Bank of Baroda has posted a standalone net profit of Rs 4,775 crore for the fiscal fourth quarter ended March 2023, up 168% from Rs 1,779 crore a year ago, on account of higher net interest income and lower provisions.

The state-run bank’s net interest income (NII) in the March quarter rose 33.8% year-on-year to Rs 11,525 crore. For FY23, NII grew 26.8% YoY to Rs 41,355 crore.

Global net interest margin (NIM) stood at 3.53% in Q4FY23, up 45 basis points YoY. NIM for FY23 stood at 3.31 % versus 3.03% for FY22. 

Domestic NIM stood at 3.65% in Q4FY23, up 51 basis points YoY. NIM for FY23 stood at 3.42% versus 3.09% for FY22.

The bank’s asset quality improved, with gross non-performing assets (NPAs) falling to 3.79% in the January-March period, compared with 6.61% in the year-ago quarter.

Similarly, the net NPA ratio fell to a record low of 0.89% in Q4 FY23 as against 1.72% a year ago.

Provisions for the quarter fell 62% YoY to Rs 1,420 crore.

The bank declared a dividend at Rs 5.50 per equity share of the face value of Rs 2 each fully paid up for FY23.

Led by retail loan book growth, global advances jumped 18.5% YoY to Rs 9,69,548 crore.

Domestic advances increased to Rs 7,95,560 crore, up 16.3% YoY. International advances grew by 6.3% sequentially in Q4FY23 and stood at Rs 1,73,988 crore.

The bank's retail advances grew by 26.8%, driven by growth in auto loan (24.4%), home loan (19.5%) and personal loan (101.5%) percent).

The lender's mortgage and education loans grew 18.08% and 21.8%, respectively.

Global deposits grew 15.1% YoY to Rs 12,03,688 crore. Domestic deposits rose 13% YoY to Rs 10,47,375 crore in March 2023.

Bank of Baroda is targeting bad loan recoveries worth Rs 10,000 crore to Rs 12,000 crore in FY24.

It is also targeting a "moderate" credit growth of 12%-13% and expects net interest margin to remain stable at around 3.31%.