Bank of Baroda, a public sector bank released their Q4 results on 10th May. The bank released a net profit of Rs 4,886 crore, a growth of 2.3 per cent year-on-year.
The operating income growth was augmented by 44.6% YoY growth in Non-Interest Income to Rs 14,495 crore in FY24. Operating Profit registered a healthy growth of 15.3% YoY and stood at Rs 30,965 crore in FY24.
The return on Assets increased by 14 basis points YoY standing at 1.17 per cent. The return on equity was higher by 61 basis points at 18.95 per cent for FY24.
BOB witnessed a significant improvement in the asset quality with the reduction in GNPA by 87 basis points to 2.92 per cent from 3.79 per cent in Q4 2023.
Global Business grew by 11.2 per cent to reach Rs 24,17,464 crore as of 31st March 2024.
The bank recommended a dividend at ₹7.60 per equity share of face value ₹2 each fully paid up for FY 2023-24. It has fixed June 28, 2024, as the record date for the eligibility of the dividend payment.
Business performance
The domestic advances increased by Rs 8,98,116 crore increased year-on-year by 12.5 per cent.
The Global deposits increased by 10.2 per cent to Rs 13,26,958 crore, while the domestic deposits increased by 7.7 per cent to Rs 11,28,514 crore.
Organic Retail Advances grew by 20.7 per cent led by strong growth across segments such as Auto Loan (23.8 per cent), Home Loans (14.1 per cent), Personal Loans (51.6 per cent), Mortgage Loans (11.4 per cent), Education Loans (19.6 per cent) on a YoY basis.
The agriculture loan portfolio grew by 11.6 per cent YoY to INR 1,38,640 crore.
Bank’s share plunges after announcement
The share price of Bank of Baroda dropped over 2 per cent after the result. On Friday, Bank of Baroda had its share price 2.67 per cent lower at Rs 255.65 on the Bombay Stock Exchange.
The strength of the Bank is the rising net cash flow and cash operating activity.
According to 27 analysts, 44 per cent of analysts think that you should buy the stock and overall the stock has outperformed.
