Analyst Concall
Personal loan book growth not a worry, says Bk of Baroda MD
This story was originally published at 21:07 IST on 30 January 2025
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MUMBAI – Growth in the personal loan segment does not worry Bank of Baroda, as it has shifted more towards the salaried class compared to previous years, the bank's management said in a post-earnings analyst call on Thursday. He said the bank would continue to grow this book at 24-25% going ahead.
Within the retail book, the personal loan book was up 24% on year at INR 343.40 billion for the quarter ended December. Sequentially, the personal loan book was up 7%. "So, our focus would be on salaried class personal loans, not that we would de-grow, but our focus would be more on the salaried class. We would continue to grow but with regard to the best of advances," Beena Vaheed, executive director of the bank, said in the analyst call. Overall, the retail book grew 19.5% on year to INR 2.43 trillion as on Dec. 31.
The gross non-performing asset ratio of the personal loan book increased to 3.54% as on Dec 31 from 3.16% a quarter ago. On this, Managing Director and Chief Executive Officer Debadatta Chand said that this forms roughly INR 1 billion of slippages, which is very small compared to the bank's normalised slippage amount is around INR 25 billion. "It is not very significant for me," Chand said.
On Thursday, the bank reported a net profit of INR 48.37 billion for the December quarter, up nearly 6% higher on year, beating Street estimates. Analysts had pegged the net profit of the state-owned bank at INR 43.79 billion. Sequentially, however, the bank's net profit fell almost 8%. The results were announced after market hours. On the National Stock Exchange, shares of the bank closed flat at INR 222.39 on Thursday. End
Reported by Kshipra Petkar
Edited by Avishek Dutta
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