According to its MD and CEO, Bank of Baroda anticipates recovering Rs. 2500 crore from NCLT accounts

The bank has a total exposure of Rs 45,977 crore for the year ending March 2024, based on the information provided in the lender's investor presentation.

On May 10, Bank of Baroda announced a net profit of Rs 4,886 crore for the fiscal year 2023–2024's January–March quarter.

According to managing director and CEO Debadatta Chand, public sector lender Bank of Baroda (BoB) expects to recoup Rs 2500 crore from its exposure to National Company Law Tribunal (NCLT) accounts.

The MD made it clear that while their book to NCLT is problematic, they still anticipate recovery. "Our book in NCLT is sticky; recovery is expected in FY25." At a news conference after the results, Chand said, "We anticipate recovering Rs 2,500 crore from NCLT accounts out of the entire Rs 46,000 cr book in NCLT in FY25.

The bank has a total exposure of Rs 45,977 crore for the year ending March 2024, based on the information provided in the lender's investor presentation. This includes accounts submitted by BOB at NCLT, accounts filed by others at NCLT for Rs 32,749 crore, accounts filed by RBI 2 list for Rs 4594 crore, and accounts filed by RBI 1 list for Rs 2288 crore. Under NCLT accounts, the bank's provision coverage ratio is 99.99 percent.

Quality of assets

In comparison to the previous year, the lender's gross non-performing asset (GNPA) dropped to 2.92 percent by March 2024. Additionally, the lender's NNPA decreased from 0.89 percent to 0.68 percent.

The lender's corporate unit had bad loans of Rs 2371 crore as opposed to Rs 3636 crore a year before, with respect to sector-wise NPA. The MSME industry saw an increase in NPAs from the lender to 10,956 crore from 10,849 crore, and from Rs 3296 crore to Rs 3034 crore for retail. Compared to Rs 8,656 crore, the total amount of bad loans in agriculture was Rs 7081 crore.

Q4 figures

On May 10, the lender announced a net profit of Rs 4,886 crore for the January–March quarter of the 2023–24 fiscal year. This is an increase of 2.3 percent over the net profit of Rs 4,775 crore recorded during the same time the previous year.

The bank's net profit margin (NPA) decreased to 2.92 percent from 3.79 percent in the same quarter previous year. However, net NPA for the quarter was 0.68 percent, down from 0.89 percent in the same period last year.

The net interest income of the lender for the quarter was Rs 11,793 crore, down from Rs 11,525 crore in the previous year. The bank's net interest margin contracted, down from 3.31 percent to 3.18 percent in the previous year.

The bank's total domestic deposits increased to Rs 11.28 lakh crore from Rs 10.47 lakh crore, a 7.7% annual growth. Additionally, domestic advances increased from Rs 7.95 lakh crore in Q4FY23 to Rs 8.98 lakh crore in Q4FY24, a 12.9 percent growth.