Chand's Growth Focus Helps BOB Beat Peers

Fast loan growth and sharp decline in bad loans help the bank grow profits by 129% CAGR over three years.

- Rashmi Pratap

THE INDIAN BANKING sector is on a roll. There is growth on all parameters from revenues to profits. However, for Bank of Baroda (BoB), the pace has been particularly rapid. The public sector bank’s net profit grew at a CAGR of 129.7% in last three years, from ₹1,547.7 crore in FY21 to ₹18,767 crore in FY24, among the best in the industry. Combined net profit of all listed banks grew at a CAGR of 40.9% between FY21 and FY24. Alongside, the bank’s nonperforming assets (NPAs) more than halved to ₹31,834 crore at FY24-end from ₹66,671 crore at the end of FY21. Debadatta Chand, who served as executive director since March 2021 and took over as MD and CEO on July 1, 2023, and has been instrumental in ensuring all-round growth, credits three factors for the bank’s performance—robust growth in loan book; 26% jump in net profit; and asset quality.