Bank of Baroda Q4 Earnings: Net Profit of Rs 4,886.49 crore, NII Grows 2.3%

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by Sandip Das on 13 May 2024,  3 min read

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Bank of Baroda, a government-owned bank, announced its standalone net profit for the fourth quarter of FY24 on May 10, 2024. The bank reported a net profit of Rs 4,886.49 crore, marking a 2.3 percent increase from Rs 4,775.33 crore in the same period last year.

In addition to the rise in net profit, Bank of Baroda also saw a 2.3 percent growth in its net interest income (NII) for Q4FY24, which increased to Rs 11,793 crore from Rs 11,525 crore YoY. Moreover, the Global Net Interest Margin (NIM) experienced an improvement, rising by 17 basis points (bps) sequentially to 3.27 percent in Q4FY24 from 3.1 percent in Q3FY24.

The bank’s asset quality showed signs of improvement as well. Gross non-performing assets (GNPA) in Q4FY24 decreased by 1.5 percent to Rs 31,833.63 crore compared to Rs 32,317.56 crore in Q3FY24. However, there was a marginal increase of 0.1 percent in Net NPA, rising to Rs 7,213.34 crore from Rs 7,208.31 crore QoQ.

Gross NPA as a percentage of gross advances dropped by 16 basis points (bps) to 2.92 percent from 3.08 percent, while net NPA as a percentage of net advances declined by 2 bps to 0.68 percent from 0.7 percent sequentially.

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Furthermore, Bank of Baroda recommended a dividend of Rs 7.60 per equity share with a face value of Rs 2 each, fully paid up for FY 2023-24.

Prior to this announcement, the Reserve Bank of India (RBI) lifted the restrictions imposed on Bank of Baroda (BoB) in October of the previous year. These restrictions had prohibited the public sector lender from onboarding customers to its mobile banking app, bob World.

In a regulatory filing, Bank of Baroda stated that the RBI, through its letter dated May 8, 2024, informed the bank of its decision to lift the aforementioned restrictions on bob World with immediate effect. Consequently, the bank is now permitted to onboard customers through the bob World application in accordance with the applicable guidelines and extant laws and regulations.

As a result of this development, Bank of Baroda will resume the onboarding of new customers to the bob World application while ensuring strict adherence and compliance with regulatory guidelines.

Bank of Baroda stock price was trading at Rs 255.10 per share on NSE, down Rs 7.55 or 2.87 percent.

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