NE BUSINESS BUREAU
MUMBAI, MAY 14
State-owned Bank of Baroda on Friday reported a net profit of Rs 1,779 crore in the quarter ended March 2022. The bank had posted a net loss of Rs 1,047 crore in the same quarter of FY 2020-21, said Sanjay Chada, MD and CEO, BoB..
The total income during January-March period of 2021-22, was down at Rs 20,695.90 crore, as against Rs 21,501.94 crore in the same period of 2020-21,.
The net interest income grew 21.2% to Rs 8,612 crore in the fourth quarter.
The gross non-performing assets (NPAs) of the Bank reduced to Rs 54,059 crore in the January-March period from Rs 66,671 crore a year earlier, while gross NPA ratio improved to 6.61%. The Net NPA Ratio of the Bank improved to 1.72% in Q4FY22 as compared with 3.09% in Q4FY21.
To a query on the possibility of reducing the NPA level below 1 percent. Chada said that they would try their best. He added that they would not be able to furnish which state had contributed more for the NPA hike.
The Fee Income for the reporting period grew 5.8% for the quarter to Rs 1,848 crore. The Cost of Deposits reduced to 3.53% in Q4FY22 as against 3.71% in Q4FY21. The bank reported that its Global NIM increased to 3.08% in Q4FY22 from 2.72% in Q4FY21.
BoB said its board has also approved raising additional capital of up to Rs 2,500 crore by way of additional tier I or tier II debt capital instruments with interchangeability option, issued in India/overseas in suitable tranches up to March 31, 2023.
This will be subject to applicable regulatory/statutory approvals, the bank said.
The board of the bank has recommended a dividend of Rs 1.20 per equity share for the 2021-22 subject to declaration/approval at the ensuing annual general meeting, the bank said.
The Bank’s organic retail advances grew by 17 per cent led by growth in high focus areas such as home loan (11.3 per cent), personal loan (108 per cent), auto loan (19.5 per cent), education loan (16.7 per cent), it said.
It will continue its focus on retail loan growth in the current fiscal year, unlike other banks, which are betting on corporate credit to drive loan growth.
The bank has been adjudged as the best tech bank by the IBA, said Chada.
