Bank of Baroda Q4 Results Preview: Net profit likely to decline 2%, asset quality may improve
Bank of Baroda Q4 FY24 Results Preview: PSU lender Bank of Baroda is estimated to register a 2.4 per cent year-on-year decline in standalone net profit to Rs 4,660 crore for the January-March period. The analysts estimate Bank of Barodas net interest margin (NIM) for the fiscal fourth quarter at 3.0 per cent.
Bank of Baroda Q4 FY24 Results Preview: State-run lender Bank of Baroda is all set to report its financial results for the quarter as well as the year ended March 31, 2024, on Friday, May 10. Analysts expect the PSU bank to stage a largely stable financial performance for the January-March period with some impact on the margin on account of rising operating expenses.
According to Zee Business research, Bank of Baroda is estimated to register a standalone net profit of Rs 4,660 crore for the March quarter, down 2.4 per cent on a year-on-year basis. The analysts expect the state-run lender's net interest income (NII), or the difference between interest earned and interest paid, to decline 1.1 per cent to Rs 11,400 crore.
Bank of Baroda's net interest margin (NIM), a key measure of profitability for financial institutions, is estimated to come in at 3.0 per cent for the fiscal fourth quarter, as against 3.1 per cent for the previous three months, according to the research.
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Analysts estimate the PSU bank's asset quality to improve.
According to Zee Business research, Bank of Baroda's net non-performing assets (NNPAs) as a percentage of total loans are estimated to be at 0.6 per cent in the March quarter as against 0.7 per cent in the previous three months. They peg the lender's gross non-performing assets (GNPAs) for the final quarter of FY24 at 2.9 per cent as against 3.08 per cent for the October-December period.
Bank of Baroda Q4 FY24 update: Key highlights
In a business update last month, Bank of Baroda said its domestic deposits grew 7.8 per cent on a year-on-year basis to Rs 11.28 lakh crore while domestic loans increased 12.8 per cent to Rs 8.97 lakh crore.
Its deposits and advances in the international markets increased 10.2 per cent and 12.4 per cent to Rs 13.26 lakh crore and Rs 10.89 lakh crore respectively.
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Bank of Baroda shares (BANKBARODA): Past performance
As of May 7, Bank of Baroda shares have risen 43 per cent in a year, outperforming gains of 22 per cent and 11 per cent in the Nifty50 and Nifty Bank indices respectively.
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