Bank of Baroda(BoB) Q3 results: Net profit jumps 19%

 


Bank of Baroda on Wednesday, January 31, reported an 18.8% rise in net profit reaching ₹4,579 crore in the third quarter of the 2023-24 fiscal as compared to ₹3,852.7 crore last year. The lender's net interest income (NII) stood at ₹11,101 crore, slightly surpassing the CNBC-TV18 poll estimate of ₹11,085 crore.


This represents a year-on-year (YoY) increase of 2.6%, rising from ₹10,818.3 crore.


The bank displayed some improvement in asset quality, with Gross NPA (Non-Performing Assets) at 3.08% as opposed to 3.32% in the previous quarter.


Net NPA also witnessed a decline, standing at 0.70%, down from 0.76% in the previous quarter.

Gross NPA amounted to ₹32,317 crore, a decrease from ₹33,978.5 crore in the previous quarter. Net NPA reduced to ₹7,208.3 crore from ₹7,596.7 crore in the last quarter.


The bank made provisions of ₹666.3 crore, significantly lower than the ₹2,404 crore reported YoY and ₹2,160.6 crore in the previous quarter.


The Cost to Income ratio demonstrated a reduction by 123 basis points (bps) YoY, reaching 47.13% for the nine months ending December 2023 (9MFY24).


The Global Net Interest Margin (NIM) of the lender improved by 3 basis points sequentially, standing at 3.10% in Q3FY24, compared to 3.07% in Q2FY24.


The Net Interest Margin for 9MFY24 is reported at 3.14%.


The credit cost remained below 1%, reporting 0.69% for 9MFY24 and 0.39% for the quarter.


The bank maintained a healthy liquidity coverage ratio at 133% as of December 31, 2023.


Bank of Baroda's global advances registered growth of 13.6% YoY in Q3FY24, driven by robust retail loan book growth.
The bank's organic retail advances grew by 22%, propelled by growth in high-focus areas such as Auto Loan (24.3%), Home Loan (15.6%), Personal Loan (60.8%), Mortgage Loan (10.5%), and Education Loan (18.3%).


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Bank of Baroda(BoB) Q2 profit rises 28% YoY

 


Bank of Baroda on Saturday reported a 28.4% year-on-year (YoY) rise in net profit for the quarter ended September 2023 to Rs 4,253 crore. Total income from operations increased by 39% on year to Rs 32,033 crore.


Net interest income (NII), the difference between interest earned and interest expended, grew by 6.5% YoY to Rs 10,831 crore.


The non-interest income grew more than two-fold on year to Rs 4,171 crore during the quarter.


Provisions and contingencies for the quarter increased to Rs 2,161 crore from Rs 1,627 crore a year ago.


The gross non-performing assets ratio as of September end stood at 3.32%, compared to 5.31% a year ago and 3.51% a quarter ago. The net non-performing assets ratio as of September end stood at 0.76%, compared to 1.16% a year ago and 0.78% a quarter ago.


The capital adequacy ratio under Basel-III norms was 15.30% as of September end, compared to 15.25% a year ago.


The global net interest margin (NIM) for the quarter stood at 3.07%, the state-owned lender said in a release.


Operating profit for the quarter increased by 33% on year to Rs 8,020 crore. The cost-to-income ratio reduced to 46.54% from 49.74% a year ago.


The bank’s balance sheet remained robust, with a provision coverage ratio of 93.16%. The credit cost remained below 1% at 0.92% during the quarter.


The global advances saw a strong 17% YoY growth during the quarter, led by robust retail loan book growth. Organic retail advances grew by 22%, led by higher focus on auto loan, home loan, personal loan, mortgage loan, and education loan.


The lender achieved a total business of Rs 22.74 lakh crore, registering a growth of 16% YoY.

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Bank of Baroda(BoB) App Scam: Has Sent Shockwaves To Indian Banking System - All You Need To Know


Bank of Baroda has been in the eye of a storm after a potential fraud in the process of signing up customers for its Internet banking app. The employees at certain Bank of Baroda branches allegedly linked customers' bank accounts with unrelated mobile numbers and enrolled them on the "Bob World" app, Al Jazeera reported in July. 


What exactly happened?

This mobile app, similar to other banking apps, offers customers various digital banking services, including loan access, savings, investment options, bill payments, and even booking buses and hotels. According to the report, bank employees resorted to linking bank accounts without associated mobile numbers to the contact details of various personnel, including staff, sanitation workers, and security personnel to meet demanding sign-up targets for the digital app.


After the initial registration, these employees would then deregister the bank accounts from the app and reuse the same mobile numbers to link a different set of bank accounts. To oversee this process, each branch had a designated nodal officer, as reported by the publication. While Bank of Baroda initially denied these allegations, it later initiated an internal audit in response to the accusations.


But How Did It All Begin? 

The first sign of illegal on boarding in Bank of Baroda's BOB World App was exposed by AI Jazeera in July 2023.


