Bank of Baroda Q4 Results: Net profits jumped 159%, Rs 5.5 per share dividend declared

Leading PSU lender Bank of Baroda recently announced its results for the Jan - Mar ‘23 period. Amid rising demand for credit and a heightened interest rate scenario, the bank reported robust growth in net profits for the March quarter. Moreover, the total income also witnessed a yearly rise.

In terms of share price performance, Bank of Baroda has witnessed decent growth in recent times. Although the Bank of Baroda share price has gained just over 0.5% in 2023 so far, it is up by more than 83% in the past year.

So, is the share price growth a function of its impressive performance in the March quarter? How did Bank of Baroda perform in terms of key metrics like net interest income, margin, advances, deposits etc? What were the Bank of Baroda net profits? How much was the Bank of Baroda dividend? Let’s try and decode!

Decoding Bank of Baroda Q4 earnings

Bank of Baroda total income:

• Bank of Baroda reported total income of Rs 32,528 crores, up 44.8% from the previous year. 
   
• Interest income formed the bulk of the total income at Rs 27,077.3 crores for the Jan - Mar ‘23 period. This denotes a growth of 41.8% from the previous year.
   
• Other income for the March quarter came in at Rs 5,451 crores, up 61.6% from the previous year.
   

Bank of Baroda net interest income: Net interest income for the Jan - Mar ‘23 period came in at Rs 11,525 crores, up 33.8% from the previous year.

Meanwhile, non-interest income witnessed a yearly rise of 37.4% to Rs 3,466 crores for the Jan - Mar ‘23 period.
 

Bank of Baroda deposits:

• Total deposits at the end of the March quarter stood at Rs 12,03,688 crores, up 15.1% from the previous year.
   
•  Domestic CASA deposits at the end of the quarter came in at Rs 4,42,511 crores. This denotes a growth of 7.9% from the previous year.
   
• Term deposits came in at Rs 6,04,864 crores, up 17% from the previous year.
   
• International deposits grew by 31.4% from the previous year to Rs 1,56,313 crores.

Bank of Baroda advances:

• The lender’s gross advances balance at the end of the March quarter came in at Rs 9,69,548 crores. This denotes a yearly rise of 18.5% from the prior year.
   
• All the major loan segments witnessed a rise from the prior year. Retail loans at Rs 1,78,037 crores (up 26.8% YoY), Agriculture loans at Rs 1,24,247 crores (up 13.2% YoY), MSME loans at Rs 1,08,196 crores (up 11.7% YoY), Corporate loans at Rs 3,40,408 crores (up 13.2% YoY), International loans at Rs 1,73,988 crores( up 29.9% YoY) formed the majority of the loans for the lender.

Bank of Baroda net interest margin: Bank of Baroda reported a net interest margin of 3.53% at the end of the Jan - Mar ‘23 period. This marks an improvement from the previous year’s figure of 3.08%.

Bank of Baroda dividend: The lender declared a dividend of Rs 5.5 per share.

Bank of Baroda net profits: Bank of Baroda reported a consolidated net profit of Rs 5,255.2 crores at the end of the March quarter. This denotes a massive yearly jump of 159% from the previous year.

Bank of Baroda earnings: Analyst target price

CLSA: The top global brokerage has a “Buy” rating on the stock with a price target of Rs 225. Declining quantum of NPAs has been cited as a key positive by the firm for the lender which can aid the Bank of Baroda share price growth.

Macquarie: The renowned brokerage has a “Neutral” rating on the stock with a price target of Rs 180. Robust growth in advances has been highlighted by the firm as a key driver of the Bank of Baroda share price growth in the near term.

Kotak Institutional Equities: The top domestic brokerage has a “Buy” rating on the stock with a price target of Rs 200. 

Motilal Oswal: The renowned domestic brokerage has a “Buy” rating on the stock with a price target of Rs 240.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.