Bank of Baroda announces Financial Results for the Quarter and Year ended 31st March 2022
- Bank of Baroda (BOB) Net profit for FY2022 grows 9x to reach INR 7,272 crore
- Net profit in (Q4FY22) stood at INR 1,779 crore
- Advances grew by 8.9% YoY in FY22
- Organic Retail Advances grew by ~17%, led by growth in high focus areas such as Home Loan (11.3%), Personal Loan (108%), Auto Loan (19.5%), Education Loan (16.7%)
- Domestic CASA ratio of the bank improved by 137 bps YoY to 44.24%.
- GNPA at 6.61% a reduction of 226 bps YoY
- NNPA at 1.72% a reduction of 137 bps YoY in FY22.
- Provision coverage ratio (PCR) at 75.28% w/o TWO
- Net Interest Margins improved by 32 bps YoY to 3.03% in FY22.
- NIM for Q4FY22 was 3.08% (an increase of 36 bps compared to Q4FY21)
- Healthy Capital base – CRAR improved to 15.98% in Mar’22 from 14.99% in Mar’21
The Board of Directors have recommended a dividend of INR 1.20 per equity share (60%) for the year ended March 31 2022 (subject to necessary approvals).
Business Performance
- Global Advances of the Bank increased to INR 8,18,120 crore, +8.9% YoY and 6% QoQ as of Mar’22.
- Domestic Advances of the Bank increased to INR 6,84,153 crore, +6.7% YoY and 4.6% QoQ as of Mar’22.
- Global Deposits increased by 8.2% YoY to INR 10,45,939 crore. Domestic Deposits increased by 8.0% YoY to INR 9,27,011 crore in Mar’22.
- Domestic Current Account Deposits stands at INR 68,780 crore, registering a robust growth of 11.6% on a YoY basis.
- Domestic Savings Bank Deposits grew by 11.4% to INR 3,41,343 crore. Overall Domestic CASA registered a growth of 11.4% on a YoY basis.
- Organic Retail loan portfolio of the Bank grew by 16.8% led by growth in Personal loan portfolio by 108.1%, Auto loan by 19.5% and Education loan by 16.7% on a YoY basis.
- Agriculture loan portfolio grew by 10.3% YoY to INR 1,09,796 crore.
- Organic MSME portfolio grew by 5.4% YoY to INR 96,863 crore.
Profitability
- Net Interest Income grew by 21.2% to INR 8,612 crore in Q4FY22 and 13.2% YoY to INR 32,622 crore in FY22.
- Fee Income for the year grew by 12.6% YoY at INR 6,409 crore and 5.8% YoY for the quarter to INR 1,848 crore.
- Operating Income for FY22 registered a growth of 5.7% YoY at INR 44,106 crore.
- Cost of Deposits reduced to 3.53% in Q4FY22 as against 3.71% in Q4FY21.
- Operating Profit for FY22 stands at INR 22,389 crore registering a growth of 5.6% YoY.
- Bank reported a standalone Net Profit of INR 1,779 crore in Q4FY22 as against a loss of INR 1,047 crore in Q4FY21.The Net Profit for FY22 increased to INR 7,272 crore in Mar’22 (777%) from INR 829 crore in FY21.
- Global NIM increased to 3.08% in Q4FY22 from 2.72% in Q4FY21.
- Return on Assets (RoA) improved to 0.60% in FY22 from 0.07% in FY21.
- Return on Equity (RoE) increased sharply by 1016 bps YoY to 11.66%
- For the consolidated entity, Net Profit stood at INR 7,850 crore in FY22 as against INR 1,548 crore in FY21.
Asset Quality
- The Gross NPA of the Bank reduced to INR 54,059 crore in Q4FY22 from the level of INR 66,671 crore in Q4FY21 and Gross NPA Ratio improved to 6.61% in Q4FY22 from 8.87% in Q4FY21.
- The Net NPA Ratio of the Bank improved to 1.72% in Q4FY22 as compared with 3.09% in Q4FY21.
- The Provision Coverage Ratio of the Bank stood at 88.71% including TWO and 75.28% excluding TWO in Q4FY22.
- Slippages for the year was contained at 1.61%.
- Credit cost for the year was at 1.95%, however adjusted for prudential provisioning, pro-forma credit cost was 1.70%.
