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

Financial result for Quarter ended 30th September 2022

Key Ratios