Bank of Baroda Ltd. (NSE: BANKBARODA): Q3 FY23 Results Out; Total Income rises 37% YoY

Bank of Baroda (NSE:BANKBARODA) is one of the largest public sector banks in India, with a history dating back to 1908. The bank operates through a vast network of branches across the country and offers a wide range of banking services to individuals, businesses, and corporations. Some of its key offerings include savings accounts, current accounts, fixed deposits, personal loans, home loans, and more.

In recent years, Bank of Baroda has focused on modernizing its technology and digital offerings to better serve its customers. This has included the launch of various mobile and online banking services, as well as the introduction of new products and services such as credit cards, wealth management, and insurance. Bank of Baroda has managed to maintain its strong financial position, with a robust capital adequacy ratio and a conservative asset quality management approach. The bank is committed to providing its customers with high-quality services, and continues to focus on innovation and growth as it strives to remain at the forefront of the Indian banking industry.

Bank of Baroda reported a strong financial performance in Q3FY23, with a total business of Rs 20,73,385 crore, registering a growth of 18.5% YoY. The bank declared its highest-ever quarterly net profit of Rs 3,853 crore, a significant increase of 75.4% YoY. BOB’s net profit for 9MFY23 stood at Rs 9,334 crore, reflecting a strong YoY growth of 69.9%. The bank’s net interest income (NII) also saw a significant growth of 26.5% in Q3FY23 and 24.2% for 9MFY23. The operating profit also grew by 50.1% YoY in Q3FY23, reaching Rs 8,232 crore.

The credit cost was at a record low of 0.37% for Q3FY23 and 0.66% for 9MFY23. BOB’s global advances showed strong YoY growth of 19.7% in Q3FY23, with organic retail advances growing by 29.4%, driven by growth in areas such as auto loans, home loans, personal loans, mortgage loans, and education loans. The Gross Non-Performing Assets (GNPA) stood at 4.53%, a reduction of 272 bps YoY and 78 bps QoQ, and the Net Non-Performing Assets (NNPA) was 0.99%, a reduction of 126 bps YoY and 17 bps QoQ.

The Provision Coverage Ratio (PCR) was at a high of 92.34% with TWO and 78.85% without TWO. BOB’s net interest margins (NIM) for Q3FY23 and 9MFY23 were 3.37% and 3.23% respectively, an increase of 24 bps YoY for the quarter and 22 bps for 9M. The return on assets (RoA) for 9MFY23 improved by 31 bps YoY to 0.93%, and RoA for Q3FY23 improved by 39 bps YoY to 1.13%. The return on equity (RoE) for 9MFY23 increased by 504 bps YoY to 17.02%, and RoE for Q3FY23 increased by 671 bps YoY to 21.08%. The Liquidity Coverage Ratio (LCR) stood at 143.78% in Q3FY23.

Overall, Bank of Baroda’s financial results reflect a strong performance and the bank is now India’s second-largest public sector bank as per total business.