Bank of Baroda (BoB) reported a 75% year-on-year (yoy) increase in Q3 stand-alone net profit of Rs 3,853 crore from Rs 2,197 crore in the prior-year quarter thanks to strong growth in both net income from interest and from non-financial income and the sharp decrease in the provisions for loan losses.
Net interest income (difference between interest earned and interest spent) increased 26.5% year-on-year to Rs 10,818 crore (Rs 8,552 crore in the prior-year quarter).
Non-interest income (which includes fee-based income, treasury income and other non-interest income) increased 41% year-on-year to ₹3,552 crore (₹2,519 crore).
The provision for non-performing assets (NPA) and written-off bad debts decreased 81 percent year-on-year to ₹817 crore (₹4,283 crore). However, the provisions for non-performing investments increased to ₹1409 crore (₹447 crore).
Gross advances increased by 19.7% to Rs 9,23,878 crore at the end of December 2022. Total deposits increased by 17.5% to Rs 11,49,507 crore.
Sanjiv Chadha, MD and CEO, said the results show the bank can grow aggressively, with margins and profits to match.
“Both deposits and advances have grown well… The challenge for banks has been the widening gap between deposit growth and advances. But that’s less of a problem for us.
“Our internal credit-to-deposit ratio is still around 74 percent. This means that even as we go forward, there is enough headroom to make sure we can really keep our foot on the gas,” he said.
GNPAs decreased to 4.53% of gross advances at end-December 2022 from 5.31% at end-September 2022. Net NPAs decreased to 0.99% of net advances from 1.16 %.
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