Bank of Baroda (BoB) anticipates recovering Rs 2,500 crore from its exposure to National Company Law Tribunal (NCLT) accounts, stated Debadatta Chand, managing director and chief executive officer (MD and CEO).
Chand emphasized that while their NCLT portfolio remains challenging, they foresee a recovery in the fiscal year 2025. “Our NCLT portfolio is challenging, but we anticipate a Rs 2,500 crore recovery from NCLT accounts out of the total Rs 46,000 crore book in NCLT by FY25,” Chand said during a post-results press conference.
As per information provided in the lender’s investor presentation for the year ended March 2024, the bank’s total exposure amounts to Rs 45,977 crore. This includes Rs 32,749 crore from accounts referred to NCLT by others, Rs 6,346 crore from accounts filed by BOB at NCLT, Rs 4,594 crore from RBI’s second list, and Rs 2,288 crore from RBI’s first list. The bank maintains a provision coverage ratio of 99.99 percent for NCLT accounts.
Asset Quality
The bank’s Gross Non-Performing Assets (GNPA) for the fiscal year ended March 2024 stood at 2.92 percent, down from 3.79 percent in the previous year. Meanwhile, the Net Non-Performing Assets (NNPA) decreased to 0.68 percent from 0.89 percent.
In terms of sector-wise NPAs, the corporate business reported bad loans worth Rs 2,371 crore compared to Rs 3,636 crore a year ago. In the MSME sector, NPAs amounted to Rs 10,956 crore versus Rs 10,849 crore previously, while retail recorded NPAs of Rs 3,034 crore compared to Rs 3,296 crore last year. Agriculture witnessed total bad loans of Rs 7,081 crore compared to Rs 8,656 crore.
Q4 Figures
For the January-March quarter of the financial year 2023-24, the bank reported a net profit of Rs 4,886 crore, marking a 2.3 percent increase compared to Rs 4,775 crore in the corresponding period last year.
The bank’s NPA decreased to 2.92 percent from 3.79 percent in the corresponding quarter last year. Net NPA for the quarter stood at 0.68 percent compared to 0.89 percent a year ago.
Net interest income for the quarter was Rs 11,793 crore, up from Rs 11,525 crore last year. However, the net interest margin contracted to 3.18 percent from 3.31 percent.
Total domestic deposits grew by 7.7 percent year-on-year to Rs 11.28 lakh crore from Rs 10.47 lakh crore, while domestic advances increased by 12.9 percent from Rs 7.95 lakh crore in Q4FY23 to Rs 8.98 lakh crore in Q4FY24.
