Bank of Baroda [BANKBARODA] announced a record net profit of ₹5,616 crore for Q4 FY24, driven by strong Net Interest Income and improved asset quality. The bank also unveiled FY27 growth guidance and a ₹6,000 crore capital raising plan.
Bank of Baroda [BANKBARODA] announced an 11.2% year-on-year increase in its Q4 consolidated net profit, reaching ₹5,616 crore, bolstered by healthy net interest income growth and improved asset quality.
The Reserve Bank of India's new Expected Credit Loss (ECL) framework is poised to be an ongoing factor affecting bank profitability, with Public Sector Undertaking (PSU) banks potentially facing a more significant impact compared to private banks with robust buffers.
Public Sector Undertaking (PSU) bank stocks witnessed a dip following the Reserve Bank of India's confirmation of the Expected Credit Loss (ECL) framework implementation from April 2027, raising concerns over future provisioning.
Projections indicate private sector banks could experience a more significant rise in Non-Performing Assets (NPAs) by FY27 compared to their public sector counterparts, primarily driven by increased exposure to unsecured loans.