Bank of Baroda, a leading public sector lender, announced its financial results for the fourth quarter of the fiscal year 2023-24 on May 10. The bank reported a notable 2.3 per cent rise in net profit, reaching Rs 4,886 crore compared to Rs 4,775 crore recorded in the corresponding period last year.
One of the report’s key highlights was the improvement in the bank’s asset quality. The gross non-performing asset (NPA) ratio decreased significantly to 2.92 per cent, down from 3.79 per cent in the same quarter of the previous fiscal year. Similarly, the net NPA ratio also witnessed a decline, standing at 0.68 per cent compared to 0.89 per cent a year ago.
Despite a slight compression in net interest margin, which fell to 3.18 per cent from 3.31 per cent in the previous year, Bank of Baroda reported a growth in net interest income, reaching Rs 11,793 crore compared to Rs 11,525 crore last year.
The bank’s total domestic deposits showed a healthy growth of 7.7 per cent annually, reaching Rs 11.28 lakh crore from Rs 10.47 lakh crore in the previous year. Additionally, domestic advances surged by 12.9 per cent year-on-year, from Rs 7.95 lakh crore in Q4FY23 to Rs 8.98 lakh crore in Q4FY24.
Bank of Baroda also declared a dividend of Rs 7.60 per share. Moreover, the bank attributed a provision reversal of Rs 3132 lakhs during the quarter ended March 2024 to the reassessment of provisions based on the clarification issued by the Reserve Bank of India (RBI) through a circular dated March 27, 2024, regarding investments in AIFs.
The financial results reflect Bank of Baroda‘s continued efforts to strengthen its financial position and enhance shareholder value amidst a challenging economic environment.
“Based on the subsequent clarification issued by RBI vide circular dated March 27, 2024, the Bank has reassessed the provision and accordingly, the Bank has reversed provision of Rs 3132 lakhs during the quarter ended March 2024 in respect of the investment in AIFs,” lender said in a release.
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