Bank of Baroda UAE Operations, a branch of Govt. of India-owned Bank of Baroda, reported a net profit of Dh322 million for the year ending 2022. This was primarily driven by an increase in interest income, reduction in impairment losses and higher recovery under NPAs.
The bank has recorded a significant growth in its advances and deposit portfolio during the year. Whereas, the advances portfolio grew by 19 per cent to Dh13.89 billion, the customer deposits have increased by more than 12 per cent to Dh14.4 billion. Within the overall deposits, CASA deposits have clocked a significant growth of 18.81 per cent.
The bank’s net interest income registered a growth of 39 per cent in 2022 mainly driven by growth in the net loan portfolio. Net interest margins increased from 1.74 per cent in 2021 to 2.60 per cent in 2022 indicating a substantial improvement in the Bank’s ability to generate income from its interest-earning assets.
The bank’s ‘tier-1 capital ratio’ increased from 17.60 per cent in 2021 to 19.56 per cent in 2022 while the total capital adequacy ratio increased from 18.74 per cent in 2021 to 20.71 per cent in 2022. Provision coverage ratio also increased from 85.04 per cent in 2021 to 91.74 per cent in 2022. The advances to stable resources ratio fell from 88.53 per cent in 2021 to 82.25 per cent in 2022, indicating an improvement in the bank’s liquidity position. The bank’s net NPA ratio stands at 1.62 per cent for the end of December 2022 and recoveries under NPA have shown marked improvement in 2022.
The Bank’s chief executive Nishant Ranjan said: “We are pleased to report strong financial results for the year ending December 31, 2022. Our performance is a testament to our robust business model and our ability to navigate the challenging economic environment. We remain committed to providing our customers with innovative and competitive banking solutions to support the country’s economic growth and development while maintaining a strong focus on compliance and risk management.”
Once ramped up, the new centres are expected to each generate annual revenue of up to Dh200 million
Many residents opt for it in times of financial crunch and other urgent personal needs
Rents are projected to continue the upward trend across the country in 2024
The number of transactions carried out witnessed a significant increase compared to last year
The 57,000 sqm facility incorporates advanced technologies that include automated sort systems
Report notes that the GCC banking sector has experienced steady growth due to infrastructure projects, economic diversification efforts