Bank of Baroda PAT climbs 36% on NSE IPO gains, steady income

Net interest income grew 9% year-on-year to Rs 13,026 crore. However, the net interest margin declined to 2.74% from 2.77% in the preceding quarter. The other income jumped 96% to Rs 6,881 crore during the quarter, which was largely on the back of NSE’s listing. Chand said the bank booked a cash profit of Rs 1,340 crore on the part-sale of its holdings in the bourse, and additionally, there were valuation gains on the residual stake as well.

The bank has revised its performance guidance upwards due to robust growth in demand for credit. Chand said the loan growth is expected to grow at 13-15% from earlier guidance of 12-14%, while deposits may rise 11-13%, up from 10-12%. The net interest margins will be in the 2-75%-2.95 % range. There will be a positive bias in NIM in the third and fourth quarters. Domestic deposits grew 16.6% YoY to Rs 14.84 lakh crore as on September 30, with the share of CASA deposits falling to 36.37% compared to 38.42% a year ago.

Domestic gross advances grew 13.5 YoY to Rs 11.88 lakh crore as on September 30, driven by retail and MSME segments. Retail loans grew 18%, while the MSME segment posted a growth of 21%. The asset quality improved during the quarter, with gross non-performing assets falling to 1.78% from 2.16% a year ago and net NPAs easing to 0.37% from 0.57%. Total provisions rose 93% to Rs 2,382 crore in the quarter.

As a step to buffer the balance sheet for expected credit loss (ECL) migration, the bank has made a provision of Rs 1,300 crore. It set aside another Rs 300 crore as a floating provision to absorb any impact of volatility for debt and equity portfolios, the lender said.