InvestorQ : Can you tell me about the quarterly results announce by Bank of Baroda for the Sep-20 quarter?
Arya Nanda made post

Can you tell me about the quarterly results announce by Bank of Baroda for the Sep-20 quarter?

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Anjana Aiyar answered.
7 months ago
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While Bank of Baroda showed muted growth in business, the profits were sharply in the Sep-20 quarter. For the quarter, BOB reported 6.23% lower revenues at Rs21,854cr. However, the operating profit were almost flat at Rs5,510cr in the quarter.

The surprise factor was the net profit figure which more than doubled yoy at Rs1,794cr. This sharp spike in net profits is explained clearly by the Rs1,500cr lower provisioning in the Sep-20 quarter compared to the corresponding quarter last year.

For the Sep-20 quarter, the OPM was up nearly 150 bps at 25.21% while the NPM obviously doubled to 8.21%. The good thing was that BOB had to make for lower loan loss provisions in the current quarter with most of the potential COVID losses already provided for.

While overall gross NPAs are still high, they are lower on a yoy basis at 9.14%. The other story is that the net NPAs have come down to 2.51% meaning substantial part of the bad loans has already been provided for giving a comfort room for the bank.

BOB reported ROA of 0.59% putting it at par with the most profitable private banks in India in the midst of a tough quarter when overall business was difficult. Of course, the capital adequacy ratio at 13.26% means that the bank will need more capital to expand its loan book aggressively from these levels.

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