Bank of Baroda Reports 6.19% Growth in Net Profit Amid Strategic Calibrations

Bank of Baroda announced a 6.19% increase in its June quarter consolidated net profit, reaching Rs 4,727.81 crore, driven by calibrated loan growth and strategic decisions to reduce reliance on bulk deposits. Despite a dip in other income and treasury operations, the bank anticipates recovering this shortfall in the upcoming quarters.

Bank of Baroda on Wednesday reported a 6.19 percent growth in June quarter consolidated net profit at Rs 4,727.81 crore, as the state-run lender calibrated loan growth.

On a standalone basis, the public sector bank's net profit grew 9.5 percent to Rs 4,458 crore. Core net interest income saw a 5.5 percent increase amid an 8.1 percent rise in lower advances and a net interest margin narrow by 0.09 percent to 3.18 percent. The overall deposit growth was recorded at 8.9 percent.

Chief Executive and Managing Director D. Chand said the bank undertook a calibration exercise, decreasing its reliance on bulk deposits which affected corporate lending. He expressed confidence in recovering the shortfall from Q2 and reaffirmed the bank's growth targets. Despite a 25 percent decline in other income and a dip in treasury operations, Chand highlighted robust prospects from sectors like infrastructure and renewable energy.