CONNECT WITH US
Fintech

Fintech

Bank of Baroda’s 18.5% loan growth masks slower underlying expansion

ET BFSI Fintech logo

Published on

Add as a preferred source on Google
Bank of Baroda’s 18.5% loan growth masks slower underlying expansion

The bank's international advances rose 22% sequentially in the September quarter, including Rs 60,500 crore of self-leverage against FCNR(B) deposits. Excluding this component, global advances grew 13.5% year on year, while domestic loans also expanded at the same rate.

FCNR(B)-linked self-leverage boosted reported global loan growth to 18.5%, while advances excluding this component grew 13.5%. FCNR(B) deposits accounted for 72% of domestic deposit accretion, while the CASA ratio improved to 39.1% excluding these deposits. Retail, agriculture and MSME lending led domestic credit growth, while corporate advances grew just 6.3% year on year. Bank of Baroda raised its FY27 credit growth guidance to 13-15% and deposit growth guidance to 11-13%, while retaining its NIM guidance of 2.75-2.95%.

Bank of Baroda’s global advances grew 18.5% year on year in the September quarter, but the headline growth was boosted by international lending backed by FCNR(B) deposits . Excluding this component, global advances grew 13.5%, indicating a more moderate pace of underlying credit expansion. FCNR(B) deposits also accounted for 72% of domestic deposit accretion during the quarter. Bank of Baroda’s international advances rose 22% sequentially in the September quarter, including Rs 60,500 crore of self-leverage against FCNR(B) deposits. Excluding this component, global advances grew 13.5% year on year, while domestic loans also expanded at the same rate, according to a report by Nomura. Advt

8% sequentially. 03 lakh crore, accounting for 72% of domestic deposit accretion. 1% sequentially. 4%. 1%. Domestic credit growth was led by retail, agriculture and MSME lending. 6% year on year, with auto loans rising 28%.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.