Bank of Baroda’s Q2 earnings increased by 59% to Rs 3,313 crore

The bank’s provisions decreased during the quarter, while asset quality significantly improved. Additionally, the organic retail loan portfolio witnessed sound expansion with strong personal loan book performance. In general, deposits and advances grew significantly in Q2FY23.

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In the quarter ending September 30, 2022 (Q2FY23), PSU lender Bank of Baroda (BoB) outperformed analyst expectations while profits increased by double digits. The bank’s standalone net profit in the second quarter of this fiscal year was Rs.3,312,42 crore, up 58.70% from the profit of Rs.2,087,85 crore reported in the second quarter of the previous fiscal. The bank’s provisions decreased during the quarter, while asset quality significantly improved. Additionally, the organic retail loan portfolio witnessed sound expansion with strong personal loan book performance. In general, deposits and advances grew significantly in Q2FY23.

From a PAT of Rs.2,168.13 crore in Q1FY23, BoB saw increase of 52.82%.

The difference between interest earned and interest paid, or the bank’s net interest income (NII), during the second quarter of the current fiscal year totaled 10,174.46 crores (Q2FY23) — up 34.47% from Rs.7,565.97 crores (Q2FY22). The bank reported an increase of 15.12% in Q2FY23 when compared to Q1FY23, when NII was Rs.8,838.39 crore.

In comparison to provisions of Rs.2,753.59 crore in Q2FY22 and Rs.1,684.80 crore in Q1FY23, provisions and contingencies in Q2FY23 totaled Rs.1,627.46 crore. Gross NPA was Rs.46,374.44 crore as of September 30, 2022, compared to Rs.59,503.82 crore in the September 2021 period and Rs.52,590.83 crore in the June 2022 quarter.

Gross NPA decreased significantly from 6.26% in Q1FY23 and 8.11% in Q2FY22 to 5.31% in percentage terms in Q2FY23. Additionally, the net NPA ratio decreased from 1.58% in Q1FY23 to 1.16% in Q2FY23. The bank has a provision coverage ratio of 91.73%. While this was happening, its slippage ratio decreased from 2.45% in H1 FY22 to 1.53% in H1 FY23. Credit cost for the second quarter of FY23 is 0.79%.

According to the bank’s loan book, global advances increased by more than 19% year over year to Rs.8,73,496 crore. The bank’s domestic advances increased by almost 15% year over year, while its international advances saw a strong increase of 41.7% year over year.

Under advances, the bank’s organic retail loan portfolio rose by 28.4% in Q2FY23, with growth in the personal loan portfolio accounting for 172.8% of the increase, auto loans for 29.2%, student loans for 23.2%, and home loans for 19%. Its portfolio of agricultural loans also increased by 14.1% year over year. The whole gold loan portfolio, however, witnessed a yoy gain of 27.8%.

In the meantime, the bank reported a global increase in deposits of 13.6% yoy to Rs.10,90,172 crore. Domestic deposits increased by 10.9% year over year, and foreign deposits increased by 38.3% year over year.

Domestically, Current Account Deposits increased by 7.9% year over year to reach Rs.64,873 crore in Q2FY23. Deposits in savings accounts increased by 9.4% to Rs.3,45,278 crore. Domestic CASA as a whole saw rise of 9.2% year over year.

The bank’s stock decreased by 2.43% on Friday to settle at Rs.144.55 per share on the BSE. The market value of it is roughly Rs.74,752.04 crore.