BANK OF BARODA ANNOUNCES FINANCIAL RESULTS FOR Q1 FY2022
The Bank reported a Net profit at Rs 1,209 crore on the back of a robust 15.8% YOY growth in Net Interest Income (NII) to Rs 7,892 crore. Resultantly, there has been a significant rise in RoA at 0.42% and RoE of 8.63%. Operating profit increases by a robust 41.2% to Rs 5,707 crore. Cost to income ratio fell to 47.45%, a decline of 574 bps over the previous year. Gross NPA position improved to 8.86% from 9.39% in the same period last year. Bank’s capital adequacy ratio (CRAR) increases to 15.4%. Global Net interest margin (NIM) exceeds 3% at 3.04%. Domestic NIM at 3.12%. Bank reoriented its Loan book to high yield segments. Organic retail loans increased by 11.8% YoY. Within retail loans, auto loans increased by 25.0% YoY and personal loans grew by 19.5% YoY. Gold loans increased by 37.7% YoY. The Bank also brought down its Cost of deposits significantly by 103 bps to 3.92%. CASA Deposits increased by 12.7% YoY with the domestic CASA ratio increasing to 43.21% from 39.49% last year, an increase of 372 bps YoY.
Highlights
- Domestic deposits increased by 3.0% YoY led by 12.7% YoY increase in domestic CASA deposits. CA deposits increased by 21.1% YoY and Savings deposits by 11.2% YoY respectively. Domestic CASA ratio increased to 43.21%, an increase of 372 bps YoY. Domestic cost of deposits declined by 103 bps YoY to 3.92% in Q1FY22.
- Domestic advances fell by 2.3% YoY due to run-off of low yielding corporate loans. Organic retail loans increased by 11.8% YoY, agriculture loans by 9.4% YoY and organic MSME advances increased by 6.9% YoY. Within retail loans, auto loans increased by 25.0% YoY and personal loans grew by 19.5% YoY. Gold loans increased by 37.7% YoY.
- NII increased to Rs 7,892 crore in Q1FY22 compared with Rs 6,816 crore in Q1FY21, an increase of 15.8% YoY.
- Global NIM increased to 3.04% in Q1FY22 compared with 2.52% in Q1FY21 led by domestic margins which have now increased to 3.12% in Q1FY22 from 2.59% in Q1FY21.
- Non-interest income during Q1FY22 increased by 63.4% YoY to Rs 2,970 crore boosted by fee income which increased by 28.0%. Non-fee income increased by 128.4% YoY led by trading gains and recovery from TWO.
- Operating Profit for Q1FY22 increased to Rs 5,707 crore thus registering an increase of 41.2% YoY. Cost to income ratio fell by 574 bps YoY to 47.45% in Q1FY22.
- Credit cost in Q1FY22 fell to 1.36% as against 1.78% in Q1FY21, a decline of 42 bps YoY.
- Bank reported a standalone Profit before Tax of Rs 1,595 crore in Q1FY22 and Net Profit of Rs 1,209 crore. For the consolidated entity, Profit before Tax and Net Profit stood at Rs 1,611 crore and Rs 1,187 crore respectively.
- Gross NPA ratio declined to 8.86% as on June 30, 2021 against 9.39% as on June 30, 2020. Recovery and upgrades increased to Rs 4,435 crore in Q1FY22 as against Rs 818 crore in Q1FY22. Bank’s NNPA ratio increased to 3.03% as on June 30, 2021 as against 2.83% as on June 30, 2020.
- Capital adequacy (CRAR) on standalone basis stands at 15.40% with CET-1 at 11.25% as on June 30, 2021 as against 12.84% and 9.08% respectively as on June 30, 2020. For the consolidated entity, CRAR and CET-1 stand at 16.38% and 12.35% respectively.
- Bank reported RoA and RoE of 0.42% and 8.63% respectively in Q1FY22.
Highlights
- Domestic deposits increased by 3.0% YoY led by 12.7% YoY increase in domestic CASA deposits. CA deposits increased by 21.1% YoY and Savings deposits by 11.2% YoY respectively. Domestic CASA ratio increased to 43.21%, an increase of 372 bps YoY. Domestic cost of deposits declined by 103 bps YoY to 3.92% in Q1FY22.
- Domestic advances fell by 2.3% YoY due to run-off of low yielding corporate loans. Organic retail loans increased by 11.8% YoY, agriculture loans by 9.4% YoY and organic MSME advances increased by 6.9% YoY. Within retail loans, auto loans increased by 25.0% YoY and personal loans grew by 19.5% YoY. Gold loans increased by 37.7% YoY.
- NII increased to Rs 7,892 crore in Q1FY22 compared with Rs 6,816 crore in Q1FY21, an increase of 15.8% YoY.
- Global NIM increased to 3.04% in Q1FY22 compared with 2.52% in Q1FY21 led by domestic margins which have now increased to 3.12% in Q1FY22 from 2.59% in Q1FY21.
- Non-interest income during Q1FY22 increased by 63.4% YoY to Rs 2,970 crore boosted by fee income which increased by 28.0%. Non-fee income increased by 128.4% YoY led by trading gains and recovery from TWO.
