |
| PCR (with TWO) (%) | 83.42 | 89.38 | 91.73 |
