Bank of Baroda has reported 3% growth in net profit at Rs 5047.73 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted 7% dip in net interest income (NII), while the core fee income of the bank also improved 14% in Q4FY2025. The Net Interest Margin (NIM) of the bank declined to 2.86% in Q4FY2025 compared to 3.27% in the corresponding quarter of previous year.

On business front, the bank as has posted 11% growth in business with strong 13% surge in loan book. The asset quality of the bank has improved in Q4FY2025. Bank has raised the credit to deposit ratio to 83.6% at end March 2025 from 81.7% at end March 2024. The domestic CASA ratio of the bank has improved on qoq basis to 40% at end March 2025 from 39.3% at end December 2024 and eased marginally from 41% at end March 2024.

Asset quality improves: The bank has improved asset quality in Q4FY2025.

The fresh slippages of loans stood at Rs 3159 crore in Q4FY2025 compared with 2915 crore in previous quarter and Rs 3200 crore in the corresponding quarter last year.

The recoveries of NPAs stood at Rs 1118 crore, upgradations at Rs 825 crore and the write-off of loans was at Rs 1852 crore in Q4FY2025.

Provision coverage ratio was steady at 93.29% at end March 2025 compared to 93.51% a quarter ago and 93.30% a year ago.

The capital adequacy ratio of the bank stood at 17.2% with Tier I ratio at 14.8% at end March 2025.

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Asset Quality Indicators: Bank of Baroda
'	Mar-25	Dec-24	Sep-24	Jun-24	Mar-24	Variation		'
						QoQ	YoY	'
Gross NPA (Rs Crore)	27834.88	28471.22	28551.20	30873.14	31833.63	-2	-13	'
Net NPA (Rs Crore)	6994.24	6825.06	6764.27	7231.53	7213.34	2	-3	'
% Gross NPA	2.26	2.43	2.50	2.88	2.92	-17	-66	'
% Net NPA	0.58	0.59	0.60	0.69	0.68	-1	-10	'
% PCR	93.29	93.51	93.61	93.32	93.30	-22	-1	'
% CRAR - Basel III	17.19	15.96	16.26	16.82	16.31	123	88	'
% CRAR - Tier I - Basel III	14.79	13.44	14.18	14.65	14.07	135	72	'
Variation in basis points for figures given in percentages and in % for figures in Rs crore

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Business Highlights:

Healthy business growth: The business of the bank has increased 11% YoY to Rs 2702496 crore end March 2025, driven by 13% surge in advances to Rs 1230461 crore. Deposits rose 10% to Rs 1472035 crore at end March 2025.

CASA deposits ratio improves qoq, eases yoy: The domestic CASA deposits of the bank increased 6% YoY to Rs 496462 crore at end March 2025. The current account deposits increased 15% to Rs 87778 crore, while saving account deposits rose 5% to Rs 408684 crore end March 2025. The domestic CASA ratio eased to 40% at end March 2025 compared to 41% at end March 2024, while improved from 39.3% a quarter ago. The domestic term deposits have increased 11% to Rs 745707 crore end March 2025. Overseas deposits have increased 16% to Rs 229866 crore end March 2025.

Strong retail loan growth: Advances growth was driven by retail loans rising 19% YoY to Rs 256633 crore at end March 2025, while credit to agriculture increased 14% to Rs 158324 crore and MSME 14% to Rs 136377 crore at end March 2025. The corporate credit has increased 11% to Rs 469777 crore end March 2025. The overseas credit rose 9% to Rs 209349 crore end March 2025.

Investment book of the bank increased 4% YoY to Rs 387576 crore at end March 2025. The SLR book moved up 2% to Rs 306518 crore, while non SLR book jumped 14% to Rs 63960 crore at end March 2025. The AFS book dipped 10% to Rs 87410 crore, while HTM book rose 3% to Rs 267361 crore at end March 2025. The duration of the overall investment portfolio stood at 3.95 years end March 2025 compared with 3.99 years at end March 2024.

