Bank of Baroda Reports 5.6% Growth in Q3 Profit, Enhanced Asset Quality
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Synopsis
On January 30, Bank of Baroda announced a 5.6% YoY rise in net profit for Q3 FY25, reaching Rs 4,837 crore. Its asset quality improved, with gross NPAs falling to 2.43%. The bank also reported significant growth in retail loans, particularly in auto and home loans.
Key Takeaways
- 5.6% YoY increase in net profit for Q3 FY25.
- Net profit reached Rs 4,837 crore.
- Asset quality improved with gross NPAs at 2.43%.
- Strong growth in retail loans, especially in auto and home segments.
- Return on equity stood at 17.01%.
Mumbai, Jan 30 (NationPress) The state-owned Bank of Baroda (BoB) announced a 5.6 percent year-on-year (YoY) increase in its net profit for the third quarter of the financial year 2024-25 (Q3 FY25). The bank’s net profit reached Rs 4,837 crore, up from Rs 4,579 crore in the same period last year.
In Q3 FY25, the bank’s net interest income (NII), which reflects the difference between interest earned and interest paid, increased by 2.8 percent YoY to Rs 11,417 crore, compared to Rs 11,101 crore during the corresponding quarter last year.
For the first nine months of the financial year (9MFY25), Bank of Baroda’s net profit surged by 12.6 percent to Rs 14,533 crore.
The operating profit for Q3 FY25 was Rs 7,664 crore, reflecting a 9.3 percent YoY growth, as per the bank’s filing to the stock exchange.
A significant contributor to this growth was a robust 34.1 percent increase in non-interest income, which amounted to Rs 3,769 crore.
The bank showcased strong asset quality, with gross non-performing assets (NPA) declining to 2.43 percent in Q3 FY25, down from 3.08 percent in the same quarter last year.
The net NPA ratio saw an 11 basis points drop to 0.59 percent compared to the previous year’s period. The slippage ratio, which indicates new bad loans as a percentage of advances, remained stable at 0.90 percent for the quarter.
Bank of Baroda's return on assets (ROA) was 1.15 percent for Q3FY25, while the return on equity (ROE) was reported at 17.01 percent.
The cost-to-income ratio slightly improved, decreasing by 4 basis points to 49.53 percent.
The provision coverage ratio (PCR), which indicates how much a bank reserves for bad loans, remained strong at 93.51 percent with technical write-offs and 76.03 percent without.
Credit costs, reflecting provisions for bad loans, stayed below 1 percent, recorded at 0.30 percent for the quarter.
The bank’s total global advances rose by 11.8 percent YoY, fueled by a robust expansion in its retail loan portfolio.
The retail segment experienced a 19.5 percent growth, with notable increases in key areas such as auto loans (21.1 percent), home loans (16.6 percent), mortgage loans (16.3 percent), and education loans (16.9 percent).
