Latest news with #DebadattaChand
Time of India
2 days ago
- Business
- Time of India
Bank of Baroda, Canara Bank let go of ₹54,000 crore loans for margin safety
Kolkata|Mumbai: Large banks such as Bank of Baroda and Canara Bank collectively shed about ₹54,000 crore of corporate loans in the June quarter to protect their net interest margins from falling sharply. These loans, largely extended to various public sector undertakings , came under pressure for repricing following the 100 basis points (bps) repo rate cut since February. Some of these organisations sought revisions to their existing loans, beyond the already reduced rates, bankers said. Explore courses from Top Institutes in Please select course: Select a Course Category Management Data Analytics MCA Digital Marketing Project Management Public Policy PGDM Technology Product Management Leadership Data Science Design Thinking Degree Finance healthcare CXO Operations Management Others others MBA Cybersecurity Artificial Intelligence Data Science Healthcare Skills you'll gain: Duration: 11 Months IIM Kozhikode CERT-IIMK General Management Programme India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK GMPBE India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta CERT-IIMC APSPM India Starts on undefined Get Details Faced with the demand to lower interest rates further, the banks chose to let go of the business rather than compromise margins that were already under stress. In the June quarter, Bank of Baroda's corporate loan book fell 10% quarter-on-quarter to ₹3.7 lakh crore. Loans to NBFCs, which form nearly a third of the corporate book, were down 11.6% sequentially. "There were some transactions, we had to let it go because the pricing was not working. They are high-quality assets but do not give optimal margins. Because of fine pricing, we could not retain those customers," Bank of Baroda managing director and CEO Debadatta Chand said. In sync with lower bond yields , the pricing of loans to companies has gone from fine to very fine. BoB's corporate loan book fell by ₹42,000 crore in the first quarter of the current fiscal to ₹3.70 lakh crore. It has shed ₹15,000 crore in the NBFC loan book within the corporate loan portfolio. Some of the PSUs were negotiating interest rates on existing loans beyond the repo rate reductions, Canara Bank managing director & CEO K Satyanarayana Raju told ET. "Hence we requested them to repay," he said. The lender shed about ₹12,000 crore of loans in the first quarter given to NBFCs, including a large central PSU. "We need not compromise on margin while chasing balance sheet growth. The demand from the retail segment is good enough to take care of advance growth," Raju said. Canara Bank's gross advances grew 12.4% year-on-year to about ₹11 lakh crore. Canara's net interest margin contracted to 2.55% in the June quarter as compared with 2.73% in the March quarter. BoB's NIM shrank to 2.91% against 2.98% over the same period. A large public sector lender is luring corporation or NBFC borrowers with much cheaper 5.8-5.9% rates for one year, apparently to show top line growth, leading to a rate war, a senior bank executive said on the condition of anonymity. The falling bond yields also gave corporations another window for raising funds at lower rates. Fund raising through issuance of corporate bonds rose to a four-year high of ₹3.27 lakh crore in the June quarter at lower rates compared to bank lending rates, according to a BoB report.
