BoB stocks surge to all-time high on strong Q3 results
Bank of Baroda shares rallied over 4.25% today, reaching an all-time high of Rs. 249.65. The movement was driven by the lender's strong Q3 results. It announced an 18.8% increase in net profit for the third quarter of FY2024, reaching Rs. 4,579 crore compared to Rs. 3,852.7 crore during the same period last year. The bank's net interest income reached Rs. 11,101 crore. BoB's stock has gained over 10% in past five days and 48% in the past year.
Asset quality improved, bad loans reduced
BoB showcased improved asset quality, with Gross Non-Performing Assets (NPA) dropping to 3.08% from 3.32% in the previous quarter. Gross NPA totaled Rs. 32,317 crore, down from Rs. 33,978.5 crore in the previous quarter. Net NPA also decreased from Rs. 7,596.7 crore in the last quarter to Rs. 7,208.3 crore in the quarter ended December 31.
Lower provisions, launch of new products from Bank of Baroda
Due to lower NPAs, Bank of Baroda set aside provisions of Rs. 666.3 crore, significantly lower than the Rs. 2,404 crore reported YoY and Rs. 2,160.6 crore in previous quarter. Provisions refer to the practice of setting aside funds from profits to cover potential losses arising from bad loans. Also, the bank has introduced a Current Account Package featuring seven new Current Account products. Each product is designed to cater to specific business banking needs of various business segments.