As per the Al Jazeera report, it was known that the bank's employees were given the task of onboarding customers on the BOB World mobile app when it was launched in September 2021. The task was extensive, and employees struggled to onboard people while they feared getting poor performance reviews from their regional offices. Desperate to succeed in the task at hand, a Bank of Baroda employee situated in Bhopal revealed to AI Jazeera that he and his colleagues learned of a workaround from peers in other branches. This employee revealed that they would fetch out the list of bank accounts which were not linked with mobile numbers, and then the employees would link these accounts to any mobile numbers they could gather such as bank staffers, sanitation and security workers and their relatives. The goal of doing so was to generate the one-time password (OTP) which is required to join the application and sign up these accounts. The next step by these employees was to deregister these customers from the app and reuse the same mobile numbers to repeat the process all over again.


Even a nodal officer reportedly from the regional office in Bhopal joined the practice by giving his and his wife's phone numbers to link with the accounts. AI Jazeera cited an email which pointed out the scale of impact on bank accounts. For instance, in the Bhopal zone, the news channel found out that close to 1,300 mobile numbers were tied to anywhere from 30 to 100 bank accounts, putting nearly 62,000 bank accounts at risk. This will be on average 47 bank accounts linked to a single mobile number. As per the policy of Bank of Baroda policy, one mobile number can be linked to at least eight bank accounts, however, one mobile number cannot be linked to multiple mobile banking apps. Bank of Baroda had denied the findings in the AI Jazeera report. But when RBI stepped into the same matter, Bank of Baroda carried out its investigation, finding many employees carrying this fraudulent act.


What did the RBI say?

Now, the bank app has been banned by the RBI from onboarding new customers. The RBI has now mandated that the Bank of Baroda, the seventh largest in India by market cap, sign in new customers to the BoB World app after it rectifies the identified issues and strengthens the relevant processes to the regulator's satisfaction, as per ET.


Bank of Baroda takes action:

In response to this, the Bank of Baroda has taken action by suspending certain employees and launching an investigation to establish accountability. “Some employees have been suspended in Bhopal, Baroda and Rajasthan and a probe has been initiated. So far the suspensions are only in the smaller towns outside the metros,” a person familiar with the process told ET.

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How Bank of Baroda(BoB) customers can scan UPI QR code and pay via digital rupee


Bank of Baroda (BoB) today announced that it has enabled CBDC UPI QR Interoperability functionality for pilot users on the Bank of Baroda Digital Rupee app.


The launch of this feature will pave the way for seamless transactions between a customer and a merchant. For customers, it provides ease and convenience to use the Bank of Baroda Digital Rupee app to scan any UPI QR at a merchant outlet and transact. Merchants can now accept digital rupee [CBDC-R] payments from customers using their existing QR payment acceptance terminal, without being onboarded as a CBDC merchant.


At the launch, Joydeep Dutta Roy, Executive Director, Bank of Baroda said, “CBDC UPI QR interoperability will further accelerate the adoption of digital rupee [CBDC-R] among customers and provide wider payment acceptance infrastructure to promote usage of digital rupee at merchant outlets. Customers can now use their digital currency available in their digital rupee [CBDC-R] wallet and scan to pay across any UPI QR code. Similarly, merchants need to only display their existing single QR code, which can accept payments in both CBDC and UPI. With this, we believe that the digital rupee ecosystem can scale up quickly."


CBDC UPI QR interoperability functionality on the Bank of Baroda Digital Rupee app is being rolled out to pilot users across 26 cities (i.e. Delhi, Mumbai, Bhubaneswar, Chandigarh, Ahmedabad, Bengaluru, Hyderabad, Guwahati, Gangtok, Indore, Bhopal, Pune, Lucknow, Patna, Kochi, Shimla, Goa, Jaipur, Kolkata, Chennai, Ranchi, Nagpur, Visakhapatnam, Varanasi, Pondicherry, and Vijayawada) in a phased manner starting with Android, and will be available to iOS users shortly.


What is Digital Rupee?

The Digital Rupee is legal tender issued by the Reserve Bank of India (RBI) in Digital form. 


What is CBDC UPI QR interoperability?

The CBDC UPI QR interoperability is an extension to the CBDC-Retail pilot launched by the RBI last year.


Customers of these five banks can scan the UPI QR code and pay via digital rupee

Kotak Mahindra Bank 

Yes Bank 

Axis Bank 

HDFC Bank 

Canara Bank 


Bank of Baroda is one of the leading commercial banks in India. At 63.97% stake, it is majorly owned by the Government of India.


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This PSB is going to auction actor Sunny Deol's Juhu property to recover loan






Public sector lender Bank of Baroda (BoB) has issued a notice to Bollywood actor Sunny Deol for auctioning his villa in Mumbai’s Juhu citing non-payment of dues amounting to nearly Rs 56 crore.


In a notice published in a national newspaper on August 19, 2023, BoB said the villa will be e-auctioned on September 25 due to non-payment. As per the notice, Deol, whose real name is Ajay Singh Deol, is the borrower and guarantor of the loan and has allegedly failed to pay the amount to the bank on time.