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Business Standard
4 days ago
- Business
- Business Standard
Bank of Baroda Q1FY26 results: Net profit up 1.9%, margins compress
Public sector lender Bank of Baroda 's (BoB) net profit rose 1.9 per cent year-on-year (Y-o-Y) to Rs 4,541 crore in the first quarter of financial year 2025-26 (Q1FY26), aided by treasury income amid pressure on net interest margin. Sequentially, the net profit fell from Rs 5,048 crore. Net interest income (NII)—the difference between interest earned and interest expended—fell 1.4 per cent Y-o-Y to Rs 11,435 crore. Net interest margin (NIM) from domestic operations fell to 2.91 per cent in Q1FY26, down from 3.18 per cent in Q1FY25. 'Pressure on NII will continue to be there for the next quarter because the transition matrix, both on the asset and liability side, will fully realign in the next quarter and Q3 onwards. Banks may experience lower or negative growth in NII because the cost of deposits will take a bit more time to realign,' said Debadatta Chand, managing director and CEO, Bank of Baroda. Other income, including fees, commission, and treasury earnings, expanded by 88 per cent to Rs 4,675 crore in Q1FY26 from Rs 2,487 crore a year ago. Treasury gains increased to Rs 2,226 crore in the first quarter, compared to Rs 295 crore during the same period last year. 'RAM (Retail, Agri, and Micro, Medium, and Small Enterprises) was at 62.7 per cent because the growth in the corporate loan book was very low at 4.2 per cent, which is expected to increase in the subsequent quarter. However, the bank plans to grow RAM to 65 per cent in the next two to three years,' Chand said. The bank's domestic deposits expanded by 8.1 per cent Y-o-Y to Rs 12.04 trillion. The share of low-cost deposits—current account and savings account (CASA)—stood at 39.33 per cent in June 2025, down from 40.31 per cent a year ago. Going forward, deposit growth is expected to remain around 9-11 per cent. On the credit front, the guidance for FY26 is 11-13 per cent, said Chand. The asset quality profile improved, with gross non-performing assets (NPAs) declining to 2.28 per cent from 2.88 per cent a year ago. The net NPAs declined to 0.60 per cent from 0.69 per cent in June 2024. The provision coverage ratio (PCR), including those for write-offs, stood at 93.18 per cent in June 2025. The lender's capital adequacy ratio stood at 17.19 per cent, with the common equity tier I (CET-1) at 17.61 per cent. On Friday, the BoB stock closed 1 per cent lower at Rs 243.5 per share on the BSE.
Time of India
4 days ago
- Business
- Time of India
Bank of Baroda net profit rises 1.9% to Rs 4541 crore
Mumbai: Bank of Baroda reported a muted 1.9% rise in net profit for the June quarter, as dip in net interest income, higher provisions offset gains from strong growth in deposits and advances. Net profit stood at Rs 4,541.4 crore in Q1 FY26, up from Rs 4,458.2 crore a year earlier. The bank managed to report a profit despite only a marginal decrease in net interest income and near doubling of provisions because of a 88% year-on-year jump in other income to Rs 4674 crore in Q1 FY26, compared to Rs 2487 crore in Q1 FY25. The increase was driven by treasury income as bond yields fell. The bank's global deposits rose 9.1% year-on-year to Rs 14,35,634 crore, while advances grew 13.2% to Rs 11,86,585 crore. Net interest income fell 1.4% to Rs 11,434.8 crore, as the rise in interest expended outpaced the growth in interest earned. Interest earned grew 4.9% to Rs 31,091.5 crore, but interest expended rose 9% to Rs 19,656.7 crore, compressing margins. Operating expenses rose 13.7% to Rs 7,872.8 crore, adding pressure on the bottom line. He added that the bank has generated net profit of over Rs 4000 crore for the past 10 quarters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like We Have No Words For Dog The Bounty Hunter's Transformation Cash Roadster Undo Announcing the results, the bank's MD & CEO, Debadatta Chand said 'Our net interest margin declined by only 7 basis points as against an average of 17 basis points for other banks' He added that margins were expected to be under pressure for the next quarter as well as deposit costs will take some time to catch up with the fall in lending rates. He said that corporates continued to reduce their loans as they got cheaper funds from bond markets and other sources and most the loan growth was from agriculture retail and MSME. 'We are targeting a 11-13% growth in advances and 9-11% increase in deposits for the year,' Chand said. Provisions and contingencies, excluding tax, nearly doubled to Rs 1,966.9 crore from Rs 1,010.7 crore in the year-ago quarter. Despite the higher provisioning, the bank improved its asset quality, with gross NPAs declining 10.7% to Rs 27,571.7 crore. The results reflect continued balance sheet expansion, but with tighter interest margins and rising costs weighing on earnings. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
News18
25-06-2025
- Business
- News18
