Performance Analysis of Bank of Baroda Q1FY24 RESULT

Bank of Baroda Q1FY24 RESULT: Bank of Baroda (BoB) released its performance report for Q1FY24 indicating tremendous growth and sound financial stability. This blog post will focus on the important highlights, financial performance as well as strategic initiatives undertaken by BoB. The analysis will be complemented with tables and graphs for clearer understanding about the bank’s achievements and way forward.

Key Highlights of Bank of Baroda Q1FY24 RESULT

Financial Performance Overview

• Net Profit: BoB’s net profit increased significantly year on year, from INR 2,168 crore in Q1FY23 to INR 4,070 crore in Q1FY24, representing an 87.7% jump.
• Net Interest Income (NII): NII  increased by 24.4% YoY, to INR 10,997 crore in Q1FY24 from INR 8,838 crore in Q1FY23.
• Operating Profit: The operating profit increased by 72.8% year on year, from INR 4,528 crore in Q1 FY23 to INR 7,824 crore in Q1 FY24.
• Return on Assets (RoA): ROA increased by 43 basis points YoY, reaching 1.11% in Q1FY24.
• Return on Equity (RoE): ROE grew by 640 basis points year on year to 20.03% in Q1 FY24.

Financial Performance of Bank of Baroda Q1FY24 RESULT

Income and Profitability

BoB’s financial performance in Q1FY24 demonstrates considerable growth across all revenue streams and profitability indicators.

Table 1: Income and Profitability (INR crore)

Particulars	Q1FY23	Q1FY24	YoY (%)
Net Interest Income	8,838	10,997	24.4
Fee Based Income	1,277	1,507	18.0
Operating Profit	4,528	7,824	72.8
Profit Before Tax	2,843	5,878	106.7
Net Profit	2,168	4,070	87.7

Deposits and Advances

BoB’s deposits and advances showed robust growth, with significant increases in both domestic and international segments.

Table 2: Deposits and Advances (INR crore)

Particulars	Jun 30, 2022	Jun 30, 2023	YoY (%)
Domestic Deposits	9,09,095	10,50,306	15.5
International Deposits	1,23,619	1,49,602	21.0
Global Deposits	10,32,714	11,99,908	16.2
Retail Advances	1,47,535	1,84,091	24.8
Domestic Gross Advances	6,95,493	8,12,626	16.8
International Advances	1,44,293	1,78,362	23.6
Global Advances	8,39,785	9,90,988	18.0
Total Business	18,72,499	21,90,896	17.0

Key Ratios of Bank of Baroda Q1FY24 RESULT

BoB’s key financial ratios reflect its improved operational efficiency and profitability.

Table 3: Key Ratios

Ratio	Q1FY23	Q1FY24	Change (bps)
GNPA Ratio (%)	6.26	3.51	(275)
NNPA Ratio (%)	1.58	0.78	(80)
Net Interest Margin (%)	3.02	3.27	25
Return on Assets (%)	0.68	1.11	43
Return on Equity (%)	13.63	20.03	640

Operating Performance of Bank of Baroda Q1FY24 RESULT

The operating performance showcases the bank’s ability to generate revenue from its core banking operations while managing costs effectively.

Table 4: Operating Performance (INR crore)

Particulars	Q1FY23	Q4FY23	Q1FY24	YoY (%)
Interest on Advances	13,038	19,095	19,813	52.0
Interest on Investments	4,940	6,057	6,028	22.0
Total Interest Income	18,937	25,857	26,556	40.2
Total Interest Expenses	10,099	14,332	15,559	54.1
Net Interest Income	8,838	11,525	10,997	24.4
Operating Income	10,020	14,991	14,319	42.9
Operating Expenses	5,492	6,918	6,495	18.3
Operating Profit	4,528	8,073	7,824	72.8

Asset Quality

BoB has shown significant improvement in asset quality with a notable reduction in NPAs.

Table 5: Movement of NPAs (INR crore)

Particulars	Q1FY23	Q4FY23	Q1FY24
Opening Balance	54,059	41,858	36,764
Additions	4,352	2,744	2,761
Reductions	5,820	7,838	4,693
Closing Balance (GNPA)	52,591	36,764	34,832
Net NPA	12,653	8,384	7,482

Graph 4: Gross and Net NPAs

Bank of Baroda Q1FY24 RESULT: Conclusion

Bank of Baroda’s Q1FY24 performance is reflected in its solid financial health, evidenced by huge profits growth, better asset quality and strong operational parameters. Also, the strategic initiatives which the bank is taking towards digital transformation, sustainability and promoting employee engagement are likely to foster further growth and increase stakeholder value. For more details please refer the link.

FAQs

1. What is the year-on-year growth in BoB’s net profit for Q1 FY 24?

BoB’s net profit increased by 87.7% YoY, to INR 4,070 crore in Q1FY24 from INR 2,168 crore in Q1FY23.

2. How has BoB’s asset quality improved during Q1FY24?

BoB’s GNPA ratio improved by 275 basis points year on year, dropping to 3.51% in Q1FY24 from 6.26% in Q1FY23. Similarly, the NNPA ratio fell 80 basis points YoY to 0.78% in Q1FY24.

3. What were the primary drivers of BoB’s financial performance in Q1 FY24?

Significant growth in net interest income, higher operating profit, and a major reduction of non-performing loans are among the key reasons.

4. How has BoB fared in terms of deposits and advances?

BoB’s global deposits climbed by 16.2% YoY, while global advances increased by 18.0% YoY in Q1FY24. Both domestic and overseas segments had strong growth.

5. What strategic efforts has BoB implemented to help boost growth?

To generate growth and improve operational efficiency, BoB has prioritised digital transformation, sustainability initiatives, and increased employee involvement.

Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.