Bank of Baroda posted a 87.72 per cent increase in net profit to Rs 4070.1 crore during the April to June Quarter 2023 in its Q1 results for the current fiscal year. This strong profit rise was aided by a 42.9 per cent YoY increase in operating income in Q1FY24.
The state-owned bank said that high income growth combined with a modest increase in Opex resulted in a healthy Operating profit growth of 73 per cent YoY for Q1FY24.
However, the PSU bank’s first-quarter earnings for the current fiscal year fell short of market expectations. The market estimated the PSU lender’s net profit at approximately 4,630 crore.
BoB’s total income in the first quarter of the fiscal year 2023-24 is 29,878.07 crore, which is 48.50 per cent greater than its total income of 20,119.52 crore in Q1FY23. Bank of Baroda saw a slight improvement on a sequential basis, with total income of 29,322.74 crore in Q4FY23.
Bank of Baroda managed to contain its Non-Performing Asset (NPA) on both a sequential and YoY basis during the April to June 2023 quarter. The public sector undertaking bank recorded a drop in net NPA from 12,652.74 crore in Q1FY23 to 7,482.45 crore in the recently ended June 2023 quarter, representing a 40.86 per cent drop YoY. On a sequential basis, BoB’s net NPA decreased from 8,384.32 crore in Q4FY23 to 7,482.45 crore in Q1FY24, representing a near 10.75 per cent decrease over the April to June 2023 quarter of FY 2023-24.
BOB’s asset quality has improved significantly, with GNPA falling by 275 basis points year on year to 3.51 per cent. The bank’s NNPA improved to 0.78 per cent, down 80 basis points YoY.
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Operating income growth was driven by significant Net Interest Income (NII) growth of 24.4 per cent YoY in Q1FY24, as well as substantial Non-Interest Income growth of 2.8 times YoY.
The public sector bank posted its highest-ever quarterly net profit of Rs 4,775 crore in Q4FY23, up from Rs 1,778.77 crore in Q4FY22. The lender’s net interest income (NII) grew 34 per cent YoY to 11,525 crore during the January to March 2023 quarter from 8,612 crore. YoY, the net interest margin (NIM) increased to 3.31 per cent from 3.03 per cent. During the quarter, asset quality improved while deposit growth remained solid.
