The Business Bytes
Mumbai, May 10, 2024 (TBB Bureau): In a resounding testament to its financial prowess, Bank of Baroda (BoB) on Friday unveiled its financial report for FY2023-24 (FY24), showcasing a remarkable 26.1 per cent surge in net profit to an impressive Rs 17,789 crore. The bank’s fourth-quarter standalone net profit stood at Rs 4,886 crore, a testament to its resilience amidst challenging economic conditions. This surge in profitability was propelled by robust revenue growth, with Net Interest Income (NII) witnessing a steady 8.1 per cent increase, reached Rs 44,722 crore for FY24. Non-Interest Income surged by an astounding 44.6 per cent to Rs 14,495 crore, underlining the bank’s diversified revenue streams and adept financial strategies.
BoB’s financial resilience was further underscored by improved margins, with the Global Net Interest Margin (NIM) standing at 3.18 per cent. Despite a slight uptick in the cost of deposits, BOB maintained a healthy operating income of Rs 59,217 crore, marking a commendable 15.3 per cent growth.
The bank’s relentless focus on enhancing asset quality yielded significant results, with Gross Non-Performing Assets (NPAs) witnessing a notable decline of 13.4 per cent to Rs 31,834 crore, and the Gross NPA Ratio improving to 2.92 per cent. The Provision Coverage Ratio remained robust at 93.30 per cent, indicating proactive risk management practices.
BoB’s capital adequacy remained strong, with the Capital to Risk-Weighted Assets Ratio (CRAR) at 16.31 per cent, bolstered by Tier-I capital at 14.07 per cent. The Liquidity Coverage Ratio (LCR) consolidated stood at a comfortable 120.6 per cent, ensuring the bank’s resilience amidst market uncertainties. Furthermore, BoB’s business expansion efforts yielded promising results, with global advances surging to Rs 10,90,506 crore. Domestic deposits witnessed a healthy growth of 7.7 per cent, with Domestic Current Account and Savings Account (CASA) deposits growing by 5.4 per cent.
BoB’s commitment to inclusive growth was evident in its robust performance across retail advances, agriculture loans, and MSME portfolios. The bank’s proactive stance towards customer needs, coupled with prudent risk management, positioned it as a beacon of stability amidst market uncertainties.
With its unwavering commitment to excellence and customer-centric approach, BoB continued to chart new horizons, poised for even greater achievements in the years to come.
