BoB at new high

Bank of Baroda posted a stellar set of numbers for Q2FY23, with consolidated net profit registering a 57% (YoY) jump at Rs.3400 crore, beating all estimates by almost all brokerage and fund houses.

Operating profit on a consolidated basis stood at ?6,935 crore (? 5833 crore) compared with ?4,282 crore in the June 2022 quarter. 

The bank posted an industry leading 15% sequential growth in NII, led by strong broad-based advances growth and healthy margin expansion of 31bps to 3.33%.  

In an earnings call with analysts, the bank's management said that it expects overall credit growth to be around 14-16% for FY23. 

On the asset quality front, Gross NPA was at 5.31% v/s 6.26% (QoQ) and Net NPA improved from 2.83% to 1.16%.

BoB‘s fresh slippages for the quarter under review stood at Rs.3,479 crore v.s Rs.5,802 crore  (YoY) while Provisions towards bad loans were down 41% at Rs.1,628 crore. 

The market is thrilled with this performance and the stock price jumped to hit a 3-year high at Rs.161.75, up 12% while its 15% UC for the day stands at Rs.166.20. Profit booking at the higher end has pushed down the stock price to Rs.157 levels currently, nevertheless up 9.5%.