Bank of Baroda back in black, logs Rs 1,778.8 crore profit in Q4

State-owned Bank of Baroda on Friday reported a standalone net profit of Rs 1,778.8 crore for the fourth quarter ended March 31, 2022.

In the corresponding quarter last year, the bank posted a net loss of Rs 1,046.5 crore. The net profit for FY22 increased to Rs 7,272 crore in March 2022 (777 percent) from Rs 829 crore in FY21.

Net interest income (NII), which is the difference between the interest income a bank earns from its lending activities and the interest it pays to depositors, stood at Rs 8,511.6 crore against Rs 7,106.6 crore in the same period previous fiscal.

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Gross NPA stood at 6.61 percent in the March quarter against 7.25 percent in the December quarter. Net NPA came at 1.72 percent against 2.25 percent quarter-on-quarter.

In monetary terms, gross NPA stood at Rs 54,059 crore against Rs 55,997 crore quarter-on-quarter (QoQ), whereas Net NPA came at Rs 13,365 crore against Rs 16,465 crore (QoQ).

The fee income for the year grew by 12.6 percent YoY at Rs 6,409 crore and 5.8 percent YoY for the quarter to Rs 1,848 crore. Operating income for FY22 registered a growth of 5.7 percent YoY at Rs 44,106 crore.

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The cost of deposits reduced to 3.53 percent in Q4FY22 as against 3.71 percent in Q4FY21. Operating profit for FY22 stands at Rs 22,389 crore registering a growth of 5.6 percent YoY. Global NIM increased to 3.08 percent in Q4FY22 from 2.72 percent in Q4FY21.

The Return on Assets (RoA) improved to 0.60 percent in FY22 from 0.07 percent in FY21. Return on Equity (RoE) increased sharply by 1016 bps YoY to 11.66 percent. For the consolidated entity, net profit stood at Rs 7,850 crore in FY22 as against Rs 1,548 crore in FY21. The credit cost for the year was 1.95 percent, however, adjusted for prudential provisioning, proforma credit cost was 1.70 percent.

The CRAR (capital-to-risk weighted assets ratio) of the bank improved to 15.98 percent in March 2022 from 14.99 percent in March 2021. Tier-I stood at 13.49 percent (CET-1 at 11.74 percent, AT1 at 1.75 percent) and Tier-II stood at 2.49 percent as of March 2022. The CRAR and CET -1 of the consolidated entity stood at 16.47 percent and 12.34 percent respectively.

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Bank of Baroda's board of directors recommended a dividend at Rs 1.20 per equity share (Face Value Rs 2 each fully paid up) for the FY2021-22.

The results came after the close of the market hours. Shares of Bank of Baroda ended at Rs 94.95, up by Rs 1.10, or 1.15 percent on the BSE.