Q4FY23 Quarterly & FY23 Annual Result Announced for Bank of Baroda
Bank of Baroda announced Q4FY23 & FY23 results: Bank of Baroda (BOB) reported a ~2x growth in profits for FY23 and declared it's highest ever quarterly and annual net profit of Rs 4,775 crore (+168% YoY) and Rs 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) ; RoA for Q4FY23 improves by 77 bps YoY to 1.34% Similarly, Bank's Return on Equity (RoE) for FY23 increases 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. Sustained NII growth is attributable to growth in advances of 18.5% (YoY) coupled with traction in Net Interest Margins (NIM), which grew 16 bps QoQ/ 45 bps YoYto end the quarter at 3.53% and 28 bps YoY for the full year FY23. Strong growth in Income coupled with subdued increase in Opex has resulted in robust Operating profit growth of 43.3% YoY for Q4FY23 and 20% YoY for the financial year 2023. The Bank has been able to effect a reduction in the Cost to Income ratio by 152 bps and reported a Cost to Income ratio of 47.72% for FY23. BOB has witnessed significant improvement in its Asset quality with sharp reduction in GNPA by 282 bps YoY & 74 bps QoQ to 3.79%. Bank's NNPA improved to 0.89% with a reduction of 83 bps YoY and 10 bps QoQ. BOB's Provision Coverage Ratio (PCR) remained healthy at 92.43% with TWO & at 77.19% without TWO. This strong and sustainable improvement in asset quality has resulted in record low Credit Cost for the Bank at 0.14% for Q4FY23 & 0.53% for FY23. 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 Rs 21,73,236 crore as of 31 st March 2023, registering a growth of 16.6% YoY. The Board of the Bank has recommended to declare a dividend of Rs 5.5 per share, subject to requisite approval Result PDF16-05-2023
