Bank of Baroda Q1 Result | Profit spikes 79% to Rs 2,168 crore; other income, operating profit decline – Moneycontrol

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Public sector lender Bank of Baroda on July 30 reported a massive 79.4 percent year-on-year growth in standalone profit at Rs 2,168 crore for the quarter ended June 2022, despite fall in other income and pre-provision operating profit. The significant decline in bad loans provisions aided the bottom line.

Net interest income during the June quarter grew by 12 percent to Rs 8,838.4 crore compared to year-ago period, with credit growth at 18 percent and 10.9 percent YoY increase in global deposits.

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“Global advances increased by 18 percent YoY to Rs 8.39 lakh crore with domestic advances growth of 15.7 percent YoY at Rs 6.95 lakh crore, while global deposits rose by 10.9 percent YoY to Rs 10.32 lakh crore with domestic deposits growing 8.5 percent to Rs 9.09 lakh crore,” Bank of Baroda said in its BSE filing.

The bank further said the net interest margin at 3.02 percent for the June quarter contracted 6 bps QoQ and 2 bps YoY.

Total provisions and contingencies fell sharply by 58 percent YoY to Rs 1,684.80 crore for the quarter ended June 2022 and the sequential decline was 55 percent, while bad loans provisions dropped by 39 percent YoY to Rs 1,560 crore for the quarter.

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Gross non-performing assets as a percentage of gross advances improved by 35 bps sequentially to 6.26 percent and net NPAs declined by 14 bps QoQ to 1.58 percent in Q1FY23.

Bank of Baroda reported a significant fall of 59 percent YoY in Q1FY23 non-interest income (other income) at Rs 1,182 crore, while pre-provision operating profit dropped 19.2 percent YoY to Rs 4,527.52 crore.

“The core operating profit (excluding treasury gains or loss, and interest on IT refund) increased by 11 percent YoY to Rs 5,301 crore in Q1FY23,” the bank said.