Bank of Baroda expects to recover Rs 2500 crore from NCLT accounts, says MD & CEO

Bank of Baroda on May 10 reported a net profit of Rs 4,886 crore for the January-March quarter of the financial year 2023-24

Public sector lender Bank of Baroda (BoB) is expecting to recover Rs 2500 crore from its exposure to National Company Law Tribunal (NCLT) accounts, said Debadatta Chand, managing director and chief executive officer (MD and CEO).

The MD highlighted that their book to NCLT is sticky but they expect recovery to happen. “In NCLT, our book is sticky, there will be recovery in FY25. We expect Rs 2,500 crore recovery from NCLT accounts out of the total Rs 46,000 cr book in NCLT in FY25,” Chand said at a post-results press conference.

According to the information available in the lender’s investor presentation, for the year ended March 2024, the bank has a total exposure of Rs 45,977 crore. Out of this, Rs 32,749 crore is from accounts filed by others at NCLT, Rs 6346 crore is from the accounts filed by BOB at NCLT, Rs 4594 crore is from RBI 2 list and Rs 2288 crore is from RBI 1 list. The bank has a provision coverage ratio of 99.99 percent under NCLT accounts.

Asset quality

The lender’s GNPA for the year ended March 2024 was at 2.92 percent, from 3.79 percent a year back. And NNPA of the lender stood at 0.68 percent from 0.89 percent.

On sector wise NPA, the lender’s corporate business had bad loans worth Rs 2371 crore compared to Rs 3636 crore a year back. In the MSME business, the lender’s NPA was at 10,956 crore versus 10,849 crore and retail recorded NPAs of Rs 3034 crore compared to Rs 3296 crore last year. Agriculture had total bad loans of Rs 7081 crore compared to Rs 8,656 crore.

Q4 numbers

The lender on May 10 reported a net profit of Rs 4,886 crore for the January-March quarter of the financial year 2023-24, which marks a 2.3 percent jump as compared to a net profit of Rs 4,775 crore clocked in the year-ago period.

The bank's NPA stood at 2.92 percent, down from 3.79 percent in the corresponding quarter last year. On the other hand, net NPA for the quarter stood at 0.68 percent as compared to 0.89 percent a year ago.

The lender's net interest income for the quarter stood at Rs 11,793 crore from Rs 11,525 crore from last year. The bank saw a compression in its net interest margin which fell to 3.18 percent from 3.31 percent last year.
Total domestic deposits of the bank stood at Rs 11.28 lakh crore, growing 7.7 percent yearly from Rs 10.47 lakh crore. And domestic advances grew by 12.9 percent from Rs 7.95 lakh crore in Q4FY23 to Rs 8.98 lakh crore in Q4FY24.