Bank of Baroda · tone and specificity signals across the available quarters.
Language signals
The family silver, Ajmera sir, we kept it with the book, not otherwise, leading to a position wherein I have strengthened the structural balance sheet of the book bank, rather than again a short-term objective of booking profit.
We are not facing any incipient sickness in our portfolio, with SMA book is only 0.18% of our total standard asset and collection efficiency.
The bank would continue to have in this journey. But clearly, outlining the factor like we need to do a trade-off in terms of the margin requirement and also the growth at the same time.
The bank business model is working on a sustainable and a consistent and a stable outlook model.
We are the only bank to get into an ROA more than one, that is in September 2022. So I'm at an elevated level.
The account is a secured advances having a coverage much more than one... We do not see any challenge on this account, and we think we can recover the amount in full.
We have again declared a very good quarter, Q2, both in terms of a very strong top line and also a strong bottom line in terms of the net profit going up by 23.2% year-over-year, and 17.4% quarter-to-quarter.
The margin guidance that we had given, that is at 3.15 ± 5 basis points. In spite of the deposit cost going up by 5 basis points, 5 or 6 basis points quarter-to-quarter, because of the management of the ALM, we are able to maintain the margin guidance.
We are slightly lowering the guidance from 10-12% to 9%-11%, although we'll try to operate in the upper band of that, that is, that is at 11%.
Our performance has been consistent for many years, many quarters, in terms of the numbers that we give to the market.
The NIM has improved from global from 2.91% to 2.96%. The domestic has improved to 3.10%.
On a fuller basis, again, Q4, we are expecting a rise in the NIM. In that scenario, I think the guidance we are giving is 2.85% to 3%.
We are looking at a very sustainable business model wherein the growth in book, the growth in profit are something strong, robust, and consistent.
Our operating guidance for the margin for the full year is 3.10%. That means 3.05% ± 5 basis points with an upside bias.
The stance continues to be lowering the dependency on bulk deposit. That means this is a percentage of total deposits will not go up.
The profit numbers that you see for this quarter is purely out of the operation. We don't have any one-off anywhere in the other non-interest income or anywhere which gives slightly elevated level of profit.
Our credit guidance continue to be 11%-13% with upside, which we have done it this quarter and possibly going to do in Q4. Deposit is to be 9%-11%. At the same time, the ROA above 1%. Margin guidance is 2.85%-3%.
The point that I'm driving is a consistence, a consistency in terms of the income-earning potential of the portfolio, and the outcomes are very favorable in terms of a consistency and also at an elevated level of profit that we have operated.
The slippage of this year is lower than that of the slippage last year. The recovery of this year is higher than the recovery that of last year. Within the same year, the recovery is higher than that of slippage.
We are not giving a full year guidance now, the reason being the market is at a very inflection point.
I have not increased during the rise, so why should I reduce during the fall?
The profit for this quarter, INR 5,600 possibly is the highest in any quarter for the bank for many years, maybe for the decades.
Our net profit for Q4 2026 stands at INR 5,616 crore, registering a growth of 11.2% YOY, which is the highest ever quarterly net profit.
The loan guidance we are upsizing from the earlier guidance of 11%-13% to 12%-14% considering our performance, subject the global headwinds doesn't impact big time to the Indian market.