According to the rules, a loan becomes a non-performing asset (NPA) if there is no repayment of interest and principal for a period of 90 days. Banks need to set aside money to cover likely losses from such loans and they typically auction such properties to recover the amount.


"The loan was taken for the purpose of film financing in 2016, and it is an NPA since last year December 2022," said a person familiar with the matter speaking on condition of anonymity.


An email sent to BoB for official response did not elicit any response till the time of filing this copy. Moneycontrol couldn’t immediately reach out to Deols for a comment.

The development comes in the backdrop of a recent mega release of Deol’s movie. ”Gadar 2”, starring him and Ameesha Patel, which has crossed Rs 300 crore mark at the domestic box office on August 19.


Directed by Anil Sharma, the film is a sequel to the 2001 blockbuster ”Gadar: Ek Prem Katha”. The movie, a Zee Studios production, released in theatres on August 11. In a press note, the makers claimed the film has ”soared to a remarkable all-time high for any Hindi film”, especially in territories like Punjab.


In response to a query, Sunny Deol's representative said "We are in process of resolving this issue and the issue will be resolved. We request for no further speculation on the same."

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Bank of Baroda(BoB) Q1 Net profit jumps 88%


Public sector lender Bank of Baroda on August 5 reported 87.7 percent rise in net profit to Rs 4,070 crore for the April-June FY24 quarter from Rs 2,168 crore last year.


Bank of Baroda’s net profit was seen rising 86.5 percent YoY to Rs 4044.3 crore. The lender exceeded market expectations.


The gross non-performing assets of the bank declined to 3.51 percent as compared with 6.26 percent last year.


The Gross NPA of the Bank reduced by 33.8 percent YoY to Rs 34,832 crore in Q1FY24 and Gross NPA Ratio improved to 3.51 percent in Q1FY24 from 6.26 percent in Q1FY23.


The Net NPA Ratio of the BOB stands at a record low of 0.78 percent in Q1FY24 as compared with 1.58 percent in Q1FY23.


However, Slippage ratio declined to 1.05 percent for Q1FY24 as against 1.71 percent in Q1FY23.


Domestic CASA deposits registered a growth of 5.5 percent YoY and stood at Rs 4,23,600 crore. Auto Loan increases by 22.1 percent, Home Loan 18.4 percent, Personal Loans by 82.9 percent, Mortgage Loan 15.8 percent and Education Loan 20.8 percent on a YoY basis.


However, the Agriculture loan portfolio grew by 15.1 percent YoY to Rs 1,27,583 crore and the total Gold loan portfolio including retail and agri. stands at Rs 40,652 crore, registering a growth of 32.1 percent on a YoY basis.


Bank of Baroda has domestic presence spanning 8,205 branches and 10,459 ATMs and Cash Recyclers supported by self-service channels and an international presence with a network of 93 overseas offices spanning 17 countries.


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Bank of Baroda(BoB) Q4 Results: Profit zooms 168% YoY

State-run Bank of Baroda on Tuesday reported a standalone net profit of Rs 4,775 crore, up 168% year-on-year (YoY) for the fourth quarter ended March 2023. In the same quarter of last year, it posted a net profit of Rs 1,779 crore.


Its net interest income (NII) for the quarter grew 33.8% at Rs 11,525 crore. Meanwhile, NII registered a growth of 26.8% YoY for FY23 to Rs 41,3


55 crore.


Global NIM stood at 3.53% in Q4FY23, an increase of 45 bps YoY. NIM for FY23 stood at 3.31 % against 3.03% for FY22. Domestic NIM stood at 3.65% in Q4FY23, a rise of 51 bps YoY. NIM for FY23 stood at 3.42% as compared 3.09% for FY22.



The bank reported a strong quarter on the asset quality front with both gross non-performing assets (NPAs) and net NPAs on the downward trend. The gross NPA of the bank fell to 3.79% in the January-March period, compared with 6.61% in the year-ago quarter.


Meanwhile, net NPAs too were at a record low of 0.89% in Q4 FY23 as against 1.72% in Q4 FY22.


"The Bank has recommended a dividend at Rs 5.50 per equity share (Face Value Rs.2/- each fully paid up) for the FY2022-23 subject to declaration/approval at the ensuing 27th Annual General Meeting," Bank of Baroda said in an exchange filing.


The Board of Directors of Bank of Baroda have fixed July 1, 2023 to July 7, 2023 (both days inclusive) as Book Closure dates for the purpose of 27th AGM and dividend payment. Hence, shareholders having shares as on cut-off date i.e. 30th June 2023 shall be eligible for dividend.


Global advances of the Bank increased to Rs 9,69,548 crore, up 18.5% YoY, led by robust retail loan book growth. Meanwhile, domestic advances of the Bank increased to Rs 7,95,560 crore, up 16.3% YoY. International advances grew by 6.3% sequentially in Q4FY23 and stood at Rs 1,73,988 crore.


It'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%).


Global deposits of the bank surged by 15.1% YoY to Rs 12,03,688 crore. Domestic deposits increased by 13% YoY to Rs 10,47,375 crore in March 2023.


