Bank of Baroda के Q4 Results, Loan ग्रोथ और NIMs पर जारी दबाव को लेकर Debadatta Chand का Outlook

Thank you for inviting me. If we talk about this financial year, our top-line numbers that you mentioned show strong growth. Domestic advances have grown almost 13.7%, overall advance growth is 13%, and deposit growth is 10.3%. Our main ramp has changed almost 200 bps from March 25 over March 24. So the bank's growth matrix is strong and consistent. This consistency is not just for one or two quarters; it has been running strongly for the last seven or eight quarters. Regarding profit, the bank's all-time profit for the full year is ₹19,581 crore. This quarter, profit is over ₹5,000 crore. We have given profit over ₹5,000 crore in two of the last four quarters. So the combination of growth and profit is a trade-off. I think Bank of Baroda's numbers show that well. Two items I want to mention: net interest income is a bit muted because of an elevated cost structure; deposit costs impacted the book in Q4. But net interest income, which includes treasury income and TW recovery, has been quite strong. We have given 15% growth in net interest income compared to 2.1% NII growth. Our ROA guidance has been consistently more than 1 for 11-12 quarters, and we are achieving it. So the bank's profitability matrix and growth are on strong pillars. Net profit growth is also 10% over last year. A significant achievement I highlighted earlier is that the group's net profit has gone above ₹20,000 crore. So I think this is a good performance outcome for Bank of Baroda. The bank is strongly focused on both growth and profit.

See, in different market conditions, asset-side pricing and liability-side have different norms. I mean, when we look at the customer class, the bank interprets it. We always keep a margin in mind when taking deposits and giving advances. So in any market scenario, the customer benefits on both sides. Lower cost of deposits because the market scenario has changed. So the cost of deposits will go lower. On the asset side, repricing will happen. Demand in the country will increase. So demand for customers may again be on the deposit side and loan side, benefiting the customer. So I am thinking that the treasury change seen this year, where repo rate cuts have already repriced retail loans, deposit cost moderation has already been seen in the wholesale market. It will come in retail deposits too. Many banks like us, where the peak rate was 7.30% without loading, have now come to 7.10%, and moderation will happen there. One factor that customers as depositors should look at is their real return rather than absolute return. So when inflation is very low, even if deposit costs are going down, their real return is protected. As long as real return is protected, I think customers should be happy with that.

See, the main thing is the flexi scheme, like the housing loan scheme. We have always tried to do a bit of bundling on both the deposit and advance sides, bring new innovative products, and tailor products to customer preferences. So this scheme you are referring to is also part of that. For existing retail loan borrowers, the 50 bps repo rate cut has already been passed on. There is a new scheme where the lowest rate under the scheme is 8%. This is just to create a new niche segment; all banks will do this, and new borrowers will come when we announce new schemes, do some bundling, and give some offerings. I think that's part of a normal banking process, and we have started it, and other banks will also start.