Bank Of Baroda Q1 Results: Profit Nearly Doubles, NII Up 25%

Bank of Baroda's net profit nearly doubled over the previous year in the April-June quarter due to higher core income.

The lender's first-quarter net profit increased to Rs 4,070 crore as compared to Rs 2,168 crore over the same period last year, according to an exchange filing on Saturday. Analysts polled by Bloomberg estimated the bank's standalone net profit at Rs 4,121.56 crore.

Net interest income rose 24.42% year-on-year to Rs 10,997 crore.

The bank's asset quality position improved, with the gross non-performing asset ratio declining to 3.51% from 3.79% in the previous quarter. The net NPA ratio declined to 0.78% from 0.89%, sequentially.

The growth in profitability was supported by healthy operating income growth of 42.9% year-on-year in the April-June quarter, Bank of Baroda said in a statement accompanying the earnings. That, in turn, was driven by the growth in net interest income.

Other Key Highlights

• Domestic advances up 16.8% YoY at Rs 8,12,626 crore.

• Global advances up 18% YoY at Rs 9,90,988 crore.

• Global deposits up 16.2% YoY at Rs 11,99,908 crore.

• Domestic deposits up 15.5% YoY at Rs 10,50,306 crore.

• International deposits up 21% YoY at 1,49,602 crore.

The domestic CASA ratio stood at 0.40.

The surge in advances was driven by the retail loan book. Organic retail advances grew 24.8% year-on-year on the back of demand for personal loans (up 82.9%), as well as auto loans (up 22.1%), home loans (up 18.4%) and education loan (20.8%).

On Friday, shares of Bank of Baroda fell 0.93% to Rs 191.45 apiece, even as the benchmark Sensex ended the day 0.74% higher at 65,721.25 points.