The public sector lender Bank of Baroda (BoB) announced its earnings for quarter 1 of fiscal 2024 on July 31.
Bank of Baroda's net profit for the first quarter of FY25, which ended on June 30, increased by 6.1 per cent to Rs 4,727.81 crore. In the first quarter of FY24, which ended in June 2023, it reported a net profit of Rs 4,452.10 crore.
NII (net interest margin)
Net interest income (NII) rose 5.5 per cent to Rs 11,600 crore from Rs 10,996.7 crore in the same quarter of FY24. NII is the difference between the interest income a bank receives from its lending activities and the interest it pays to depositors.
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In Q1 FY25, net interest margin (NIM) decreased by nine basis points (bps) to 3.18 percent, from 3.27 percent in Q1 FY24, the quarter that ended in June 2023.
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Net and gross NPA (non performing assets)
With gross non-performing assets (NPAs) falling from 3.51 per cent in June 2023 to 2.88 per cent in June 2024, the asset quality profile improved. Additionally, net NPAs decreased from 0.78 per cent to 0.69 per cent in June 2024.
With a gross non-performing assets (NPA) ratio of 2.5 per cent, the bank is attempting to further enhance asset quality
From June 2023 to June 2024, the provisioning coverage ratio (PCR) with written-off accounts increased from 93.23 per cent to 93.32 per cent.
CASA deposits Q1 FY25
As of June 2024, domestic deposits had increased 5.3 per cent annually to Rs 11,05,460 crore, indicating a positive trend as well. By the end of June, domestic CASA (current account savings account) deposits had grown by 6 per cent annually to Rs 4,49,019 crore.
The amount of foreign deposits increased by 34.7 per cent year over year to Rs 2,01,534 crore.
Loan portfolio
The bank saw notable expansion in lending, as evidenced by its organic retail advances, which increased by 20.9 per cent annually. Among the noteworthy segments were the following: personal loans increased by 39.2 per cent, auto loans by 25.1 per cent, home loans by 14.7 per cent, mortgage loans by 11 per cent, and education loans by 18.8 per cent.
The portfolio of loans for agriculture increased by 9.1 per cent annually to Rs 1,39 lakh crore, while the portfolio of loans for gold (which includes retail and agriculture) increased by 20.3 per cent annually to Rs 48.9 thousand crore.
