New Delhi: Public sector lender Bank of Baroda (BOB), on May 16, recorded a considerable growth in March quarter profit at Rs 4,775.33 crore up 168.41 per cent compared to Rs 1,779 crore YoY basis.
The state-owned bank received Rs 25,857 crore as interest in Q4FY23, year-on-year (YoY), in contrast to Rs 18,174 crore in the same month last year. The bank also declared a dividend of Rs 5.5 per share.
“The lender’s Board recommended a dividend at Rs 5.50 (Rupees Five and Fifty Paise only) per equity share (Face Value Rs 2 each fully paid up) for the FY 2022-23 subject to declaration/approval at the ensuing 27th Annual General Meeting,” Bank of Baroda said in an exchange filing.
Furthermore, the bank also said, “It has fixed July 1 to July 7, 2023, as book closure dates for 27th AGM and dividend payment. Hence, shareholders having shares as of the cut-off date i.e. June 30, 2023, shall be eligible for dividend.”
Bank of Baroda’s financial growth
Gross NPA(non-performing asset) for March fell by 32 per cent YoY to Rs 36,763.68 crore against Rs 54,059.39 crore in Q4FY22. Net NPA also reduced by 37.3 per cent YoY to Rs 8,384.32 crore in Q4FY23 from Rs 13,364.65 crore in March last year.
Banks’ operating profit margin took a hike by 27.53 per cent in Q4FY23 against 27.23 per cent YoY.
Due to growth in profits, the bank made the announcement of a dividend at Rs 5.50 per equity share for the face value of Rs 2 each fully paid up for FY23.
Bank of Baroda stated that this vigorous growth in profitability was because of its healthy net interest income (NII) growth of 33.8 per cent and 26.8 per cent for Q4FY23 and FY23.
“BOB’s global advances registered a strong YoY growth of 18.5 per cent in Q4FY23 led by robust retail loan book growth. Bank’s organic retail advances grew by 26.8 per cent, driven by growth in high-focus areas such as auto loans (24.4 per cent), home loans (19.5 per cent), personal loans (101.5 per cent), mortgage loans (18 per cent) and education loans (21.8 per cent),” said the lender in a BSE filing.
