BANK OF BARODA ANNOUNCES FINANCIAL RESULTS FOR Q2FY22

BOB quadruples Net profit in HY ended Sep’21 over HY ended Sep’20Net profit for the quarter up by 24.39% YoYGross NPA ratio declined to 8.11% in Sep’21 from 9.14% in Sep’20Domestic CASA up by 13.01% YoY, domestic CASA Ratio improved by 368 bps YoYCost to income ratio improved by 61 bps to 48.54% in H1FY22 as against 49.15% in H1FY21.Healthy Capital base – CRAR improved to 15.55% in Sep’21 from 13.26% in Sep’20

Key Highlights

v  The domestic CASA of the Bank marked a growth of 13.01% on a YoY basis.

v  Operating profit grew by 5.76% on a YoY basis.

v  Net profit of the Bank marked a YoY growth of 24.39%, increased to INR 2,088 crore in Q2FY22 against INR 1,679 crore in Q2FY21. Net profit increased to INR 3,296 crore in H1FY22 from INR 814 crore in H1FY21.

v  Gross NPA of the Bank significantly improved to 8.11% in Sep’21 from 9.14% in Sep’20.

v  Global Net Interest Margin (NIM) increased to 2.85% in Sep’21 from 2.78% in Sep’20.

v  Global Advances of the Bank increased by 2.10% YoY to INR 7,34,033 crore.

v  Domestic Advances of the Bank increased to INR 6,23,368 crore, up by 2.99% on a YoY basis.

Business Performance

v  Global Deposits increased by 0.54% to INR 9,59,483 crore on a YoY basis. Domestic Deposits increased by 3.43% to INR 8,64,603 crore in Sep’21.

v  Domestic Current Account Deposits stood at INR 60,098 crore, registering a YoY growth of 15.34% and Domestic Savings Bank Deposits grew by 12.58% to INR 3,15,668 crore. Overall Domestic CASA registered a growth of 13.01% on a YoY basis.

v  Organic Retail loan portfolio of the Bank grew by 10.25% on a YoY basis, led by growth in Personal loan portfolio which stood at 33.12%, 23.17% growth in Auto loan and 11.09% in Education loan.

v  Agriculture loan portfolio grew by 7.39% on a YoY basis and stood at INR 1,00,748 crore

v  Organic MSME portfolio of the Bank increased by 4.12% and stood at INR 89,339 crore.

Profitability

v  Net Interest Income (NII) increased to INR 7,566 crore in Q2FY22 as against INR 7,410 crore in Q2FY21, registering a growth 2.11% YoY.

v  Non-Interest Income during Q2FY22 increased by 22.99% YoY to INR 3,579 crore

v  Operating Income of the Bank increased by 8.00% YoY to INR 11,145 crore in Q2FY22.

Operating Income for H1FY22 registered a growth of 12.71% and stood at INR 21,901 crore as against INR 19,432 crore in H1FY21.

v  Cost of Deposits reduced to 3.52% in Sep’21 as against 3.99% in Sep’20. Yield on Advances stood at 6.55% in Sep’21 as compared with 7.08% in Sep’20.

v  Operating Profit of the Bank increased to INR 5,670 crore in Q2FY22, up by 5.76% on a YoY basis.

v  Bank reported a standalone Net Profit of INR 2,088 crore in Q2FY22 as against INR 1,679 crore in Q2FY21, registering a growth of 24.39% YoY.

v  Global NIM increased to 2.85% in Q2FY22 from 2.78% in Q2FY21.

v  Return on Assets (RoA) improved to 0.73% in Sep’21 from 0.59% in Sep’20.

v  For the consolidated entity, Net Profit stood at INR 2,168 crore in Q2FY22 as against INR 1,771 crore in Q2FY21.

Asset Quality

v  The Gross NPA of the Bank reduced to INR 59,504 crore in Q2FY22 from the level of INR 65,698 crore in Q2FY21. Subsequently the Gross NPA Ratio improved to 8.11% in Q2FY22 from 9.14% in Q2FY21.

v  The Net NPA Ratio of the Bank stood at 2.83% in Q2FY22 as compared with 2.51% in Q2FY21.

v  The Provision Coverage Ratio of the Bank stood at 83.42% including TWO and 67.06% excluding TWO in Q2FY22.

Capital Adequacy

v  CRAR of the Bank improved to 15.55% in Sep’21 from 13.26% in Sep’20. Tier-I stood at 13.21% (CET-1 at 11.39%, AT1 at 1.82%) and Tier-II stood at 2.34% as of Sep’21.

v  The CRAR and CET-1 of consolidated entity is at 16.06% and 12.02% respectively