Baroda UP Bank Achieves Record Profits Despite Workforce Challenges

Baroda UP Bank has released its annual results for the fiscal year 2023-24 with flying colours. India’s largest Gramin bank’s audited financial data indicate a significant increase in net profit, colossal jump in advances, reflecting an outstanding performance.

The FY 2023-24 data show that the bank has also excelled across key metrics, including Non-Performing Assets (NPAs), Cash Deposit Ratio and business volume. Despite reeling with staff shortages, the bank has continued on an upward trajectory, demonstrating its resilience and ability to meet customer needs while maintaining robust growth.

Outstanding Profits amid Staff Shortage 

Baroda UP Bank reported remarkable financial results for its March audit, achieving a net profit of Rs. 333 crore. An AIRRBEA-affiliated Baroda UP Bank employees’ union member told Kanal that the bank’s net profit surged by 183.43%, while its operating profit soared by an incredible 2,254.78%, from Rs. 25.65 crore in the fiscal year 2022-23 to Rs. 604 crore in 2023-24. This significant leap indicates the bank's growing influence among rural customers.

The union member further noted that the bank’s advances grew by 22.55%, reaching Rs. 29,317 crore, highlighting its commitment to serving rural communities and reflecting the increasing trust of these customers.

Image: Audited Financial Data of the Baroda UP Bank 

Despite this financial success, the bank is facing a severe staff shortage. With 1,983 branches and 7,697 employees, Baroda UP Bank is dealing with increased workloads for its staff. Another banker, while appreciating the bank’s performance, criticised the intense work pressure. He mentioned, “The per-staff customer load is approximately 5,000, the highest among all Regional Rural Banks (RRBs), while the average staff per branch is nearly 3-3.25, the lowest. Despite these challenges, Baroda UP Bank has demonstrated impressive results.”

Image: Financial Details of Baroda UP Bank 

The staff shortage coincide with a 4.79% increase in business per branch compared to the previous financial year. This gap between staffing levels and business growth presents ongoing challenges for the bank as it continues to expand its reach in rural areas.

Improvement on NPA and CD Ratio

The latest financial data reveal that Baroda UP Bank has made significant strides in reducing NPAs. According to official records, the bank lowered its net NPA from 4.04% in FY 2022-23 to 2.25% in FY 2023-24. Additionally, the Gross NPA decreased from 7.53% to 5.85% during the same period. This notable reduction in NPAs, along with the absence of any fresh NPAs, demonstrates the bank’s effective risk management.

Regarding the Cash Deposit Ratio (CD Ratio), Baroda UP Bank recorded an increase of 5.87%, rising from 40.17% in FY 2022-23 to 46.04% in FY 2023-24. This improvement in the CD Ratio indicates a healthier balance between deposits and lending, reflecting the bank's growing stability.

Despite staff shortage and other challenges, Baroda UP Bank’s total business reached Rs. 92,986 crore, marking an 11.40% increase from the previous fiscal year. This impressive growth, achieved under challenging circumstances, showcases the bank's resilience and underscores the dedication of its workforce, despite the unaddressed issues they face.