- Operating Profit for Q1FY22 increased to Rs 5,707 crore thus registering an increase of 41.2% YoY. Cost to income ratio fell by 574 bps YoY to 47.45% in Q1FY22.
- Credit cost in Q1FY22 fell to 1.36% as against 1.78% in Q1FY21, a decline of 42 bps YoY.
- Bank reported a standalone Profit before Tax of Rs 1,595 crore in Q1FY22 and Net Profit of Rs 1,209 crore. For the consolidated entity, Profit before Tax and Net Profit stood at Rs 1,611 crore and Rs 1,187 crore respectively.
- Gross NPA ratio declined to 8.86% as on June 30, 2021 against 9.39% as on June 30, 2020. Recovery and upgrades increased to Rs 4,435 crore in Q1FY22 as against Rs 818 crore in Q1FY22. Bank’s NNPA ratio increased to 3.03% as on June 30, 2021 as against 2.83% as on June 30, 2020.
- Capital adequacy (CRAR) on standalone basis stands at 15.40% with CET-1 at 11.25% as on June 30, 2021 as against 12.84% and 9.08% respectively as on June 30, 2020. For the consolidated entity, CRAR and CET-1 stand at 16.38% and 12.35% respectively.
- Bank reported RoA and RoE of 0.42% and 8.63% respectively in Q1FY22.
Bank of Baroda announced its results for the Quarter ended June 30, 2021, following the approval of its Board of Directors on August 7, 2021.
| Particulars (INR crore) | Q1FY21 | Q4FY21 | Q1FY22 | YoY (%) |
| Interest Income | 18,494 | 16,685 | 17,053 | -7.79 |
| Interest Expenses | 11,678 | 9,578 | 9,161 | -21.55 |
| Net Interest Income (NII) | 6,816 | 7,107 | 7,892 | 15.79 |
| Non- Interest Income | 1,818 | 4,848 | 2,970 | 63.37 |
| Operating Income (NII+ Other Income) | 8,634 | 11,955 | 10,862 | 25.80 |
| Operating Expenses | 4,593 | 5,689 | 5,154 | 12.21 |
| Operating Profit | 4,042 | 6,266 | 5,707 | 41.20 |
| Total Provisions (other than tax) and contingencies | 5,350 | 3,586 | 4,112 | -23.14 |
| of which, Provision for NPA | 3,458 | 4,593 | 2,557 | -26.06 |
| Profit before Tax | -1,308 | 2,680 | 1,595 | |
| Provision for Tax | -444 | 3,726 | 387 | |
| Net Profit | -864 | -1,047 | 1,209 | |
| NIM % (Domestic) | 2.59 | 2.73 | 3.12 |
Business details
| Particulars (INR crore) | Jun 30, 2020 | Mar 31, 2021 | Jun 30, 2021 | YoY (%) |
| Domestic deposits | 8,13,530 | 8,58,413 | 8,37,803 | 2.98 |
| Domestic CASA | 3,21,229 | 3,68,027 | 3,62,044 | 12.71 |
| Global deposits | 9,34,461 | 9,66,996 | 9,31,317 | -0.34 |
| Domestic advances | 6,15,038 | 6,41,076 | 6,00,971 | -2.29 |
| Of which, retail loan portfolio (ex-portfolio purchase) | 1,07,096 | 1,20,256 | 1,19,729 | 11.80 |
| Global advances | 7,36,547 | 751,590 | 7,11,487 | -3.40 |
| Particulars | Jun 30, 2020 | Mar 31, 2021 | Jun 30, 2021 |
| CRAR (%) | 12.84 | 14.99 | 15.40 |
| Tier-1 (%) | 10.33 | 12.67 | 13.06 |
| CET-1 (%) | 9.08 | 10.94 | 11.25 |
| Gross NPA (%) | 9.39 | 8.87 | 8.86 |
| Net NPA (%) | 2.83 | 3.09 | 3.03 |
| PCR (with TWO) (%) | 83.30 | 81.80 | 83.14 |
| Particulars | Q1FY21 | Q4FY21 | Q1FY22 |
| Credit Cost (%) | 1.78 | 2.46 | 1.36 |
August 7, 2021
Mumbai
About Bank of Baroda
Bank of Baroda (“The Bank”) established on July 20, 1908 is an Indian state-owned banking and financial ser vices organization, headquartered in Vadodara (earlier known as Baroda), in Gujarat, India. Under the ‘Alte rnative Mechanism’ scheme, the Government announced the amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda which came into effect on April 1, 2019.
Bank of Baroda is one of India’s largest banks with a strong domestic presence spanning 8,192 branches and 11,637 ATMs and Cash Recyclers supported by self-service channels. The Bank has a significant international presence with a network of 96 overseas offices spanning 19 countries.
Visit us at
Website:www.bankofbaroda.com
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For further details, please contact:
Mr. Sameer Narang
Chief Economist
Bank of Baroda
Phone: +91 22 6698 5713
Email: chief.economist@bankofbaroda.com
