BoB net income soars 88% to Rs 4,070 crore on higher advances, other income

Mumbai: Bank of Baroda (BoB) on Saturday reported an 88 percent jump in net income at Rs 4,070 crore in the June quarter boosted by healthy interest income on the back of asset repricing and higher loan sales. Net interest income (NII) grew 24.4 percent to Rs 10,997 crore, coupled with robust growth in non-interest income that grew 2.8 times. Sustained NII growth was buoyed by an 18 percent growth in advances coupled with traction in net interest margins (NIM), which grew 25 basis points (bps) to 3.27 percent, the bank said in a statement.

Global NIM stood at 3.27 percent, an increase of 25 bps, while domestic NIM rose 34 bps to 3.41 percent. This has had the yield on advances increasing to 8.40 percent during the reporting quarter from 6.58 percent in Q1FY23.

Cost of deposits rise to 4.68% from 3.46%

The cost of deposits rose to 4.68 percent from 3.46 percent and the cost-to-income ratio came down to 45.36 percent from 54.81 percent, which excluding treasury improved by 168 bps to 47.41 percent.

The bank saw a significant improvement in its asset quality with reduction in GNPA (Gross Non Performing Asset) by 275 bps to 3.51 percent and improvement in NNPA (Net NPA) to 0.78 percent, down 80 bps. In absolute terms GNPA came down 33.8 percent to Rs 34,832 crore and the provision coverage ratio stood at 93.23. The slippage ratio declined to 1.05 percent as against 1.71 percent a year ago.

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