Maharashtra: BoB Targets $ 4-5 Billion, BoI $1.2 Billion From RBI Forex Measures
"So far we have garnered $ 700 million of FCNR (B) deposits and expect to reach $ one billion": Debadatta Chand, MD and CEO of BoB
MUMBAI: State owned Bank of Baroda is targeting $ 4-5 billion of Foreign Currency Non-Resident (Bank), or FCNR (B), deposits under the Reserve Bank of India’s (RBI’s) concessional swap scheme while its peer Bank of India is looking at mobilising $ 1.2 billion.
Speaking to reporters at Q1FY27 earnings call on Friday, Debadatta Chand, MD and CEO of BoB said, “So far we have garnered $ 700 million of FCNR (B) deposits and expect to reach $ one billion. We are
targeting $ 4-5 billion under FCNR B deposits and overseas borrowing scheme.”
Chand said that the bank is looking at a credit growth of 12-14 percent, deposit growth of 10-12 per cent, Net Interest Margin of 2.75-2.95 per cent.
The lender's net profit fell 72 per cent year on year to ₹1,278 crore from ₹4,541 crore in the corresponding quarter last year. The fall in Q1 profit is due to a one-time expense of ₹5,680.23 crore incurred during the quarter, related to payments to NMC Group to settle a legal dispute. In July this year, Bank of Baroda agreed to pay $600 million in an out-of-court settlement to resolve years-long litigation linked to the collapse of United Arab Emirates (UAE)-based healthcare
provider NMC Health.
“Excluding this impact Net Profit would have been Rs 5,528 crore,” said the Bank. The Net Interest Income for Q1FY27 stood at Rs 12,524 crore (+9.5 per cent YoY). The domestic net interest margin stood at 2.93 per cent for the quarter while the operating profit for the quarter was Rs 8,127 crore.
On the asset quality front, gross non-performing assets (GNPA) rose to 1.99 per cent from 1.89 per cent in the March quarter, while net non-performing assets (NNPA) increased to 0.50 per cent from 0.45 per cent, indicating a sequential deterioration in the bank's bad loan ratios.
Bank of India’s net profit increased by 36.23 per cent YoY to ₹3,068 crore in Q1 FY27.Bank’s Operating Profit for Q1 FY27 grew to ₹ 5,051 crore with a growth of 25.99 per cent.