Bank of Baroda Q1FY24 results: Net profit jumps 87.7% YoY, NPA dips over 40%

Bank of Baroda Q1 results 2023-24: State-owned bank, Bank of Baroda has declared its Q1FY24 results today. Sharing its first quarter results for the current financial year, the PSU bank reported 87.72 per cent YoY jump in net profit during April to June 2023 quarter.  This robust growth in profitability was supported by healthy Operating Income growth of 42.9 per cent YoY in Q1FY24.

The state-owned lender claimed that strong growth in income coupled with subdued increase in Opex has resulted in robust Operating profit growth of 73 per cent YoY for Q1FY24.

Bank of Baroda Q1FY24 net profit

In Q1FY24, the PSU bank reported a net profit of ₹4,070.1 crore, logging 87.72 per cent rise against the net profit of ₹2,168.1 crore in Q1FY23. However, the PSU bank's first quarter results for the current fiscal is below market estimates. Market had estimated net profit of the PSU lender at around ₹4,630 crore.

Bank of Baroda total income in Q1FY24

In first quarter of the financial year 2023-24, total income of BoB stands at ₹29,878.07 crore, which is 48.50 per cent higher from its total income of ₹20,119.52 crore in Q1FY23. On sequential basis, Bank of Baroda recorded marginal gain as its total income in Q4FY23 stood at 29,322.74 crore.

NPA dips in April-June 2023 quarter

During April to June 2023 quarter, Bank of Baroda has managed to contain its Non Performing Asset (NPA) on both sequential and year-on-year basis. The public sector undertaking bank reported dip in net NPA from ₹12,652.74 crore in Q1FY23 to ₹7,482.45 crore in recently ended June 2023 quarter, clocking around 40.86 per cent dip in YoY terms. On sequential basis, net NPA of BoB came down from ₹8,384.32 crore in Q4FY23 to ₹7,482.45 crore in Q1FY24, logging near 10.75 per cent dip during April to June 2023 quarter of FY 2023-24.

Improvement in asset quality

BOB has witnessed significant improvement in its Asset quality with reduction in GNPA by 275 bps YoY to 3.51 per cent. Bank’s NNPA improved to 0.78 per cent with a reduction of 80 bps YoY.

Operating income growth was driven by strong Net Interest Income (NII) growth of 24.4 per cent YoY in Q1FY24 coupled with robust growth in Non-Interest Income which grew 2.8 times YoY.

In Q4FY23, the public sector bank reported its highest-ever quarterly net profit of ₹4,775 crore against a profit of ₹1,778.77 crore in Q4FY22. The net interest income (NII) of the lender increased 34% to ₹11,525 crore during January to March 2023 quarter from ₹8,612 crore, YoY. Net interest margin (NIM) rose to 3.31% from 3.03%, YoY. The asset quality during the quarter also improved while deposit growth remained strong.

Bank of Baroda shares dip ahead of Q1 results

Bank of Baroda shares ended on Friday at ₹190.05 apiece levels, logging near 6 per cent loss in the week gone by.

(This is a developing story. Please refresh after for further updates)