Bank stock revises dividend upwards for FY22. Details inside

Bank of Baroda (BoB) has revised its final dividend upwards to ₹2.85 per equity share for the FY 2021-22, subject to the shareholder's approval, from ₹1.20 per equity share its board had proposed to declare earlier.

“The board of directors of at its meeting held recommended a revised dividend at ₹2.85 per equity share (Face Value Rs.2/- each fully paid up) for the FY2021-22 subject to declaration/approval at the ensuing 26th Annual General Meeting (AGM),” the bank had informed in an exchange filing this week. 

Earlier the lender's board of directors in their meeting held on 13th May 2022, had recommended Dividend at ₹1.20 per equity share for the said financial year.

Bank of Baroda reported a net profit of ₹1,779 crore in three months to March 2022 as compared with a loss of ₹1,046 crore in the last year period. The net interest income (NII) grew 21% to ₹8,612 crore in the fourth quarter as against ₹7,107 crore in the year-ago period.

Net Interest Margin (NIM) in the fourth quarter stood at 3%, an increase of 36 bps compared to the same quarter of FY21. Gross non performing asset (NPA) ratio improved to 6.61% from 8.87% from the year-ago period. The net NPA ratio improved to 1.72% as compared with 3.09% . Slippages for the year were contained at 1.61%.

Bank of Baroda's provision coverage ratio (PCR) stood at 88.7% including technical write off accounts and 75.28% excluding two accounts in Q4FY22.