Bank of Baroda's Q1 net profit declines by 52% yoy; gross NPAs at 11.40%

Key Highlights: 

• Bank of Baroda reports net profit of Rs 203.39 crore in Q1
• NIM for domestic operations stood at 2.48%
• Gross NPAs in value terms were at Rs 46,172.77 crore in Q1FY18

Bank of Baroda missed analysts estimates by reporting nearly 52% year-on-year decline in net profit for the quarter ended June 30, 2017. 

The bank witnessed net profit of Rs 203.39 crore in Q1, down by 51.98% compared to Rs 423.62 crore in the corresponding period of the previous year. 

However, Q1 net profit was a rise of 31.45% from Rs 154.72 crore in the preceding quarter. 

A Bloomberg poll estimated net profit of BoB to be at Rs 503 crore this quarter. 

Net Interest Income (NII) stood at Rs 3,404.95 crore in Q1, which was up by just 1% year-on-year (YoY) but down by 4.93% quarter-on-quarter (QoQ) basis. 

Net Interest Margin (NIM) for Domestic operations stood at 2.48% while NIM for Global operations stood at 2.12% for Q1 FY18.

Provisions for non-performing assets were at Rs 2,156.69 crore increasing by 8.57% from Rs 1,986.44 crore a year ago same period. While it was down by 11.06% versus Rs 2,425.07 crore in Q4FY17. 

Gross NPAs in value terms were at Rs 46,172.77 crore in Q1FY18 versus Rs 42,991.68 crore in Q1FY17 and Rs 42,718.70 crore in Q4FY17. As a percentange, gross NPAs were at 11.40% from 11.15% in Q1FY17 and 4.72% in Q4FY17. 

Provision Coverage Ratio (PCR) retained well above 65% and stood at 66.28% as on June 30, 2017. PCR excluding TWO improved consistently during the last 4 quarters and stood at 57.73% as on June 30, 2017

BoB stated that it has made provisions of 20% on the secured sub-standard advances as against the regulatory requirement of 15%. 

Domestic deposits grew by a healthy 10.66% on YOY basis contributed by a robust growth of 26.82% in Domestic CASA deposits on YOY basis. 

Domestic CASA as percentage of domestic deposits on terminal basis stood at 38.77% as on June 30, 2017 as compared to 33.83% as at June 30, 2016. On
average basis, Domestic CASA percentage stood at 37.70%. 

Total Advances (Net) at Rs 3,77,607 crore as at June 30, 2017 increased by 4.09% from Rs 3,62,766 crore as at June 30, 2016. Domestic advances (net) grew by 8.67% to Rs 2,72,369 crore as at June 30, 2017 from Rs 2,50,631 crore as at June 30, 2016.

The Bank’s International Business contributed 25.36% to the Bank’s Total Business against 27.14% as at Mar 31, 2017.