Bank reported improvement in performance in terms of asset quality, CASA deposits, profitability and capital. Bank’s Gross NPA ratio is now at 8.87% as of Mar’21 from 9.40% as of Mar’20. Slippage ratio declined to 2.71% in FY21 from 2.97% in FY20 led by domestic slippage ratio which declined to 2.08% in FY21 compared to 3.16% in FY20. Domestic CASA deposits increased by 16.48% YoY and Domestic CASA ratio is now at 42.87%, an increase of 3.8% YoY. Domestic advances increased by 4.91% YoY led by organic retail and agriculture loans which grew by 14.35% and 13.22% respectively.
Highlights
• Domestic CASA ratio increased to 42.87%, up by 380 bps YoY. Domestic cost of deposits further declined by 110bps YoY to 4.10% in Q4FY21.
• Domestic advances increased by 4.91% YoY led by domestic organic retail and agriculture loans which grew by 14.35% and 13.22% respectively. Within retail loans, auto loans increased by 27.79% YoY and personal loans grew at 27.21% YoY.
• NII increased to Rs 7,107 crore in Q4FY21 compared to Rs 6,798 crore a year ago, an increase of 4.54%. For FY21, net interest income grew at 4.95% YoY.
• Global NIM increased to 2.72% in Q4FY21 compared with 2.63% in Q4FY20 led by margin expansion in international business to 1.57% in Q4FY21 from 1.21% in Q4FY20.
• Non-interest income for Q4FY21 is up by 71.01% YoY to Rs 4,848 crore and increased by 19.84% for FY21 to Rs 12,364 crore. Recovery from TWO increased to Rs 2,040 crore in Q4FY21 as against Rs 280 crore in Q4FY20.
• Operating Profit for Q4FY21 is Rs 6,266 crore registering an increase of 27.30% YoY. For FY21, operating profit was Rs 20,630 crore, an increase of 9.17%
• Gross NPA ratio fell to 8.87% as on Mar 31, 2021 against 9.40% as on Mar 31, 2020 and Net NPA ratio to 3.09% as against 3.13% as on Mar 31, 2020. Slippage ratio declined to 2.71% in FY21 from 2.97% in FY20. Credit cost decreased to 1.68% in FY21 from 2.35% in FY20.
• PCR including TWO increased to 81.80% as on Mar 31, 2021 compared with 81.33% as on Mar 31, 2020.
• Bank reported a Profit Before Tax of Rs 2,680 crore for Q4FY21 on a standalone basis. Bank moved to new tax structure thus reporting a loss of Rs 1,047 crore because of DTA reversal. Excluding the impact of the change in tax regime, Bank would have reported profit after tax of Rs 2,267 crore in Q4FY21 and Rs 4,143 crore in FY21.
• Capital adequacy (CRAR) stands at 14.99% with CET-1 at 10.94% on a standalone basis and for the consolidated entity it stands at 15.74% and 11.80% respectively. Bank raised Rs 4,500 crore during FY21 through QIP issue and Rs 3,735 crore through AT-1 bonds.
Bank of Baroda announced its results for the Quarter/Year ended March 31, 2021, following the approval of its Board of Directors on May 29, 2021.
Business details