Capital Adequacy
- CRAR of the Bank improved to 15.98% in Mar’22 from 14.99% in Mar’21. Tier-I stood at 13.49% (CET-1 at 11.74%, AT1 at 1.75%) and Tier-II stood at 2.49% as of Mar’22.
- The CRAR and CET-1 of consolidated entity stands at 16.47% and 12.34% respectively
Business position
|
Particulars (INR crore)
|
Mar 31, 2021
|
Dec 31, 2021
|
Mar 31, 2022
|
YoY (%)
|
|
Domestic deposits
|
8,58,413
|
8,76,555
|
9,27,011
|
8.0
|
|
Domestic CASA
|
3,68,027
|
3,88,169
|
4,10,123
|
11.4
|
|
Global deposits
|
9,66,996
|
9,78,034
|
10,45,939
|
8.2
|
|
Domestic advances
|
6,41,076
|
6,54,315
|
6,84,153
|
6.7
|
|
Of which, retail loan
portfolio (Organic)
|
1,20,256
|
1,28,960
|
1,40,399
|
16.8
|
|
Global advances
|
7,51,590
|
7,71,994
|
8,18,120
|
8.9
|
|
NIM Global %
|
2.72
|
3.13
|
3.08
|
|
Financial results for year ended 31st March 2022
|
Particulars (INR crore)
|
FY21
|
FY22
|
YoY (%)
|
|
Interest
Income
|
70,495
|
69,889
|
-0.9
|
|
Interest
Expenses
|
41,686
|
37,259
|
-10.6
|
|
Fee
Income
|
5,693
|
6,409
|
12.6
|
|
Net
Interest Income (NII)
|
28,809
|
32,622
|
13.2
|
|
Operating
Income
|
41,743
|
44,106
|
5.7
|
|
Operating
Expenses
|
20,544
|
21,716
|
5.7
|
|
Operating
Profit
|
21,199
|
22,389
|
5.6*
|
|
Total
Provisions (other than tax) and contingencies
|
15,643
|
13,002
|
-16.9
|
|
of
which, Provision for NPA Bad Debts Written-off
|
12,408
|
14,640
|
18.0
|
|
Profit
before Tax
|
5,556
|
9,387
|
69.0
|
|
Provision
for Tax
|
4,727
|
2,114
|
-55.3
|
|
Net
Profit
|
829
|
7,272
|
777.2
|
*Growth in operating profit for FY’22 excluding revaluation of investment would have been 13.1%.
Financial result for Quarter ended 31st March 2022
|
Particulars
(INR crore)
|
Q4FY21
|
Q3FY22
|
Q4FY22
|
YoY(%)
|
|
Interest Income
|
16,685
|
17,963
|
18,174
|
8.9
|
|
Interest Expenses
|
9,578
|
9,411
|
9,562
|
-0.2
|
|
Fee Income
|
1,747
|
1,557
|
1,848
|
5.8
|
|
Net Interest Income (NII)
|
7,107
|
8,552
|
8,612
|
21.2
|
|
Operating Income
|
11,924
|
11,071
|
11,134
|
-6.6
|
|
Operating Expenses
|
5,689
|
5,588
|
5,499
|
-3.3
|
|
Operating Profit
|
6,235
|
5,483
|
5,635
|
-9.6
|
|
Total Provisions (other
than tax) and contingencies
|
3,555
|
2,506
|
3,736
|
5.1
|
|
of which, Provision for
NPA Bad Debts Written-off
|
4,593
|
4,283
|
5,200
|
13.2
|
|
of which, Provision for
NPA Bad Debts Written-off
|
4,593
|
4,283
|
5,200
|
13.2
|
|
Profit before Tax
|
2,680
|
2,976
|
1,899
|
-29.1
|
|
Provision for Tax
|
3,726
|
779
|
120
|
-96.8
|
|
Net Profit
|
-1,047
|
2,197
|
1,779
|
|
Key Ratios
|
Particulars
|
Mar 31, 2021
|
Dec 31, 2021
|
Mar 31, 2022
|
|
CRAR (%)
|
14.99
|
15.47
|
15.98
|
|
Tier-1 (%)
|
12.67
|
13.24
|
13.49
|
|
CET-1 (%)
|
10.94
|
11.30
|
11.74
|
|
Gross NPA (%)
|
8.87
|
7.25
|
6.61
|
|
Net NPA (%)
|
3.09
|
2.25
|
1.72
|
|
PCR (with TWO) (%)
|
81.80
|
85.95
|
88.71
|