Bank of Baroda Q1FY25: Profit grows 9.5% YoY to Rs 4,458 cr; NII Rs 11,600 cr
Mumbai: State run lender Bank of Baroda (BOB) on Wednesday reported a standalone net profit of Rs 4,458 crore for the first quarter of the fiscal year 2025 (Q1FY25), up 9.5% from Rs 4,070 crore in the same period last year (Q1FY24).
Financial Highlights:
Net Interest Income (NII): NII increased by 5.5% year-on-year (YoY) to Rs 11,600 crore in Q1FY25.
Non-Interest Income: The bank reported a noninterest income of Rs 2,487 crore for the quarter.
Global Net Interest Margin (NIM): NIM stands at 3.18% in Q1FY25.
Yield on Advances: Yield on advances rose to 8.55% in Q1FY25, compared to 8.40% in Q1FY24.
Cost of Deposits: The cost of deposits remained stable sequentially at 5.06%, marking a 38 basis points (bps) increase YoY from 4.68% in Q1FY24.
Operating Income and Profit: Operating income for Q1FY25 was Rs 14,087 crore, while operating profit stood at Rs 7,161 crore.
Efficiency and Returns: The costtoincome ratio was 49.17% for Q1FY25. The return on assets (annualized) improved by 2 bps YoY to 1.13%, and the return on equity (annualized) was 17.45%.
On a consolidated basis, Bank of Baroda's net profit for Q1FY25 was Rs 4,728 crore, compared to Rs 4,452 crore in Q1FY24.
Asset Quality:
Gross NonPerforming Assets (NPA): The bank's gross NPA reduced by 11.4% YoY to Rs 30,873 crore in Q1FY25, improving the gross NPA ratio to 2.88% from 3.51% in Q1FY24.
Net NPA Ratio: The net NPA ratio decreased to 0.69% in Q1FY25 from 0.78% in Q1FY24.
Provision Coverage Ratio: The bank reported a provision coverage ratio of 93.32% including written off accounts (TWO) and 76.58% excluding TWO in Q1FY25.
Slippage and Credit Cost: The slippage ratio decreased sequentially by 7 bps to 1.05%, while the credit cost stood at 0.47% for Q1FY25.
Capital Adequacy:
Capital to Risk Weighted Assets Ratio (CRAR): The bank's CRAR was 16.82% as of June 2024, with TierI capital at 14.65% (CET1 at 13.08%, AT1 at 1.57%) and TierII capital at 2.17%.
Consolidated CRAR and CET1: For the consolidated entity, CRAR was 17.20% and CET1 was 13.57%.
Liquidity Coverage Ratio (LCR): The LCR stood at approximately 138% as of June 30, 2024.
Business Performance:
Global and Domestic Advances: The bank's global advances increased by 8.1% YoY to Rs 10,71,681 crore, with domestic advances rising by 8.5% YoY to Rs 8,81,785 crore.
Deposits Growth: Global deposits grew by 8.9% YoY to Rs 13,06,994 crore, while domestic deposits increased by 5.3% YoY to Rs 11,05,460 crore. Domestic CASA deposits grew by 6% YoY, reaching Rs 4,49,019 crore as of June 30, 2024. International deposits saw a significant YoY growth of 34.7% to Rs 2,01,534 crore.
Loan Portfolio Growth: The organic retail advances segment experienced a 20.9% YoY growth, with notable increases in auto loans (25.1%), home loans (14.7%), personal loans (39.2%), mortgage loans (11%), and education loans (18.8%).
The agriculture loan portfolio grew by 9.1% YoY to Rs 1,39,160 crore, while the total gold loan portfolio (including retail and agriculture) increased by 20.3% YoY to Rs 48,909 crore.
The organic MSME portfolio grew by 9.8% YoY to Rs 1,19,940 crore.
Corporate advances rose by 2.5% YoY to Rs 3,55,375 crore.
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