Bank Of Baroda Presents Rs 2,762 Cr Dividend To Govt After Record Profit
Last Updated: Bank of Baroda gave a Rs 2,762 crore dividend cheque to Finance Minister Nirmala Sitharaman for FY 2024-25. The Bank's net profit was Rs 19,581 crore. Bank of Baroda (Bank) presented a dividend cheque of Rs 2,762 crore for the financial year ended March 31, 2025, to Hon'ble Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman. The cheque was handed over by Debadatta Chand, Managing Director & CEO, Bank of Baroda, at the Finance Minister's office in North Block, New Delhi. For FY 2024-25, the Bank recorded an all-time high standalone net profit of Rs 19,581 crore, registering a year-on-year growth of 10.1%. The Bank declared a dividend of Rs 8.35 per equity share for FY 2024-25 which is 418% of the face value per share of Rs.2/-. Bank of Baroda Ltd.'s standalone net profit for the quarter ended March increased by 3.3% to Rs 5,048 crore, compared to Rs 4,886 crore in the same period last year. The net interest income—the difference between interest earned and interest paid—dropped 7% to Rs 11,020 crore for the quarter, down from Rs 11,793 crore reported in the corresponding quarter of the previous fiscal year. This figure is below Bloomberg's estimates. The net NPA ratio decreased by 10 basis points to 0.58% from 0.59% in the previous quarter. In absolute terms, the net NPA increased to Rs 6,994.24 crore from Rs 6,825.06 crore. Operating profit saw a slight rise of 0.3% to Rs 8,132 crore, compared to Rs 8,106 crore in the same quarter last year. Provisions increased by 43.4% to Rs 1,552 crore, up from Rs 1,082 crore in the previous quarter. The Government of India holds a majority stake of over 60% in Bank of Baroda. The dividend adds to the Centre's non-tax revenue, supporting fiscal consolidation efforts. First Published: June 25, 2025, 15:29 IST
India.com
25-06-2025
- Business
- India.com
Bank Of Baroda Gives Rs 2, 762 Crore As Dividend To Govt For FY25
New Delhi: Finance Minister Nirmala Sitharaman on Tuesday received a dividend cheque of Rs 2,762 crore on behalf of the government from the Bank of Baroda for the financial year ended on March 31, 2025. The cheque was presented by Bank of Baroda Managing Director and CEO Debadatta Chand to the Finance Minister at her North Block office in the presence of senior officials. Government-owned Bank of Baroda had recently announced a 3.3 per cent increase in its standalone net profit for Q4FY25 to Rs 5,048 crore, up from Rs 4,886 crore in the corresponding period of the previous year. The bank had also declared a dividend of Rs 8.35 per equity share for FY2024-25. During the January–March quarter, BoB generated Rs 30,642 crore in interest income, reflecting a 3.6 per cent rise from Rs 29,583.40 crore a year earlier. Earlier this month, Finance Minister Sitharaman received a dividend cheque of Rs 8,076.84 crore on behalf of the government from the State Bank of India (SBI) for the financial year 2024-25. India's top public sector companies in the financial, power and energy sectors have recorded a robust growth in profit during the January-March quarter of 2024-25, which is expected to further strengthen the government's fiscal position. The country's largest lender, the SBI, and insurance giant Life Insurance Corporation of India (LIC) led the charge with a net profit of Rs 18,643 crore and Rs 19,013 crore, respectively. The SBI's net profit for the financial year 2024-25 has now soared to Rs 70,901 crore, while LIC has recorded an impressive net profit of Rs 48,151 crore for the year. In the energy sector, Coal India earned a net profit of Rs 9,604 crore during the fourth quarter, while Indian Oil Corporation (IOC) registered a net profit of Rs 7,265 crore, with upstream oil exploration giant ONGC registering a net profit of Rs 6,448 crore during the quarter. In the power sector, the country's largest electricity producer, NTPC, recorded a net profit of Rs 7,897 crore, while the Power Finance Corporation (PFC), which also comes under the Ministry of Power, earned a robust Rs 8,358 crore. Power Grid Corporation of India also registered a strong profit of Rs 4,143 crore during the January-March quarter. Apart from higher contributions to the government's finances through higher dividends, the large public sector enterprises boost revenue through higher payments of corporate taxes. Besides, the large capex plans of these government-owned enterprises play a key role in driving growth and creating jobs in the economy. Meanwhile, the government has succeeded in meeting its fiscal deficit target for 2024-25, fixed at 4.8 per cent of the gross domestic product (GDP) in the revised budget estimate for the year, data released by the Controller General of Accounts on Friday showed. According to the CGA data, the central government collected Rs 30.36 lakh crore as revenue as both tax and non-tax receipts, which works out to 98.3 per cent of the revised Budget Estimates (RE). The earnings of PSUs constitute an important part of these non-tax receipts.
