Bank of Baroda - Q2 Results

Bank of Baroda - Q2 Results

Corporate Action
by 5paisa Research Team Last Updated: 2022-08-08T18:43:30+05:30

The profit growth showed by Bank of Baroda in the second quarter of FY22 was driven by lower interest costs and a sharply lower provisions for asset quality. This allowed the net profit to grow at 22.39% YoY to Rs.2,168 crore. Here is the story of the BOB results for Q2.


Bank of Baroda top line revenues were virtually flat, growing by just about 0.63% as lower interest yields on loans and investments put pressure. Revenues for the quarter came in at Rs.21,999 crore. In the June quarter, the revenues of BOB stood at Rs.21,249 crore.
 

Bank of Baroda Q2 Results
 

Rs in Crore

Sep-21

Sep-20

YOY

Jun-21

QOQ

Total Income (Rs cr)

₹ 21,998.76

₹ 21,861.23

0.63%

₹ 21,249.19

3.53%

Net Profit (Rs cr)

₹ 2,167.85

₹ 1,771.21

22.39%

₹ 1,186.54

82.70%

Diluted EPS (Rs)

₹ 4.19

₹ 3.83

 

₹ 2.29

 

Net Margins

9.85%

8.10%

 

5.58%

 

 

If you look at the 3 major revenue segments of treasury, retail and wholesale banking, the picture of revenues was mixed. Revenues from treasury were flat yoy. While revenues from wholesale banking were down -16% at Rs.6,920 crore, the revenues from retail banking were up 10% at Rs.7,103 crore.

Ironically, the picture on divisional operating profit was the opposite. Wholesale banking saw operating profits grow 17-fold to Rs.1,042 crore while on the other hand, the operating profits from retail banking fell -21% at Rs.7,103 crore. The reason was asset quality pressures in the retail book.

Net profits for the Sep-21 quarter increased by 22.39% at Rs.2,168 crore, despite flat revenues. This higher profit was largely attributed to sharply lower interest cost expended and also lower asset quality provisions made in the quarter. The net profit was 83% above the Jun-21 levels as the bank had made a huge provision in the Jun-21 quarter.

During the Sep-21 quarter, the ratio of current and savings accounts or CASA had improved by 368 bps. During the same period, the cost to income ratio reduced by about 70 bps to 48.54%. The net interest margins or NIM expanded by 7 bps to 2.85%, but this is still way below the private sector peer group levels.
Gross NPAs for the quarter dropped 100 bps to 8.11%, but remains fairly high on absolute basis.

Net profit margin for the Sep-21 quarter stood at 9.85% compared to 8.10% in Sep-21 quarter and a much lower level of 5.58% in sequential Jun-21 quarter.

Also Read:-

SBI Bank - Q2 Results


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