Mumbai: Bank of Baroda (BoB) will continue to focus on retail loan growth in the current fiscal year, unlike other banks, which are banking on corporate credit to drive loan growth.
“We expect business loan growth to be slow and steady, so the focus, like last year, will be on personal loan growth. We expect loan growth of 10-11% this year,” said Sanjiv Chadha, Managing Director and CEO of BoB.
In the March quarter, BoB reported 8.9% year-on-year growth in the loan portfolio, driven by 21% growth in foreign loans and 16.8% growth in the retail segment.
On Friday, the bank announced a net profit of ₹1,779 crore for the year ended March 2022 due to strong base revenue growth and lower provisions. This compares to a loss of ₹1,046 crores in FY21.
Basic income or net interest income increased by 21% for ₹8,612 crore in the fourth quarter compared to ₹7,107 crores in the corresponding quarter last year. Margins fell by 7 basis points to 3.14% at the end of March against 3.21% at the end of December.
Other income growth was down 72% year-on-year for ₹2,522 crores, mainly due to a sharp decline in treasury income and the base effect of higher recoveries. However, fee income increased by 6% to reach ₹1,848 crores.