Bank of Baroda share Price Today

Bank of Baroda is among leading PSU banks with a global loan book of ~₹ 9.7 lakh crore and has better operating metrics among PSBs.

• Pan-India presence with ~8200 branches
• The bank has a meaningful presence in international operations with its JVs and subsidiaries. Total ~18% of total business comes from overseas

Strong quarter led by NIM expansion and lower credit cost

• NII up 33.8% YoY at ₹ 11525 crore, NIMs up 16 bps QoQ at 3.5%
• C/I down 324 bps YoY to 46%; provisions down 40.9% QoQ
• PAT at ₹ 4775 crore, up 2.7x YoY, ahead of our estimate
• GNPA down 74 bps QoQ to 3.79%, slippage ratio below 1%

Bank of Baroda announced Q2FY24 & H1FY24 results:

• Bank of Baroda (BOB) quarterly Net profit higher by 28.4% YoY at Rs 4,253 crore in Q2FY24. Net Profit for H1FY24 grew by 51.8% to Rs 8,323 crore,
• BOB has delivered ROA of more than 1% and ROE of around 20%, consistently for the last 5 quarters.
• ROA for Q2FY24 stands at 1.14% and ROE at 19.74%.
• The growth in profitability was supported by healthy Operating Income growth of 25% YoY in Q2FY24.
• Operating income growth was augmented by ~2x YoY growth in Non-Interest Income in Q2FY24.
• Non-interest income growth in Q2FY24 was driven by robust YoY growth in Fee Income ( 31.7%), Trading Gains ( 69.5%) and Recovery from TWO (~2x)
• Strong growth in Income coupled with a subdued increase in Opex has resulted in robust Operating profit growth of 33% YoY for Q2FY24. Operating profit for H1FY24 higher by 50.1% YoY.
• The Bank has been able to effect a reduction in the Cost to Income ratio by 320 bps YoY to 46.54% for Q2FY24. The cost to Income ratio for H1FY24 has also declined by 608 bps YoY to 45.97%.
• BOB has witnessed significant improvement in its Asset quality with reduced GNPA by 199 bps YoY to 3.32%. The bank's NNPA improved to 0.76%, a reduction of 40 bps YoY.
• BOB's balance sheet remained robust with a healthy Provision Coverage Ratio (PCR) of 93.16% with TWO & 77.64% without TWO.
• Credit cost remains below 1% at 0.92% for Q2FY24.
• BOB's Global Advances registered a strong YoY growth of 17.3% in Q2FY24 led by robust retail loan book growth.
• The bank's organic Retail Advances grew by 22.2%, driven by growth in high-focus areas such as Auto Loans (21.1%), Home Loan (16.1%), Personal Loan (67.2%), Mortgage Loan (13.3%), Education Loan (18.3%).
• Bank achieved a total business of Rs 22,74,148 crore as of September 30, 2023, registering a growth of 16.8% YoY.

Result PDF