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Bank of Baroda’s Q4 net profit beats estimates; 370% dividend announced
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Key highlights of Bank of Baroda’s Q4FY24 earnings include a loan growth of 13% year-on-year and 4% quarter-on-quarter.
Bank of Baroda on Friday (May 10) reported a 2.3% rise in net profit for the fourth quarter of FY24. The bank’s performance surpassed the estimates of analysts, with net profit standing at ₹4,886.5 crore as opposed to the CNBC-TV18 poll projection of ₹4,576.2 crore.
Key highlights of Bank of Baroda’s Q4FY24 earnings include a loan growth of 13% year-on-year and 4% quarter-on-quarter.
Additionally, the Net Interest Margin (NIM) witnessed an improvement, reaching 3.27% compared to 3.10% in the previous quarter.
In terms of asset quality, the Bank of Baroda reported a reduction in its Gross Non-Performing Assets (NPA) ratio to 2.92% from 3.08% in the previous quarter.
The net NPA ratio stood at 0.68% in Q4FY24 compared to 0.89% in Q4FY23, while the Provision Coverage Ratio reached 93.30%.
However, slippages in the quarter increased to ₹3,200 crore from ₹2,618 crore QoQ. The slippage ratio in Q4 rose to 1.12% from 0.95% in Q3.
The lender’s net interest income for the quarter stood at ₹11,793 crore from ₹11,525 crore from last year. The bank saw a compression in its net interest margin which fell to 3.18% from 3.31% last year.
Total domestic deposits for the bank amounted to ₹11.28 lakh crore, reflecting a 7.7% annual growth from ₹10.47 lakh crore.
Domestic advances also witnessed a healthy increase of 12.9%, reaching ₹8.98 lakh crore in Q4FY24 from ₹7.95 lakh crore in Q4FY23.
Bank of Baroda also announced a dividend of ₹7.60 per equity share for the financial year 2023-24.
Through an exchange filing, the lender said that the board had recommended a dividend payout of 370% on each stock. The current face value of each share of Bank of Baroda is ₹2.
Accordingly, the 370% dividend translates into a payout of ₹7.60.
It has fixed June 29, 2024, to July 5, 2024, as book closure dates for its 28 AGM and dividend payment.
Shareholders having shares on the cut-off date of June 28 will be eligible for the payout.
In a noteworthy development, the bank reversed ₹31.32 crore in the March quarter of FY24 from the total ₹50.49 crore made on investments in alternative investment funds (AIF).
This reversal followed a clarification by the Reserve Bank of India (RBI) regarding AIF provisions guidelines.
Meanwhile, Bank of Baroda’s share price declined over 3% following the announcement of the Q4 results.
It settled 2.67% lower at ₹255.65 apiece on BSE.
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