The bank's operating income grew 34.6% YoY during the Q4 FY23 to Rs 6,823 crore, while operating profit for the March quarter stood at Rs 8,073 crore, up 43.3% YoY.


Return on Assets for FY23 stood at 1.03%, up by 43 bps YoY, while Return on Equity for FY23 increased by 648 bps YoY to 18.34%.

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Bank of Baroda(BoB) Q1 Result, Profit spikes 79%

  


Public sector lender Bank of Baroda on July 30 reported a massive 79.4 percent year-on-year growth in standalone profit at Rs 2,168 crore for the quarter ended June 2022, despite fall in other income and pre-provision operating profit. The significant decline in bad loans provisions aided the bottom line.


Net interest income during the June quarter grew by 12 percent to Rs 8,838.4 crore compared to year-ago period, with credit growth at 18 percent and 10.9 percent YoY increase in global deposits.


"Global advances increased by 18 percent YoY to Rs 8.39 lakh crore with domestic advances growth of 15.7 percent YoY at Rs 6.95 lakh crore, while global deposits rose by 10.9 percent YoY to Rs 10.32 lakh crore with domestic deposits growing 8.5 percent to Rs 9.09 lakh crore," Bank of Baroda said in its BSE filing.


The bank further said the net interest margin at 3.02 percent for the June quarter contracted 6 bps QoQ and 2 bps YoY.


"Global advances increased by 18 percent YoY to Rs 8.39 lakh crore with domestic advances growth of 15.7 percent YoY at Rs 6.95 lakh crore, while global deposits rose by 10.9 percent YoY to Rs 10.32 lakh crore with domestic deposits growing 8.5 percent to Rs 9.09 lakh crore," Bank of Baroda said in its BSE filing.


The bank further said the net interest margin at 3.02 percent for the June quarter contracted 6 bps QoQ and 2 bps YoY.

Total provisions and contingencies fell sharply by 58 percent YoY to Rs 1,684.80 crore for the quarter ended June 2022 and the sequential decline was 55 percent, while bad loans provisions dropped by 39 percent YoY to Rs 1,560 crore for the quarter.

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Six Indian banks sue GVK for Rs 12,114 crore: Report


Six Indian banks are reportedly suing the GVK Group for $1.5 billion or Rs 12,114 crore, according to the Times of India. The six banks include Bank of Baroda, Bank of India, Canara Bank , Icici Bank , Indian Overseas Bank, and Axis Bank.


According to the report, GVK defaulted on a $1-billion loan and a $35-million letter of credit facility given by banks in 2011, and a $160-million loan lent in 2014.


GVK Coal Developers (Singapore) and nine other GVK Group companies are being sued in the case which opens Monday.


As per the banks, GVK failed to make repayments as they fell due and failed to obtain a mining lease in the Alpha project in Queensland, Australia by December 31, 2012, which was a project milestone that had to be satisfied. The banks reportedly asked GVK in November 2020 to cancel the agreement and requested repayment. But neither GVK nor its guarantors has paid any of the sums owed, the banks claimed.


On the other hand, GVK argued that "the loans was to provide part funding for the acquisition of the Hancock companies in Australia to develop their assets — including the Alpha project — into working coal mines".


“The deterioration in the market for coal, the lack of third-party investment, legal challenges to the mining projects in the courts of Queensland, meant that very little progress was made to develop the mining assets,” GVK states. GVK states it could not obtain the mining lease owing to litigation by environmental groups but denies this was a “default”.

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Bank of Baroda Q4 result | Net profit jumps nine-fold YoY

 


The state-owned lender Bank of Baroda on May 13 declared a nine-fold jump in its profit after tax (PAT) of Rs 7,272 crore for the year ended March 2022 as compared to a PAT of Rs 829 crore registered in the corresponding quarter of the previous fiscal.



The net interest income (difference between interest earned and interest expended) for the year rose 13 percent to Rs 32,621 crore as compared to the NII of Rs 28,809 crore for FY21.



For the quarter ended March 2022, the PAT for the bank came in at Rs 1,779 crore as compared to a loss of Rs 1,047 crore incurred during the year-ago period. On a sequential basis; however, the profit for the quarter has declined 19 percent as against Rs 2,197 crore profit logged during the previous quarter.



The lender saw its NII during the quarter under review bump up by 21 percent to Rs 8,612 crore as compared to Rs 7,107 crore reported during the same period last year. On a sequential basis, the NII was flat with a marginal growth of 0.7 percent from Rs 8,552 crore registered during the previous quarter.



Global advances during the year grew by 8.9 percent on year and by 6 percent on quarter to Rs 8,18,120 crore.



The domestic advances also grew at a healthy 6.7 percent on year and 4.6 percent sequentially. The organic retail advances grew by ~17 percent and were led by growth in home loan (11.3 percent), personal loan (108 percent), auto loan (19.5 percent) and education loan (16.7 percent). The agriculture loan portfolio grew by 10.3 percent YoY to Rs 1,09,796 crore while the organic MSME portfolio grew by 5.4 percent on year to Rs 96,863 crore.



