Bank of Baroda Q2 Results: Net Profit Rises 28% & Beats Estimates

Bank of Baroda, one of India’s leading public sector banks, has announced its Q2 results for the fiscal year 2023-24. The bank’s standalone net profit rose 28.3% to Rs 4,253 crore year-on-year, beating analyst estimates. The net profit rose mainly on higher other income, which more than doubled (up 128%) year-on-year to Rs 4,171 crore. The net interest income, or core income, rose 6.4% year-on-year to Rs 10,831 crore.

However, the net interest margin fell 26 basis points quarter-on-quarter to 3.07%, from the previous 3.27%. Credit cost for the bank stood at 0.92%, compared to 0.70% quarter-on-quarter. Asset quality for the lender also improved with gross non-performing asset ratio falling 19 basis points to 3.32% quarter-on-quarter. Net NPA ratio also improved to 0.76% sequentially, compared to 0.78% .

Bank of Baroda Q2 Results Preview

Bank of Baroda is scheduled to report its financial results for the July-September period (Q2 FY24) on Saturday, November 4. Analysts widely expect the PSU bank to register a decent set of earnings backed by double-digit growth in loans as well as deposits though it may take a mild hit on the margin front. According to Zee Business research, Bank of Baroda is likely to report a standalone net profit of Rs 3,790 crore for the July-September period, which translates into a year-on-year increase of 14.4% . The analysts estimate its quarterly net interest income (NII)—or the difference between interest earned and interest paid—to come in at Rs 10,950 crore, up 7.6% compared with the year-ago period.

For the quarter under review, the bank’s slippages—the loan becoming a non-performing asset on account of the borrower not paying interest for over 90 days—are expected at Rs 5,500 crore, up from Rs 2,761 crore in the previous quarter due to a specific airline account.

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Bank of Baroda Q2 Results: Operating Profit Sees 33% Annual Growth

Bank of Baroda announced its financial results for the quarter ended September 2023 on Saturday, November 4. The private sector lender’s reported an operating profit of Rs 8,020 crore, up 33% from the year-ago period. The lender’s profit after tax came at Rs 4,253 crore, up from Rs 3,313.4 crore in the corresponding period in the previous year. The lender’s net interest income or NII — the difference between the revenue generated expenses occurred during the period — rose 6.5% to Rs 10,831 crore.

This was below the estimated Rs 11,058.8 crore. In the July-September quarter last year, the NII came at Rs 10,174.5 crore. For the quarter under review, the bank’s slippages — loan becoming a non-performing asset (NPA) on account of the borrower not paying interest for over 90 days — came at Rs 4,751 crore, up from Rs 2,761 crore in the previous quarter.

Bank of Baroda Q2 Preview: Profit May Rise Up to 26% Y-o-Y; NIM Outlook Eyed

State-owned lender Bank of Baroda’s (BoB’s) net profit may rise up to 26% year-on-year (Y-o-Y) in the July to September quarter (Q2) of the current financial year (FY24) on the back strong credit growth, analysts believe. However, net interest margins (NIM), they said, may remain under pressure due to increasing cost of funds (CoF) during the quarter. The public sector bank is scheduled to report its Q2FY24 results on Saturday, November 4.

Analysts at Motilal Oswal Financial Services expect earnings and business growth to remain healthy in Q2FY24 with net profit seen rising 21% Y-o-Y to Rs 4,000 crore. This would be driven by 18% Y-o-Y growth in operating profit at Rs 7,120 crore, and 9% increase in net interest income (NII) at Rs 11,120 crore.

Bank of Baroda Q2 Results

Bank of Baroda Falls by Over 2.5% After Lacklustre Q2 Performance

Bank of Baroda’s docile performance in its September-quarter results reflected in its shares’ modest show on Monday morning in the first session post announcement of Q2 numbers as the stock fell by over 2.5%. The company announced its second-quarter results on Saturday, reporting below estimates net interest margin, which was up by 6.4%.

The company’s slippage growth is also high, up by 24.5% to Rs 4,331 crore against Rs 3,479 crore in the same quarter last year. On a quarter-on-quarter basis, the bank’s slippage was higher by 76.6% against Rs 2,452 crore in the first quarter. Bank of Baroda’s gross non-performing assets for the September quarter came about 3.32% as against 3.51% last quarter. The company reported its net non-performing assets at 0.76% compared to 0.78% sequentially.

In conclusion, Bank of Baroda’s Q2 results for the fiscal year 2023-24 have been positive, with the bank’s standalone net profit rising 28.3% to Rs 4,253 crore year-on-year, beating analyst estimates. However, the bank’s net interest margin fell 26 basis points quarter-on-quarter to 3.07%, from the previous 3.27%. The bank’s Q2 results were in line with analysts’ expectations, with the bank’s net profit seen rising 21% Y-o-Y to Rs 4,000 crore. The bank’s slippages were higher by 24.5% to Rs 4,331 crore against Rs 3,479 crore in the same quarter last year.

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