Bank of Baroda has reported 6% growth in net profit at Rs 4837.34 crore for the quarter ended December 2024 (Q3FY2025). The bank has posted moderate 3% growth in net interest income (NII), while the core fee income of the bank improved 12% in Q3FY2025. The Net Interest Margin (NIM) of the bank declined to 2.94% in Q3FY2025 compared to 3.10% in the corresponding quarter of previous year.

On business front, the bank as has posted 12% growth in business with 12% surge in loan book. The asset quality of the bank was stable in Q3FY2025. Bank has maintained stable credit to deposit ratio at 84.2% at end December 2024 from 84.3% at end December 2023. The domestic CASA ratio of the bank was steady at 39.7% end December 2024 from 39.8% end September 2024, while eased from 40.7% end December 2023.

Asset quality stable: The bank has maintained stable asset quality in Q3FY2025.

The fresh slippages of loans stood at Rs 2915 crore in Q3FY2025 compared with 3110 crore in previous quarter and Rs 2618 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 1016 crore, upgradations at Rs 805 crore and the write-off of loans was at Rs 1174 crore in Q3FY2025.

Provision coverage ratio was steady at 93.51% at end December 2024 compared to 93.61% a quarter ago and 93.39% a year ago.

The capital adequacy ratio of the bank stood at 16.0% with Tier I ratio at 13.4% at end December 2024.

The risk weighted assets of the bank has increased 5% YoY to Rs 838609 crore end December 2024,

Asset Quality Indicators: Bank of Baroda
'	Dec-24	Sep-24	Jun-24	Mar-24	Dec-23	Variation
						QoQ	YTD	YoY
Gross NPA (Rs Crore)	28471.22	28551.20	30873.14	31833.63	32317.56	0	-11	-12
Net NPA (Rs Crore)	6825.06	6764.27	7231.53	7213.34	7208.31	1	-5	-5
% Gross NPA	2.43	2.50	2.88	2.92	3.08	-7	-49	-65
% Net NPA	0.59	0.60	0.69	0.68	0.70	-1	-9	-11
% PCR	93.51	93.61	93.32	93.30	93.39	-10	21	12
% CRAR - Basel III	15.96	16.26	16.82	16.31	14.72	-30	-35	124
% CRAR - Tier I - Basel III	13.44	14.18	14.65	14.07	12.67	-74	-63	77
Variation in basis points for figures given in percentages and in % for figures in Rs crore

'

Business Highlights:

Healthy business growth: The business of the bank has increased 12% YoY to Rs 2565495 crore end December 2024, driven by 12% surge in advances to Rs 1173034 crore. Deposits also moved up 12% to Rs 1392461 crore at end December 2024.

CASA deposits ratio stable qoq, declines over a year ago: The domestic CASA deposits of the bank increased 7% YoY to Rs 462617 crore at end December 2024. The current account deposits increased 14% to Rs 73557 crore, while saving account deposits increased 5% to Rs 389061 crore end December 2024. The domestic CASA ratio declined to 39.7% at end December 2024 compared to 40.7% at end December 2023, while remained steady from 39.8% a quarter ago. The domestic term deposits have increased 11% to Rs 703256 crore end December 2024. Overseas deposits have increased 27% to Rs 226588 crore end December 2024.

Strong loan growth: Advances growth was driven by retail loans rising 20% YoY to Rs 243360 crore at end December 2024, while credit to agriculture increased 13% to Rs 151050 crore and MSME 14% to Rs 131769 crore at end December 2024. The corporate credit has moved up 7% to Rs 438689 crore end December 2024. The overseas credit has increased 11% to Rs 208165 crore end December 2024.

Investment book of the bank increased 4% YoY to Rs 390951 crore at end December 2024. The SLR book moved up 4% to Rs 311851 crore, while non SLR book increased 8% to Rs 62934 crore at end December 2024. The AFS book dipped 12% to Rs 92385 crore, while HTM book rose 6% to Rs 268648 crore at end December 2024. The duration of the overall investment portfolio stood at 4.04 years end December 2024 compared with 3.95 years at end December 2023.

Margins dip: The bank has showed 12 bps YoY jump in cost of deposits to 5.08%, while yield on advances declined 16 bps YoY to 8.35% in Q3FY2025. Thus, the NIM has declined 16 bps YoY, while also fell 16 bps qoq to 2.94% in Q3FY2025.