The deposits and savings also witnessed robust growth of high single to low double digits on a YoY basis.



The operating income for the year at Rs 44,106 crore improved by 5.7 percent on year as the operating profit witnessed a growth of 5.6 percent to Rs 22,389 crore.



The net interest margin for the quarter witnessed a healthy growth of 272 bps on year to 3.08 percent.



The bank was able to improve upon its return ratios of Return on Assets (ROA) and Return on Equity (ROE).



The ROA improved to 0.60 percent for the reported year from 0.07 percent in FY21 while ROE surged by 1016 bps YoY to 11.66 percent for FY22.



The bank worked upon its asset quality and the effect was evident in the improved NPA (non-performing assets) ratios.



Gross NPA Ratio for the quarter reduced by 226 bps to 6.61 percent compared to 8.87 percent in during the year ago quarter.



The net NPA ratio for the quarter improved from 3.09 percent during the same period a year ago to 1.72 percent for the reported quarter.



The slippages for the year at 1.61 percent were well under control and the credit cost for the year stood at 1.95 percent.





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Bank of Baroda(BoB) Net profit more than doubles in Q3

  


State-owned Bank of Baroda reported over two-fold jump in its net profit at Rs 2,197 crore in the quarter ended December 2021 on higher net interest income (NII) and lower provisions. The bank's net profit was at Rs 1,061 crore in the year-ago period.

The bank's operating profit also rose, albeit by a modest 8 per cent, to Rs 5,483 crore against Rs 5,084 crore. A 64 per cent fall in treasury income at Rs 499 crore dented the rise in operating profit.

Net interest margin – a key profitability measure – was at 3.13 per cent for the December quarter against 2.77 per cent over the same period last year. Net interest income (NII) -- the difference between interest earned and interest expended -- rose 14.4 per cent to Rs 8,552 crore.

Other income, which includes fee and treasury earnings, was 13.5 per cent lower at Rs 2,519 crore.

Provisions and contingencies fell 27 per cent year-on-year to Rs 2,507 crore against Rs 3450 crore.

The lender's asset quality improved with gross non-performing assets (NPAs) falling to 7.25 per cent at the end of December against 8.48 percent a year prior to that. Net NPA was at 2.25 per cent against 2.39 per cent.

The bank saw fresh slippages of Rs 2,830 crore in the December quarter while it recovered Rs 2,032 crore and upgraded Rs 1,272 crore from NPA accounts. It wrote off loans amounting to Rs 3,694 crore.

Its gross advances rose 3.56 per cent year-on-year to Rs 7.72 lakh crore

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Bank of Baroda Q2 results: Net profit rises 24%

 



Bank of Baroda
 reported a 24 per cent growth in standalone net profit mainly due to a 23 per cent increase in other income which includes fees and bad loan recoveries and helped by a fall in provisions as bad loans decreased year on year.

Net Profit of Rs 2,088 crore in the quarter ended September 2021 from Rs 1,679 crore a year earlier. Other income increased to Rs 3,579 crore from Rs 2910 crore last year.

The rise in other income made up for the tepid growth in net interest income (NII) which is the main income the bank earns by giving loans. NII increased 2 per cent to Rs 7566 crore largely as the cost of deposits fell to 3.52 per cent in September 2021 from 3.99 per cent a year ago and covered up for a 6 per cent fall in total interest earned.

A 2 per cent year-on-year fall in provisions also helped the bank's bottom line. Provisions fell to Rs 2754 crore from Rs 2811 crore a year ago and was lower than the Rs 4005 crore reported in June 2021.

Gross NPA ratio improved to 8.11 per cent in September 2021 from 9.14 per cent a year ago.
CEO Sanjiv Chadha said the worst of slippages was over and asset quality trends will only become better.

“We had guided for credit costs of 1.5% to 2% with likely trends on the lower of the range as we are sticking to our guidance this year ... credit costs have come down, recoveries have improved and margins have been steady,” Chadha said.

Recoveries increased to 3,246 crore including 1,246 crore from written-off accounts and higher than the total recoveries of 1,981 crore reported in the same quarter last year. As with other major banks, BoB was helped by a 877-crore recovery from DHFL.

Total loan book increased 2% to 7.34 lakh crore from 7.19 lakh crore a year earlier mainly due to a 10% rise in retail loans led by a 33% growth in personal loans and a 23% growth in auto loans. Corporate loan book remained flat after a 10% drop in the first quarter ended June.

Chadha said though the corporate growth has been tepid for more than a year, he expects some demand to come in the second half of the fiscal as sectors like cement, steel, green energy and electric vehicles expand capacities.

Retail mortgages make up 64% of the bank’s 1.35 lakh total retail loans with high growth businesses like personal loans making less than 5% of the book.

