Bank of Baroda (BOB), one of the leading Public Sector Banks, published its results for the final quarter of FY 2022-23 on Tuesday.
BOB reported a two times growth in profits for FY23 and declared it's highest ever quarterly and annual net profit of INR 4,775 crore (+168% YoY) and INR 14,110 crore (+94% YoY) respectively.
As a result of this significant improvement in profitability the Bank's Return on Assets (RoA) for FY23 improved by 43 bps YoY to 1.03% (FY23).
Similarly, Bank's Return on Equity (RoE) for FY23 increased by 648 bps YoY to 18.34%; RoE for Q4FY23 stands 24.82%, up by 1321 bps YoY. This robust growth in profitability was supported by healthy Net Interest Income (NII) growth of 33.8% & 26.8% for Q4FY23 & FY23 respectively.
BOB has witnessed significant improvement in its Asset quality with sharp reduction in Gross NPA.
The Gross NPA of the Bank reduced by 32% YoY to INR 36,764 crore in Q4FY23 and Gross NPA Ratio improved to 3.79% in Q4FY23 from 6.61% in Q4FY22. The Net NPA Ratio of the Bank stands at a record low of 0.89% in Q4FY23 as compared with 1.72% in Q4FY22.
BOB's Global Advances registered a strong YoY growth of 18.5% in Q4FY23 led by robust retail loan book growth. Bank's organic Retail Advances grew by 26.8%, driven by growth in high focus areas such as Auto Loan (24.4%), Home Loan (19.5%), Personal Loan (101.5%), Mortgage Loan (18.0%), Education Loan (21.8%). Bank achieved a total business of INR 21,73,236 crore as of 31st March 2023, registering a growth of 16.6% YoY.
BOB's Domestic CASA deposits registered a growth of 7.9% YoY and stands at INR 4,42,511 crore. Domestic Saving deposits grew by 7.6% on a YoY basis in Mar'23 and Domestic Current deposits registered a growth of 9.2% YoY.