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MUMBAI: Bank of Baroda (BoB) on Saturday reported a 28% rise in its net profit to Rs 4,253 crore for the quarter ended September, compared to a net profit of Rs 3313 crore in the corresponding quarter last year. The jump was due to an increase in net interest income, as loans grew faster than deposits.
The profit would have been higher had it not been for two large accounts slipping into default.One was an international account of Rs 500 crore, and the second was an aviation loan of Rs 1,773 crore.
BOB’s global advances grew 16.5% to Rs 8,34,723 crore from Rs 7,16,737 crore a year ago, while deposits rose 12% to Rs 10,74,114 crore from Rs 9,58,967 crore in September-end of 2022.
There was an improvement in terms of gross non-performing assets (NPAs), which came down to 3.32% of the gross advances by the end of September 2023, from 5.31% in the year-ago period. Net NPAs fell to 0.76% from 1.16% in the same quarter a year ago.
Announcing the results, BoB MD & CEO Devdutt Chand said the bank had taken action after the Reserve Bank of India‘s ban on onboarding new customers to its bobWorld app following irregularities in the process. “The bank has taken action at various levels and is engaging with the regulator,” said Chand.
He said that this week’s exit of Akhil Handa, former chief digital officer, was initiated by the bank, when asked whether it was a resignation or termination.
Chand said the RBI ban has not hit business. “Normally, if any channel goes down, other channels pick up significantly. We are tracking customer acquisition numbers and the number is better than the day the ban was announced,” said Chand.
The profit would have been higher had it not been for two large accounts slipping into default.One was an international account of Rs 500 crore, and the second was an aviation loan of Rs 1,773 crore.
BOB’s global advances grew 16.5% to Rs 8,34,723 crore from Rs 7,16,737 crore a year ago, while deposits rose 12% to Rs 10,74,114 crore from Rs 9,58,967 crore in September-end of 2022.
There was an improvement in terms of gross non-performing assets (NPAs), which came down to 3.32% of the gross advances by the end of September 2023, from 5.31% in the year-ago period. Net NPAs fell to 0.76% from 1.16% in the same quarter a year ago.
Announcing the results, BoB MD & CEO Devdutt Chand said the bank had taken action after the Reserve Bank of India‘s ban on onboarding new customers to its bobWorld app following irregularities in the process. “The bank has taken action at various levels and is engaging with the regulator,” said Chand.
He said that this week’s exit of Akhil Handa, former chief digital officer, was initiated by the bank, when asked whether it was a resignation or termination.
Chand said the RBI ban has not hit business. “Normally, if any channel goes down, other channels pick up significantly. We are tracking customer acquisition numbers and the number is better than the day the ban was announced,” said Chand.
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