Chadha expects the bank’s loan growth to be close to double digits this year led by growth in retail loans and the bank will continue to grow the high-risk auto and personal loan businesses with caution using credit appraisals, and will have a preference for its own customers than outsiders.
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Bank of Baroda(BoB) posts net profit in Q1; NII rises 16%

 


State-owned Bank of Baroda (BoB) on Saturday reported a standalone profit of Rs 1,208.63 crore during the quarter ended June 2021, helped by decline in bad loans provisioning.


The bank had posted a net loss of Rs 864 crore in the same quarter a year ago.


Total income moderated marginally to Rs 20,022.42 crore from Rs 20,312.44 crore in the same quarter a year ago, BoB said in a regulatory filing.


The bank's asset quality improved with the gross non-performing assets (NPAs) falling to 8.86 per cent of the gross advances as on June 30, 2021, from 9.39 per cent by the end-June 2020. However, net NPA ratio rose to 3.03 per cent from 2.83 per cent as on June 30, 2020, the bank said.


As a result, total provisions and contingencies for the quarter eased to Rs 4,111.99 crore from Rs 5,628 crore a year ago.


Provisioning Coverage Ratio including floating provision stood at 83.14 per cent as on June 30, 2021.


A penalty of Rs 41.75 lakh has been imposed on the bank by Reserve Bank of India for the quarter ended June 30, 2021, it said.


As per the Reserve Bank of India (RBI) circular, the bank has opted to provide the liability for frauds over a period of four quarters, it said.


Accordingly, the carry forward provision as on June 30, 2021 is Rs 349.45 crore which is to be amortised in the subsequent quarters by the bank, it said.

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Bank of Baroda(BoB) Q4 reports net loss in Q4

 



Bank of Baroda today reported a net loss of Rs 1,047 crore due to a sharp rise in provisions for bad loans in the quarter and deterioration in asset quality on a reported basis.

Analysts had expected the state-owned bank to report a net profit of Rs 1,042.6 crore for the reported quarter.


The bank’s provisions for bad loans rose 44 per cent on-year during the quarter to Rs 4,593 crore. At the same time, the lender’s gross non-performing assets ratio stood at 8.87 as against 8.48 a quarter ago on a reported basis. The net NPA ratio was at 3.09 per cent as compared to 2.39 per cent reported in the previous quarter.

The lender’s bottomline was also affected by a sharp rise in tax expense to Rs 3,726 crore as against a tax write-back of Rs 2,230 crore in the year-ago quarter.


The public sector lender’s net interest income in the quarter rose 4.5 per cent on-year to Rs 7,107 crore. The non-interest bearing business had a stellar quarter as income rose 71 per cent on-year to Rs 4,848 crore.

Bank of Baroda’s pre-provision operating profit rose 27.3 per cent on-year to Rs 6,266 crore for the quarter ended March. Net interest margin of the lender deteriorated on-year by three basis points to 2.73 per cent.

The lender’s loan book grew 4.9 per cent on-year during the quarter to Rs 6.4 lakh crore, while deposits climbed 6.2 per cent to Rs 8.6 lakh crore. However, the retail loan portfolio showed firm growth of 14.4 per cent on-year to Rs 1.2 lakh crore

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Bank of Baroda(BoB) posts net profit on lower provisions


Bank of Baroda(BoB)
on Wednesday reported a Rs 1,061-crore profit for the quarter ended December, against a net loss of Rs 1,407 crore a year ago, as provisions fell 45% year-on-year (y-o-y) to Rs 3,957 crore.

Net interest income (NII) – the difference between interest earned and interest expended – stood at Rs 7,749 crore, was up 9% y-o-y. The net interest margin (NIM) rose 11 basis points (bps) sequentially to 3.07%. The operating profit rose 12.8% y-o-y to Rs 5,591 crore.

The gross NPA ratio at the end of December stood at 8.48%, down 66 bps sequentially. Net NPAs were at 2.39%, 12 bps lower than 2.51% at the end of the September quarter.

BoB has made contingent provisions of Rs 1,522 crore as a prudent measure. Total additional provisions as on December 31 stood at Rs 1,891.5 crore. The provision coverage ratio (PCR) improved to 85.46% from 77.77% a year ago.

The management said any worsening in the asset quality is likely to be led by the retail and MSME segments. Sanjiv Chadha, MD and CEO, said over the last two-three months, there has been a sharp recovery and the main beneficiary of this recovery has been the corporate piece. The return of demand, profits and pricing power have accrued mainly to companies and that adds resilience to the corporate book. Also, companies have already been through a phase of stress in recent years. So, the ones that remain standing are more resilient and offer comfort to the bank.

“There will be stress in some parts of the book, but we have fair handle in terms of how much is there and what are the likely implications. But, in terms of the known-unknowns, things which have not fully played out yet that is where the MSME and retail are,” Chadha said, adding, “Particularly, retail is the kind of book which was not being stress-tested. The kind of stress we are seeing now is something which is unprecedented, and therefore, it is likely that there may be some slippages which you cannot anticipate.”

It has become harder to foresee or address retail stress, Chadha said, because a glance at the bank’s restructured book shows that 80% of it has come from corporates and the retail accounts for a very small figure. “Therefore, we have not been able to address whatever stress might be there at least through the restructuring mode – which means that either people will actually start paying up on time [or] there is a fair possibility that some stress will come through NPAs.”

