Bank Of Baroda Q4 Results: Profit Up 2%, Asset Quality Improves
Net interest income, or core income, rose 2.3% year-on-year to Rs 11,792 crore during the quarter.
Bank of Baroda reported 2.3% year-on-year rise in net profit to Rs 4,886 crore in the quarter-ended March, beating analysts' estimates, according to an exchange filing on Friday.
Analysts polled by Bloomberg had pegged the net profit at Rs 4,533.64 crore. Sequentially, the net profit was up 6.7%.
The bottom line was weighed down by rise in operating expenses during the quarter. At the same time, other income grew 20.9% year-on-year to Rs 4,191.5 crore in Q4.
Net interest income, or core income, rose 2.3% year-on-year to Rs 11,792 crore during the quarter.
The net interest margin stood at 3.27%, down 26 basis points from the previous year. Further, the growth in yield on advances outpaced the rise in cost of deposits, thereby improving margin by 17 bps sequentially.
Bank Of Baroda Q4 FY24 Key Highlights (Standalone)
Net profit up 2.3% to Rs 4,886 crore (YoY).
Net interest income up 2% to Rs 11,792 crore (YoY).
Gross NPA at 2.92% vs 3.08% (QoQ).
Net NPA at 0.68% vs 0.70% (QoQ).
Under operating expenses, employee costs rose 20% on a yearly basis to Rs 4,546 crore in the quarter under review.
The bank has estimated an additional liability, on account of revision in family pension for employees, amounting to Rs 1,454.41 crore. However, the bank amortised these provisions over a period of five years in accordance with Reserve Bank of India's circular.
Hence, the bank chose to provide Rs 72.8 crore and Rs 290.9 crore for the quarter and year-ended March 31, respectively, and the balance unamortised expense of Rs 581.8 crore has been carried forward, the public sector bank said in its filing.
"If the bank had charged the remaining additional amount, the net profit for the quarter would have been lower by Rs 435.3 crore," the bank said.
The bank's domestic deposits grew 7.7% year-on-year in Q4 to Rs 11.28 lakh crore, while total domestic gross advances rose nearly 13% year-on-year to Rs 8.98 lakh crore in the quarter under review.
Bank of Baroda's retail advances, excluding pool purchase, registered a healthy growth of 20.7% from a year ago to Rs 2.14 lakh crore.
The bank's capital adequacy ratio stood at 16.31%, as on March 31, up 7 bps from a year ago. The CET-I ratio came in at 12.54%.
