InvestorQ : Can I have your quick view on the Bank of Baroda results announced yesterday?
Khushi Patel made post

Can I have your quick view on the Bank of Baroda results announced yesterday?

Dhwani Mehta answered.
10 months ago

For the quarter ended Sep-21, Bank of Baroda reported absolutely flat growth of 0.63% in total revenues at Rs.21,999 crore. Revenues from treasury were flat but the revenues from corporate banking were 15.6% lower at Rs.6,920 crore while retail banking revenues were up 10% at Rs.7,103 crore.

The scenario changes drastically when you look at the operating profit by vertical. For example, the operating profits of corporate banking vertical recovered nearly 16-fold to Rs.1,042 crore, albeit due to a low base, but the retail banking saw operating profits dip by 21% to Rs.7,103 crore as asset quality issues in the retail portfolio came to the fore.

Net profits for Sep-21 quarter was up 22.39% at Rs.2,168 crore, largely helped along by lower interest cost and lower provisions made for doubtful assets. The profits also gained from the CASA ration improving by 368 bps, thus reducing cost of funding. Also, the cost to income ratio fell by nearly 70 bps to 48.54%, while net interest margins or NIMs expanded by 7 bps to 2.85%.

While the NIMs are still lower on peer group comparison, the good news is that gross NPAs fell by 100 bps to 8.11%. However, the gross NPAs remain quite high by absolute benchmarks. Net profit margin for Sep-21 quarter stood at 9.85% compared to 8.10% in Sep-21 quarter and much better than 5.58% in the Jun-21 quarter.