Bank of Baroda, a public sector lender, reported a robust net profit of ₹4,252.9 crore in the second quarter of fiscal year 2023-24 (Q2FY24), representing a significant surge of 28.4 percent compared to the same period last year. The bank’s standalone net profit demonstrated a substantial 28.3% increase, reaching Rs 4,253 crore during the September quarter. This information was disclosed in an exchange filing on November 4.
The bank’s net interest income (NII) also exhibited healthy growth, increasing by 6.5 percent year-on-year during the reviewed quarter, reaching ₹10,830.70 crore, in contrast to ₹10,174.5 crore in the corresponding period of the previous year. The net profit expanded to ₹4,253 crore, up from ₹3,313 crore a year ago. On a quarterly basis, the profit registered a 4.49 percent increase. According to data from LSEG, Bank of Baroda’s profit growth was initially forecasted at ₹4,004 crore.
On a sequential basis, the net profit experienced a 4.49% increase. Other income more than doubled, showing a remarkable 128% year-on-year increase, reaching Rs 4,171 crore. The core income, represented by net interest income, rose by 6.4% year-on-year, totalling Rs 10,831 crore. However, the net interest margin slightly declined, dropping 26 basis points quarter-on-quarter to 3.07%, down from the previous 3.27%.
The credit cost for the bank stood at 0.92%, compared to 0.70% in the previous quarter. Asset quality also improved for the lender, with the gross non-performing asset ratio decreasing by 19 basis points to 3.32% quarter-on-quarter. The net NPA ratio also showed improvement, declining to 0.76% sequentially, compared to 0.78%. Fresh slippages increased by 76.7% quarter-on-quarter, reaching Rs 4,331 crore. On an annual basis, they increased by 24.4%.
Corporate slippages witnessed the most significant rise, increasing tenfold quarter-on-quarter to Rs 1,806 crore, while agri slippages grew by 29.1% quarter-on-quarter to Rs 483 crore. In contrast, retail slippages decreased by 21% sequentially to Rs 483 crore, and MSME slippages also declined by 22%, amounting to Rs 893 crore. Provisions for the quarter stood at Rs 2,161 crore, marking a 32.7% year-on-year increase. The current account to savings account ratio also remained strong.
