Bank of Baroda Q3 more than doubles to Rs2,464cr on 35% lower provisioning for loan losses

5 Feb 2022 , 04:39 PM

Bank of Baroda reported 1.18% marginal rise in total consolidated revenues in the Dec-21 quarter at Rs22,073cr. Revenues of BOB were up just 0.34% on a sequential basis.

In terms of top line revenues, BOB saw marginal growth in revenues from treasury operations and from wholesale banking. However, revenues from retail banking were lower yoy.

Domestic advances grew 3.36% yoy in Dec-21 quarter with retail advances growing 11.13%. On yoy basis, CASA ratio was 308 bps higher at 44.28%. Net interest income or NII for the quarter was up 14.38% yoy at Rs8,552cr.

For the Dec-21 quarter, the operating profits were up 1.27% at Rs5,980cr. Net interest margins or NIM improved yoy by 36 bps at 3.13%, but still lower than private sector counterparts.

ROE improved by 525 bps on yoy basis at 14.37% in the Dec-21 quarter. The cost of deposits has tapered down to 3.5% while the yield on advances stands robust at 6.92%.

Cost to income ratio stood at 50.47% for Bank of India. Operating margin or OPM was almost flat at a level of 27.09% in Dec-21 quarter. OPM was higher sequentially.

Profit after tax (PAT) for the Dec-21 quarter was up by 106% at Rs2,688cr. This was largely on account of a sharp 35% fall in provisions for loan losses in the quarter at Rs2,464cr. Gross NPAs tapered lower to 7.25% in the quarter but remains high by absolute standards.

However, the net NPA ratio hints at substantial pain already provided for.  PAT margins improved sharply from 5.48% to 11.16% on a yoy basis. Net margins were also higher on a sequential basis by 131 basis points.

Financial highlights for Dec-21 compared yoy and sequentially

	Bank of Baroda
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income	₹ 22,073	₹ 21,816	1.18%	₹ 21,999	0.34%
Operating Profit	₹ 5,980	₹ 5,906	1.27%	₹ 5,832	2.54%
Net Profit	₹ 2,464	₹ 1,196	106.01%	₹ 2,168	13.65%
Diluted EPS	₹ 4.76	₹ 2.59		₹ 4.19
Operating Margins	27.09%	27.07%		26.51%
Net Margins	11.16%	5.48%		9.85%
Gross NPA Ratio	7.25%	8.48%		8.11%
Net NPA Ratio	2.25%	2.39%		2.83%
Return on Assets (Ann)	0.74%	0.37%		0.73%
Capital Adequacy	15.47%	12.93%		15.55%