Bank of Baroda aims at keeping loan and deposit growth on equal footing: MD & CEO Sanjiv Chadha

In an exclusive conversation with Zee Business's Swati Khandelwal, Sanjiv Chadha, Managing Director and Chief Executive Officer, Bank of Baroda spoke about improved corporate tax and focus on loan growth and deposit growth.

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He said, "There has been a secular trend where improvement in the corporate trade cycle was noticed. Our gross NPAs and net NPAs have been decreasing every quarter despite the first, second and the third waves of COVID-19. "

"Now, with COVID behind us, whatever improvement is happening, it is benefitting the bottom line of the bank," he added.

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There has been a time where there was a surplus of liquidity and pricing was a challenge for the banks. "We have tried to keep the loan growth in check and to keep the pricing power intact, so that we can grant loans which is beneficial for the bank," Chadha informed. He also said that this was the reason behind the net increase in income.

He further added, "We have also tried to keep the loan growth and deposit growth equal. Our loan growth has been less but this has benefitted the margin. Our net increase in margin was around 2.70 per cent a year ago, this has increased to 3.13 per cent."

" Whenever there is an improvement of the credit cycle, the credit cost also decreases. We expected that our credit cost will be around 1.5 per cent to 2 per cent. So, on account of this we did the provisioning," said Chadha.

Incidentally, Bank of Baroda on Saturday reported doubling of its net profit to Rs 2,197 crore on a standalone basis in the quarter ended in December 2021. The lender had posted a net profit of Rs 1,061 crore in the same quarter a year ago.

The total income during the third quarter of 2021-22 rose to Rs 20,482.26 crore as against Rs 20,407.45 crore in Q3FY21, Bank of Baroda said in a regulatory filing.