BANK OF BARODA ANNOUNCES FINANCIAL RESULTS FOR Q3FY2021

BANK OF BARODA ANNOUNCES FINANCIAL RESULTS FOR Q3FY2021
BANK OF BARODA ANNOUNCES FINANCIAL RESULTS FOR Q3FY2021

BANK OF BARODA ANNOUNCES FINANCIAL RESULTS FOR Q3FY2021


Domestic advances increased by 8.31% led by organic Retail and Agriculture loans at 13.78% and 14.08% respectively. Domestic CASA momentum continues with CASA ratio up by 240bps YoY to 41.20%. Credit deposit ratio increased to 81.5% as of Dec’20 from 80.1% as of Dec’19. 
Highlights
•    Global advances increased by 6.30% led by domestic organic retail and agriculture loans which grew by 13.78% and 14.08% respectively. Auto loans increased by 22.56% YoY. 
•    Domestic CASA ratio increased to 41.20%, up by 240 bps YoY. Domestic cost of deposits in Q3FY’21 is lower at 4.27%, a decline of 15bps QoQ.
•    Operating Profit for Q3FY’21 is Rs 5,591 crore registering an increase of 12.77% YoY and 0.70% QoQ. NII stood at Rs 7,749 crore, an increase of 8.65% YoY and 3.21% QoQ. 
•    Trading gains up by 55.22% YoY. Trading gains were at Rs 925 crore in Q3. Recovery from TWO stood at Rs 511 crore in Q3FY21 as against Rs 341 crore in Q2FY21.  
•    Domestic margins (NIM) increased to 3.07% in Q3FY21 compared with 2.96% in Q2FY21. Global NIM at 2.87% compared with 2.86% in Q2. 
•    Cost to income ratio for 9MFY21 declined to 47.74% from 48.21% in 9MFY20.
•    Gross NPA ratio stood at 8.48% as on Dec 31, 2020 against 10.43% as on Dec 31, 2019. Net NPA ratio to 2.39% as against 4.05% as on Dec 31, 2019.
•    Proforma GNPA ratio and NNPA ratio at 9.63% and 3.36% as of Dec 31, 2020.  
•    PCR has increased to 85.46% as on Dec 31, 2020 compared with 77.77% as on Dec 31, 2019 (85.35% as on Sep 30, 2020). Covid-19 related provisions stood at Rs 1709.45 crore. 
•    Bank reported a Net Profit of Rs 1,061 crore as on Dec 31, 2020 on a standalone basis and consolidated Net Profit is at Rs 1,196 crore.
•    Capital adequacy (CRAR) stands at 12.93% with CET-1 at 8.98% on a standalone basis and for the consolidated entity it stands at 13.60% and 9.76% respectively.
•    IT Integration of all the eVB and eDB branches completed successfully by Dec 2020. Bank is implementing a strategic transformation initiative which includes New Ways of Working and digital led experience for its customers to unlock growth potential.

Bank of Baroda announced its results for the Quarter ended December 31, 2020, following the approval of its Board of Directors on January 27, 2021
Particulars (INR crore)    Q3 FY 20      Q2 FY 21      Q3 FY 21      YOY (%) 
Interest Income    19,071    17,918    17,769    -6.83
Interest Expenses    11,939    10,410    10,020    -16.07
Net Interest Income (NII)    7,132    7,508    7,749    8.65
Non- Interest Income    2,738    2,802    2,896    5.77
Operating Income (NII+ Other Income)    9,870    10,310    10,644    7.85
Operating Expenses    4,912    4,758    5,054    2.89
Operating Profit    4,958    5,552    5,591    12.77
Total Provisions (other than tax) and contingencies    7,155    3,002    3,957    -44.7
of which, Provision for NPA    6,621    2,277    2,080    -68.58
Profit before Tax    -2,197    2,550    1,634     
Provision for Tax    -790    872    573    
Net Profit    -1,407    1,679    1,061     
NIM % (Domestic)    2.88    2.96    3.07     

Business details
Particulars (INR crore)    Q3 FY 20      Q2 FY 21      Q3 FY 21      YOY (%)
Domestic deposits    7,82,070    8,35,894    8,34,811    6.74
Domestic CASA    3,03,795    3,32,493    3,43,937    13.21
Global deposits    8,96,162    9,54,340    9,54,561    6.52
Domestic advances    5,84,466    6,05,245    6,33,039    8.31
Of which, retail loan portfolio (ex-portfolio purchase)    1,01,995    1,11,944    1,16,046    13.78
Global advances    7,01,267    7,18,957    7,45,420    6.30

Particulars    Q3 FY 20      Q2 FY 21      Q3 FY 21  
CRAR (%)    13.48    13.26    12.93
Tier-1 (%)    11.45    10.75    10.57
CET-1 (%)    9.85    9.21    8.98

Particulars    Q3 FY 20      Q2 FY 21      Q3 FY 21  
Gross NPA (%)    10.43    9.14    8.48
Net NPA (%)    4.05    2.51    2.39
PCR (with TWO) (%)    77.77    85.35     85.46
Slippage Ratio (%)    6.78    0.54     2.44
Credit Cost (%)    3.88    1.24     1.16

In its Interim Order dated September 3, 2020, the Hon’ble Supreme Court of India (SC), in a public interest litigation (Gajendra Sharma v/s Union of India & Anr), has directed that accounts which were not declared as NPA till August 31, 2020 shall not be declared as NPA till further orders. Based on the said interim order, the Bank has not classified any account pertaining to Domestic Operations as NPA, which was not NPA as of August 31, 2020.
Pending disposal of the case in Hon’ble SC, the Bank as a matter of prudence has made a contingent provision of Rs. 152156 Lakh. Further, interest and other income aggregating to Rs. 36993 Lakh has been reckoned in operating profit and as prudent measure an equal amount has been provided for. Total additional provision as on 31.12.2020 is Rs. 189149 lakh. If the Bank would have classified the said borrower accounts as NPA, the Gross and Net NPA ratio would have been 9.63% and 3.36% respectively.
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January 27, 2021 
Mumbai  

About Bank of Baroda  
Bank of Baroda (“The Bank”) established on July 20, 1908 is an Indian state-owned banking and financial services organization, headquartered in Vadodara (earlier known as Baroda), in Gujarat, India. Under the ‘Alternative Mechanism’ scheme, the Government announced the amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda which came into effect on April 1, 2019. 
Bank of Baroda is one of India’s largest banks with a strong domestic presence spanning 8,246 branches and 11,553 ATMs and Cash Recyclers supported by self-service channels. The Bank has a significant international presence with a network of 99 overseas offices spanning 20 countries.  
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