Margins dip: The bank has shown 6 bps YoY jump in cost of deposits to 5.12%, while yield on advances declined 54 bps YoY to 8.21% in Q4FY2025. Thus, the NIM has dipped 41 bps YoY, while declined 8 bps qoq to 2.86% in Q4FY2025.

Branch expansion: The bank has network of 8266 branches and 10987 ATM`s end March 2025.

Book value of the bank stood at Rs 246.2 per share at end March 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 229.0 per share at end March 2025.

Quarterly Performance

NII declines as NIM narrows: Bank has recorded 4% increase in the interest earned at Rs 30642.02 crore, while interest expenses increased 10% to Rs 19622.39 crore in Q4FY2025. NII declined 7% to Rs 11019.63 crore in the quarter ended March 2025.

Healthy growth in the core fee income: Bank has posted strong 14% growth in core fee income to Rs 2176 crore, while the forex income increased 34% to Rs 314 crore and the treasury income jumped 140% to Rs 1245 crore, leading to 24% jump in the overall non-interest income to Rs 5209.83 crore in the quarter ended March 2025. However, the recoveries and other income declined 20% to Rs 967 crore.

Expenses ratio rises: The operating expenses of the bank increased 3% to Rs 8097.34 crore, as other expenses moved up 13% to Rs 3750.1 crore, while employee expenses declined 4% to Rs 4347.24 crore in Q4FY2025. Cost to income ratio rose to 49.9% in Q4FY2025 compared with 49.3% in Q4FY2024. The Operating Profit was flat at Rs 8132.12 crore.

Provisions and contingencies increase: The bank has shown 19% increase in provisions to Rs 1551.51 crore. The loan loss provisions declined 13% to Rs 1297 crore. However, the investment provisions rebounded to Rs 16 crore and standard asset provisions bounced back to Rs 150 crore and other provisions jumped 271% to Rs 89 crore.

Effective tax rate declined to 23.3% in Q4FY2025 from 28.2% in Q4FY2024. Net Profit rose by 3% YoY to Rs 5047.73 crore during quarter ended March 2025.

Financial Performance FY2025:

Bank has posted 10% increase in net profit to Rs 19581.15 crore in the year ended March 2025 (FY2025). The net interest income increased 2% to Rs 45658.68 crore, while non-interest income moved up 15% to Rs 16647.33 crore, pushing up net total income by 5% to Rs 62306.01 crore in FY2025. The operating expenses increased 6% to Rs 29871.38 crore, while provision and contingencies declined 2% to Rs 5980.25 crore, allowing profit before tax to increase 6% to Rs 26454.38 crore in FY2025. The cost-to-income ratio rose to 47.9% in FY2025 compared to 47.7% in FY2024. An effective tax rate declined to 26.0% in FY2025 compared to 28.5% in FY2024. The net profit has increased 10% to Rs 19581.15 crore in FY2025.

Bank of Baroda: Results
Particulars	2503 (3)	2403 (3)	Var %	2503 (12)	2403 (12)	Var %
Interest Earned	30642.02	29583.40	4	121441.64	112605.94	8
Interest Expended	19622.39	17790.57	10	75782.96	67884.41	12
Net Interest Income	11019.63	11792.83	-7	45658.68	44721.53	2
Other Income	5209.83	4191.47	24	16647.33	14495.37	15
Net Total Income	16229.46	15984.30	2	62306.01	59216.90	5
Operating Expenses	8097.34	7878.20	3	29871.38	28251.68	6
Operating Profits	8132.12	8106.10	0	32434.63	30965.22	5
Provisions & Contingencies	1551.51	1301.94	19	5980.25	6075.61	-2
Profit Before Tax	6580.61	6804.16	-3	26454.38	24889.61	6
EO	0.00	0.00	-	0.00	0.00	-
PBT after EO	6580.61	6804.16	-3	26454.38	24889.61	6
Provision for tax	1532.88	1917.67	-20	6873.23	7100.83	-3
PAT	5047.73	4886.49	3	19581.15	17788.78	10
EPS*(Rs)	39.0	37.8	'	37.8	34.4	'
Adj BV (Rs)	229.0	187.9	'	229.0	187.9	'
* 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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