BoBs Q4 net soars 168% to Rs 4,775cr
Mumbai: Bank of Baroda (BoB) reported a net profit of Rs 4,775 crore for the quarter ended March 2023, an increase of 168% over the corresponding period last year. The rise in profits was driven by an increase in interest income and drop in provisions on bad loans.The bank ended the year with a loan book of Rs 7.6 lakh crore, an increase of 16.3% over the previous year. Deposits grew 13% to end the year at Rs 10 lakh crore. Advances rose on the back of a 26% increase in retail loans, which stood at Rs 1.7 lakh crore. The banks board has proposed a dividend of Rs 5.5 on shares with a face value of Rs 2 each. The net profit for the full year was up 94% at Rs 14,110 crore.Announcing the results, the banks MD & CEO Sanjiv Chadha said that the pressure to raise deposit rates has eased with the RBI pausing in its latest policy. Chadha said that the margins had improved as the bank had managed to get better pricing on corporate loans.Chadha said that BoB has an exposure of Rs 1,300 crore to Go First airlines, which does not include government-guaranteed loans. Of this, Rs 1,000 crore are secured against corporate guarantees and underlying securities. The bank has set aside Rs 500 crore as provisions.We do not need to raise capital to achieve our targeted loan growth of 13% as we have managed to improve our tier-one capital adequacy by one percentage point even after growing our loan book, said Chadha.The banks international business grew at a faster rate than local business. Bank of Baroda has changed its strategy to focus on GIFT City and loans from financial capitals like New York. The business from GIFT City is around $5 billion and is already the fourth largest among international markets and will become the third by FY24, said Chadha.The banks net non-performing assets fell below 1% at the end of the fourth quarter, down from 1.7% a year earlier.
Wednesday, May 17, 2023 at 1:30 am