At the same time, BoB is not too worried about major retail slippages because unsecured retail loans constitute less than 1% of its loan book. More than 70% of the retail book is made up of home loans.

Domestic advances grew 8.31% y-o-y to Rs 6.33 lakh crore at the end of December. The current and savings account (CASA) ratio improved 240 bps y-o-y to 41.2% in Q3FY21. Domestic deposits rose 6.74% y-o-y to Rs 8.35 lakh crore. The bank expects to clock a loan growth of 7-8% in FY21 and raise Rs 2,000-4,000 crore through a qualified institutional placement (QIP) in the current quarter.

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Bank of Baroda launches WhatsApp banking: All you need to know

 


Bank of Baroda announced the launch of banking services on WhatsApp. The services offered by the bank via WhatsApp will be balance inquiry, mini statement, cheque status enquiry, cheque book request, blocking of debit card, information on Bank’s product and services, register/apply for digital products etc.

This initiative strengthens the Bank’s digital presence by providing ease to its customers from the comfort of their homes. The key benefits engaged with the service are 24X7 availability of banking services, no additional requirement of application download, easy access and convenience to all customers, availability on both Android and iPhone at no additional service charge.

Interestingly, even non-customers can also use this platform for queries related to Bank’s products, services, offers, ATM & branches location. The familiarity and simplicity of the solution makes it convenient for the customers to avail banking services in a seamless manner via WhatsApp.

A.K. Khurana, Executive Director, said on the launch, “We are consistently working towards introducing simple and innovative banking solutions using latest technologies. With the growing prominence of social media, we believe that WhatsApp banking will offer immense convenience to our customers to meet their banking requirements."

How to activate Bank of Baroda banking services on WhatsApp

1) Register: Save Bank’s WhatsApp Business Account Number 8433 888 777 in your Mobile Contact list

2) Send message: Send “HI" on this number using WhatsApp platform and initiate the conversation

Alternatively, you may click on this link to start conversation directly on Bank’s WhatsApp number.

Bank of Baroda is India’s leading public sector bank with a strong domestic presence. The Bank’s distribution network includes 8,200+ branches, 10,000+ ATMs, 1,200+ self-service e-lobbies and 20,000 Business Correspondents.

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Bank of Baroda(BoB) Q2 results: Net profit doubles


 State-owned Bank of Baroda on Thursday reported a standalone net profit of Rs 1,678.6 crore for July-September quarter (Q2FY21) on the back of lower provisons. In the previous quarter of the current fiscal (Q1FY21), the lender had incurred a loss worth Rs 864.26 crore. On a yearly basis, PAT grew 128 per cent from Rs 736.6 crore.

On a consolidated basis, profit was Rs 1,771.22 crore for Q2FY21, as against a net loss of Rs 678.71 crore in the June quarter. In the year-ago period, however, consolidated net profit stood at Rs 853.41 crore. 

The numbers beat Street expectations by a huge margin. Analysts at Motilal Oswal Financial Services, for instance, had pegged the net profit at Rs 139.4 crore, while those at Phillip Capital had expected the PAT to stand at Rs 541.7 crore. 

Profit before tax (PBT) for the quarter under review jumped 126.33 per cent YoY to Rs 2,50.23 crore in Q2 from Rs 1,126.76 crore in Q2FY20. In the June quarter, pre-tax loss was Rs 864.26 crore.

Net interest income (NII) came in at Rs 7,507.53 crore for the quarter under review, rising marginally from Rs 7,028 crore income earned in Q2FY20. Sequentially though, the income increased from Rs 6,816 crore. Analysts at Phillip Capital had expected the NII to come in at Rs 6,887.4 crore.

Provisions and asset quality

Provisions set aside in the September quarter declined sharply to Rs 3,001.59 crore on a QoQ basis from Rs 5,627.7 crore set aside in Q1FY21. Of these, provisions for NPA stood at Rs 2,277.25 crore. In Q2FY20, provisions stood at Rs 4,209.16 crore.

"In accordance with the RBI guidelines, the bank was required to make provisions of not less than 10 per cent of the outstanding advances in respect of borrower account where asset classification benefit has been granted. However, the Bank had made provision at 20 per cent in March 31, 2020 while w.e.f. April, 2020 provision at 10 per cent is made wherever the said benefit is extended to the borrowers," the management said in a statement.

As per the details provided by the bank, loan accounts worth Rs 85,898.55 crore are under moratorium as of September 30, 2020. Loan accounts worth Rs 14,022.5 crore were classified at the end of Q2FY21.
As per the RBI's June 7 circular, the bank has made additional provision of Rs 633 lakh during the quarter ended September 30, 2020 and holds total provision of Rs 3,615.50 crore as on September 30, 2020. 

