Bank of Baroda Reports 23.2% Profit Growth Amid Deposit Challenges

Bank of Baroda reported a 23.2% rise in profit for the September quarter, reaching Rs 5,238 crore. Despite challenges in deposit growth, the bank's non-interest income and loan portfolios showed significant gains. It has adjusted growth targets amid systemic challenges and plans new strategies for the fiscal year.

On Friday, Bank of Baroda announced a 23.2% increase in its net profit for the September quarter, amounting to Rs 5,238 crore, although it adjusted its loan growth targets downward due to difficulties in accumulating deposits.

The state-owned bank experienced net profits of Rs 4,253 crore a year ago and Rs 4,458 crore in the prior quarter. Its core net interest income saw a 7.3% rise to Rs 11,622 crore, aided by a 11.6% increase in global advances and a slight margin improvement to 3.1%.

Despite wariness on deposits, the bank grew its base by 9.1% in the quarter. Non-interest income surged by 24% to Rs 5,181 crore, aiding substantial profit growth. CEO Debadatta Chand also cited the strategic appointment of Sachin Tendulkar as brand ambassador as a driver for enhanced growth.

(With inputs from agencies.)