Bank of Baroda announces Financial Results for the Quarter & Financial Year ended 31st March 2023 

Key Highlights 

• Bank of Baroda (BOB) reported a ~2x growth in profits for FY23 and declared it’s highest ever quarterly and annual net profit of INR 4,775 crore (+168% YoY) and INR 14,110 crore (+94% YoY) respectively. 
• As a result of this significant improvement in profitability the Bank’s Return on Assets (RoA) for FY23 improved by 43 bps YoY to 1.03% (FY23) ; RoA for Q4FY23 improves by 77 bps YoY to 1.34% 
• Similarly, Bank’s Return on Equity (RoE) for FY23 increases by 648 bps YoY to 18.34%; RoE for Q4FY23 stands 24.82%, up by 1321 bps YoY  
• This robust growth in profitability was supported by healthy Net Interest Income (NII) growth of 33.8% & 26.8% for Q4FY23 & FY23 respectively.  
• Sustained NII growth is attributable to growth in advances of 18.5% (YoY) coupled with traction in Net Interest Margins (NIM), which grew 16 bps QoQ / 45 bps YoY to end the quarter at 3.53% and 28 bps YoY for the full year FY23.  
• Strong growth in Income coupled with subdued increase in Opex has resulted in robust Operating profit growth of 43.3% YoY for Q4FY23 and 20% YoY for the financial year 2023.  
• The Bank has been able to effect a reduction in the Cost to Income ratio by 152 bps and reported a Cost to Income ratio of 47.72% for FY23.  
• BOB has witnessed significant improvement in its Asset quality with sharp reduction in GNPA by 282 bps YoY & 74 bps QoQ to 3.79%. Bank’s NNPA improved to 0.89% with a reduction of 83 bps YoY and 10 bps QoQ.  
• BOB’s Provision Coverage Ratio (PCR) remained healthy at 92.43% with TWO & at 77.19% without TWO.  
• This strong and sustainable improvement in asset quality has resulted in record low Credit Cost for the Bank at 0.14% for Q4FY23 & 0.53% for FY23.  
• BOB’s Global Advances registered a strong YoY growth of 18.5% in Q4FY23 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 26.8%, driven by growth in high focus areas such as Auto Loan (24.4%), Home Loan (19.5%), Personal Loan (101.5%), Mortgage Loan (18.0%), Education Loan (21.8%).  
• Bank achieved a total business of INR 21,73,236 crore as of 31^st March 2023, registering a growth of 16.6% YoY.  
• The Board of the Bank has recommended to declare a dividend of INR 5.5 per share, subject to requisite approval 

Profitability 

• BOB reported a standalone Net Profit of INR 4,775 crore in Q4FY23 as against a profit of INR 1,779 crore in Q4FY22. It grew by 94% YoY and stands at INR 14,110 crore for FY23. 
• Net Interest Income (NII) grew by 33.8% YoY to INR 11,525 crore in Q4FY23. NII registered a growth of 26.8% YoY for FY23 and stands at INR 41,355 crore.   
• Global NIM stands at 3.53% in Q4FY23, increase of 45 bps YoY. NIM for FY23 stands at 3.31% against 3.03% for FY22. 
• Domestic NIM stands at 3.65% in Q4FY23, increase of 51 bps YoY. NIM for FY23 stands at 3.42% against 3.09% for FY22. 
• Yield on Advances increased to 8.47% in Q4FY23 as against 6.81% in Q4FY22.   
• Cost of Deposits stands at 4.43% in Q4FY23 as against 3.53% in Q4FY22. 
• Operating Income for Q4FY23 stands at INR 14,991 crore, increase of 34.6% YoY. It registered a growth of 16.5% YoY for FY23 and stands at INR 51,381 crore. 
• Operating Profit for Q4FY23 stands at INR 8,073 crore, increase of 43.3% on a YoY basis. Operating Profit for FY23 stands at INR 26,864 crore up by 20% YoY. 
• Cost to Income ratio reduced to 46.15% for Q4FY23 as against 49.39% for Q4FY22. It declined by 152 bps YoY and stands at 47.72% for FY23. 
• Return on Assets (annualised) improved to 1.34% in Q4FY23 from 0.57% in Q4FY22. Return on Assets for FY23 stands at 1.03% up by 43 bps YoY. 
• Return on Equity (annualised) for FY23 increased by 648 bps YoY to 18.34%. 
• For the consolidated entity, Net Profit stood at INR 14,905 crore in FY23 as against INR 7,850 crore in FY22. 

Asset Quality 

• The Gross NPA of the Bank reduced by 32% YoY to INR 36,764 crore in Q4FY23 and Gross NPA Ratio improved to 3.79% in Q4FY23 from 6.61% in Q4FY22. 
• The Net NPA Ratio of the Bank stands at a record low of 0.89% in Q4FY23 as compared with 1.72% in Q4FY22. 
• The Provision Coverage Ratio of the Bank stood at 92.43% including TWO and 77.19% excluding TWO in Q4FY23. 
• Slippage ratio declined to 1.02% for Q4FY23 as against 2.52% in Q4FY22. Slippage ratio for FY23 reduced by 54 bps and stands at 1.07%. 
• Credit cost for the Q4FY23 stands at 0.14% and 0.53% for the full year. 

Capital Adequacy 

• CRAR of the Bank stands at 16.24% in Mar’23. Tier-I stood at 13.99% (CET-1 at 12.24%, AT1 at 1.75%) and Tier-II stood at 2.25% as of Mar’23.  
• The CRAR and CET-1 of consolidated entity stands at 16.73% and 12.83% respectively 
• The Liquidity Coverage Ratio (LCR) consolidated stands at 135.4%. 

Business Performance 

• Global Advances of the Bank increased to INR 9,69,548 crore, +18.5% YoY. 
• Domestic Advances of the Bank increased to INR 7,95,560 crore, +16.3% YoY.  
• International advances grew by 6.3% sequentially in Q4FY23 stands at INR 1,73,988 crore. 

• Global Deposits increased by 15.1% YoY to INR 12,03,688 crore.  
• Domestic Deposits increased by 13% YoY to INR 10,47,375 crore in Mar’23. 
• International Deposits grew by 31.4% on a YoY basis to INR 1,56,313 crore in Mar’23.  
• Domestic CASA deposits registered a growth of 7.9% YoY and stands at INR 4,42,511 crore. 
• Domestic Saving deposits grew by 7.6% on a YoY basis in Mar’23 and Domestic Current deposits registered a growth of 9.2% YoY. 
• Organic Retail Advances grew by 26.8%, led by growth in high focus areas such as Auto Loan (24.4%), Home Loan (19.5%), Personal Loan (101.5%), Mortgage Loan (18%), Education Loan (21.8%) on a YoY basis. 
• Agriculture loan portfolio grew by 13.2% YoY to INR 1,24,247 crore. 
• Total Gold loan portfolio (including retail and agri.) stands at INR 38,251 crore, registering a growth of 30.5% on a YoY basis. 
• Organic MSME portfolio grew by 11.7% YoY to INR 1,08,196 crore.  

Financial result for Quarter ended 31^st March 2023 

Business position 

Key Ratios