Book value of the bank stood at Rs 243.4 per share at end December 2024, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 226.3 per share at end December 2024.

Quarterly Performance

NII growth moderates as NIM declines: Bank has recorded 8% increase in the interest earned at Rs 30907.61 crore, while interest expenses increased 11% to Rs 19490.72 crore in Q3FY2025. NII improved 3% to Rs 11416.89 crore in the quarter ended December 2024.

Healthy growth in the core fee income: Bank has posted strong 12% growth in core fee income to Rs 1732 crore, while the treasury income jumped 1761% to Rs 707 crore, leading to 34% surge in the overall non-interest income to Rs 3768.86 crore in the quarter ended December 2024. However, the recoveries and other income declined 15% to Rs 721 crore and forex income slipped 38% to Rs 229 crore in Q3FY2025.

Stable expenses ratio: The operating expenses of the bank increased 9% to Rs 7521.51 crore, as other expenses moved up 7% to Rs 3314.83 crore, while employee expenses increased 10% to Rs 4206.68 crore in Q3FY2025. Cost to income ratio was stable at 49.5% in Q3FY2025 compared with 49.6% in Q3FY2024, helping the Operating Profit to increase 9% to Rs 7664.24 crore.

Provisions and contingencies jump: The bank has showed 62% jump in provisions to Rs 1082.34 crore. The loan loss provisions declined 14% to Rs 871 crore, while investment provisions fell 8% to Rs 35 crore. However, the standard asset provisions rebounded to Rs 125 crore in Q3FY2025 from write backs of Rs 417 crore in Q3FY2024, while other provisions jumped 34% to Rs 51 crore contributing to the overall rise in provisions.

Effective tax rate declined to 26.5% in Q3FY2025 from 27.9% in Q3FY2024. Net Profit rose by 6% YoY to Rs 4837.34 crore during quarter ended December 2024.

Financial Performance 9MFY2025:

Bank has posted 13% increase in net profit to Rs 14533.42 crore in the nine months ended December 2024 (9MFY2025). The net interest income increased 5% to Rs 34639.05 crore, while non-interest income moved up 11% to Rs 11437.50 crore, pushing up net total income by 7% to Rs 46076.55 crore in 9MFY2025. The operating expenses increased 7% to Rs 21774.04 crore, while provision and contingencies declined 7% to Rs 4428.74 crore, allowing profit before tax to increase 10% to Rs 19873.77 crore in 9MFY2025. The cost-to-income ratio was steady at 47.3% in 9MFY2025 compared to 47.1% in 9MFY2024. An effective tax rate declined to 26.9% in 9MFY2025 compared to 28.7% in 9MFY2024.The net profit has increased 13% to Rs 14533.42 crore in 9MFY2025.

Bank of Baroda: Results
Particulars	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Interest Earned	30907.61	28605.13	8	90799.62	83022.54	9	112605.94	89588.54	26
Interest Expended	19490.72	17503.80	11	56160.57	50093.84	12	67884.41	48232.53	41
Net Interest Income	11416.89	11101.33	3	34639.05	32928.70	5	44721.53	41356.01	8
Other Income	3768.86	2810.49	34	11437.50	10303.90	11	14495.37	10025.84	45
Net Total Income	15185.75	13911.82	9	46076.55	43232.60	7	59216.90	51381.85	15
Operating Expenses	7521.51	6896.72	9	21774.04	20373.48	7	28251.68	24518.31	15
Operating Profits	7664.24	7015.10	9	24302.51	22859.12	6	30965.22	26863.54	15
Provisions & Contingencies	1082.34	666.34	62	4428.74	4773.67	-7	6075.61	7136.90	-15
Profit Before Tax	6581.90	6348.76	4	19873.77	18085.45	10	24889.61	19726.64	26
Provision for tax	1744.56	1769.43	-1	5340.35	5183.16	3	7100.83	5617.02	26
PAT	4837.34	4579.33	6	14533.42	12902.29	13	17788.78	14109.62	26
EPS*(Rs)	37.4	35.4	'	37.4	33.2	'	34.4	27.3	'
Adj BV (Rs)	226.3	184.0	'	226.3	184.0	'	187.9	155.2	'
* Annualized on current equity of Rs 1035.53 crore. Face Value: Rs 2, Figures in Rs crore
Source: Capitaline Corporate Database

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