Bank of Baroda (BOB) Net profit for FY2022 grows 9x to reach INR 7,272 crore

Key Highlights

• Bank of Baroda (BOB) Net profit for FY2022 grows 9x to reach INR 7,272 crore
• Net profit in (Q4FY22) stood at INR 1,779 crore
• Advances grew by 8.9% YoY in FY22
• Organic Retail Advances grew by ~17%, led by growth in high focus areas such as

  Home Loan (11.3%), Personal Loan (108%), Auto Loan (19.5%), Education Loan (16.7%)

• Domestic CASA ratio of the bank improved by 137 bps YoY to 44.24%.
• GNPA at 6.61% a reduction of 226 bps YoY
• NNPA at 1.72% a reduction of 137 bps YoY in FY22.
• Provision coverage ratio (PCR) at 75.28% w/o TWO
• Net Interest Margins improved by 32 bps YoY to 3.03% in FY22.
• NIM for Q4FY22 was 3.08% (an increase of 36 bps compared to Q4FY21)
• Healthy Capital base – CRAR improved to 15.98% in Mar’22 from 14.99% in Mar’21 The Board of Directors have recommended a dividend of INR 1.20 per equity share (60%) for the year ended March 31 2022 (subject to necessary approvals).

  Business Performance

  • ❖  Global Advances of the Bank increased to INR 8,18,120 crore, +8.9% YoY and 6% QoQ as of Mar’22.
  • ❖  Domestic Advances of the Bank increased to INR 6,84,153 crore, +6.7% YoY and 4.6% QoQ as of Mar’22.
  • ❖  Global Deposits increased by 8.2% YoY to INR 10,45,939 crore. Domestic Deposits increased by 8.0% YoY to INR 9,27,011 crore in Mar’22.
  • ❖  Domestic Current Account Deposits stands at INR 68,780 crore, registering a robust growth of 11.6% on a YoY basis.
  • ❖  Domestic Savings Bank Deposits grew by 11.4% to INR 3,41,343 crore. Overall Domestic CASA registered a growth of 11.4% on a YoY basis.
    • ❖  Organic Retail loan portfolio of the Bank grew by 16.8% led by growth in Personal loan portfolio by 108.1%, Auto loan by 19.5% and Education loan by 16.7% on a YoY basis.
    • ❖  Agriculture loan portfolio grew by 10.3% YoY to INR 1,09,796 crore.
    • ❖  Organic MSME portfolio grew by 5.4% YoY to INR 96,863 crore.

    0. Profitability
       • ❖  Net Interest Income grew by 21.2% to INR 8,612 crore in Q4FY22 and 13.2% YoY to INR 32,622 crore in FY22.
       • ❖  Fee Income for the year grew by 12.6% YoY at INR 6,409 crore and 5.8% YoY for the quarter to INR 1,848 crore.
       • ❖  Operating Income for FY22 registered a growth of 5.7% YoY at INR 44,106 crore.
       • ❖  Cost of Deposits reduced to 3.53% in Q4FY22 as against 3.71% in Q4FY21.
       • ❖  Operating Profit for FY22 stands at INR 22,389 crore registering a growth of 5.6% YoY.
       • ❖  Bank reported a standalone Net Profit of INR 1,779 crore in Q4FY22 as against a loss of

         INR 1,047 crore in Q4FY21.The Net Profit for FY22 increased to INR 7,272 crore in Mar’22

         (777%) from INR 829 crore in FY21.

       • ❖  Global NIM increased to 3.08% in Q4FY22 from 2.72% in Q4FY21.
       • ❖  Return on Assets (RoA) improved to 0.60% in FY22 from 0.07% in FY21.
       • ❖  Return on Equity (RoE) increased sharply by 1016 bps YoY to 11.66%
       • ❖  For the consolidated entity, Net Profit stood at INR 7,850 crore in FY22 as against INR1,548 crore in FY21.