- 01 Aug 2022
- ICICIdirect Research
BoB posts good set of Q1FY23 numbers
BANKBARODA - 250 Change: 0.30 (0.12 %)News: Bank of Baroda posted good set of numbers on an overall basis healthy growth and broadly steady operating metrics. The net interest income was up 12% YoY and 2.6% QoQ to Rs8838 crore this was mainly driven by healthy credit growth as net interest margin contracted modestly by 2 bps YoY to 3.02%. Other income sharply declined by 58.7% YoY and 53.1% QoQ to Rs1182 crore as a result of lower treasury income. C/I ratio jumped from 49.4% to 54.8% QoQ. Provisions declined 45.9% QoQ to Rs1685 crore as asset quality improved which in-turn boosted net profit to Rs2168 crore, up 79.4% YoY and ahead of our estimates. GNPA and NNPA declined by 35 bps and 14 bps QoQ to 6.26% and 1.58% respectively. Strong credit off-take was driven by 23% YoY rise in retail loans while international loans (17% of total book) also reported healthy growth of 30.6% YoY. Total Deposit book jumped by 10.9% YoY in which Domestic deposits were up 8.5% YoY to Rs9.1 lakh crore. Domestic CASA up by 11% YoY and CASA ratio stood at 44.18%.
Views: Improvement in core earnings and lower provisioning to result in uptick in RoE ahead.
Impact: Positive.