Bank of Baroda (BOB) announced its highest-ever quarterly standalone net profit of 3,853 crore for the third quarter ending December 2022 (Q3 FY23), an increase of more than 75 per cent over the year-ago quarter of 2,197 crore. Bank of Baroda shares were trading more than 3 per cent higher on the BSE on Friday afternoon, at 159 apiece.
Its net interest income (NII) increased by more than 26 per cent year on year to 10,818 crore from 8,552 crore (YoY). Net interest margin (NIM) is 3.37 per cent in the October-December period, up 24 basis points (bps) year on year.
The lender reported a total business of 20,73,385 crore as of December 2022, an increase of 18.5 per cent year on year. In the third quarter, its operational profit increased by 50 per cent to Rs 8,232 crore.
The bank’s asset quality improved, with gross nonperforming assets (NPA) at 4.53 per cent, down from 5.31 per cent in the preceding quarter of September 2022, and net NPA at 0.99 per cent, down from 1.16 per cent. (QoQ).
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Provisions increased to 2,404 crore from 1,627.5 crore in the previous quarter and 2,507 crore in the previous year. Provision coverage ratio (PCR) reached a peak of 92.34 per cent with TWO and a low of 78.85 per cent without TWO. The bank also stated that its slippage ratio fell to 1.05 per cent in Q3FY23 from 1.68 per cent in Q3FY22.