The asset quality improved margianlly to 9.14 per cent in Q2FY21 from 9.39 per cent in Q1FY21. Net NPA, meanwhile, was at 2.5 per cent, down from 2.8 per cent. If the bank had declared those accounts as NPA, which it has not classified as bad loan due to the Supreme Court's ruling, the GNPA would have come in at 9.33 per cent and NNPA would have been 2.67 per cent.

Non-Performing Assets Provisioning Coverage Ratio (including floating provision) is 85.35 per cent as on September 30, 2020. In absolute terms, GNPA was Rs 65,698 crore in Q2FY21, down from Rs 69,132 crore in the June quarter of FY21. NNPA slipped from Rs 19,449.68 crore in Q1FY21 to Rs 16,794.93 crore.

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This Indian PSU banks' have exposure to Sintex Industries


Punjab National Bank (PNB)
reported yet another scam on Thursday to the tune of Rs 1,203.26 crore. The public sector reported its exposure to Sintex Industries as “fraud”, its exposure to Sintex Industries.

“Pursuant to the applicable provisions of Sebi's Listing Obligations and Disclosure Requirements (LODR) and the bank's policy, "we inform reporting of borrowal fraud of Rs 1,203.26 crore in NPA account of Sintex Industries Ltd (SIL)," PNB said in a regulatory filing.

The fraud reporting pertains to the large corporate branch at Ahmedabad zonal office, it added.

"The fraud of Rs 1,203.26 crore is being reported by bank to RBI in the accounts of the Company (SIL). Bank has already made provisions amounting to Rs 215.21 crore, as per prescribed prudential norms," the PSU bank said in a BSE filing.

This after the stressed textile company said it defaulted on its debt repayment of Rs 49.54 crore to a total of 10 investors. Of this amount, Rs 45.84 crore is the principal amount while the remaining Rs 3.70 crore was the due interest.

Sintex Industries’ total debt stands at Rs 7,358.88 crore. According to a TOI report, the total exposure of public sector banks to Sintex could be as much as Rs 6,000 crore. The banks have already classified the Sintex account as a non-performing asset (NPA) but will now will have to make full provision for the loan within four quarters – which is a requirement account classified as fraud.

According to Brickwork Ratings, at Rs 1,203.26 crore, PNB has the highest exposure to Sintex followed by Bank of Baroda (BoB) at Rs 649 crore, it rises to Rs 949 crore if the exposure of Dena Bank and Vijaya Bank, which merged with BoB, is taken into account. Another PSU bank Union Bank of India has an exposure of Rs 621 crore, including the erstwhile Andhra Bank which was merged into Union Bank followed by Canara Bank (erstwhile Syndicate Bank) at Rs 472 crore, Exim Bank at Rs 416 crore, Punjab & Sindh Bank Rs 333 crore, Andhra Bank Rs 250 crore.

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Bank of Baroda posts net loss in Q1 due to higher provisions

Public sector lender Bank of Baroda (BoB) on Friday reported a net loss of ₹864 crore for the three months to June, owing to higher provisions for loans that are still standard.
The bank's loss came as a surprise to the market as a Bloomberg poll of 12 analysts had predicted a profit of ₹514 crore. The bank had posted a net profit of ₹710 crore in the same period last year.

BoB's provisions rose 71% on a year-on-year (y-o-y) basis to ₹5,628 crore. Of this, the bank said ₹1,811 crore was towards standard accounts, including ₹996 crore for loans under moratorium where the asset classification benefit was granted.


“Of the ₹1,811 crore, half is accounted for by the provisioning that has been done as per the RBI dispensation for assets that have not slipped on account of the moratorium. The other half of nearly ₹900 crore is on account of a government-guaranteed loan the bank has," said Sanjiv Chadha, chief executive, Bank of Baroda.
The total amount due for this loan is ₹7,600 crore, of that about ₹5,600 crore is a guaranteed by the government, said Chadha.

The bank's gross bad loan ratio or total bad loans as a percentage of total advances, fell 89 basis points (bps) y-o-y to 9.39%. Its asset quality improved in the June quarter as net NPA ratio also declined 112 bps from the same period last year.

The bank’s total loans under moratorium has declined to 21.4% at the end of the June quarter. This includes, 5.74% of loans less than ₹1 million and 15.69% more than ₹1 million.

Its net interest income, or the difference between the interest earned on loans and paid on deposits, increased 5% y-o-y to ₹6,816 crore in Q1 FY21. The bank's net interest margin (NIM), a measure of profitability, stood at 2.55%, down 8 bps from the sequential quarter.

On RBI’s recent announcement of the one-time loan recast window, Chadha said that the scheme was announced only a few days back and the bank has at review its portfolio.

“Maybe a few weeks from now, once we have done a review of our accounts in light of the RBI instructions, we should be able to give you a better answer," said Chadha, adding that the bank could also look at restructuring assets beyond this provision, if required.

The public sector lender's total advances grew 8.6% y-o-y to ₹7.36 trillion, led by retail loan growth of 13.5% y-o-y. Its total deposits grew 4.3% y-o-y to ₹9.34 trillion.

The bank's capital adequacy ratio under Basel III norms stood at 12.84% at the end of the June quarter.
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