Earnings Review
Jump in other income helps Bank of Baroda beat Street view
This story was originally published at 19:25 IST on 30 January 2025
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--Bank of Baroda Oct-Dec net profit INR 48.37 bln
--Analysts saw Bank of Baroda Oct-Dec net profit INR 43.79 bln
--Bank of Baroda Oct-Dec net profit INR 48.37 bln vs INR 45.79 bln year ago
--Bank of Baroda Oct-Dec total income INR 346.76 bln vs INR 314.16 bln year ago
--Bank of Baroda Oct-Dec provisions INR 10.82 bln vs INR 6.66 bln year ago
--Bank of Baroda Apr-Dec net profit INR 145.33 bln vs INR 129.02 bln year ago
--Bank of Baroda Apr-Dec total income INR 1.02 tln vs INR 933.26 bln year ago
--Bank of Baroda Basel III capital adequacy ratio 15.96% as on Dec 31
--Bank of Baroda gross NPA ratio 2.43% as on Dec 31 vs 2.50% qtr ago
--Bank of Baroda net NPA ratio 0.59% as on Dec 31 vs 0.60% qtr ago
--Bank of Baroda provision coverage ratio 93.51% as on Dec 31
--Bank of Baroda Oct-Dec net interest income INR 114.17 bln, up 2.8% on yr
--Bank of Baroda Oct-Dec global NIM 2.94% vs 3.10% quarter ago
--Bank of Baroda global advances INR 11.73 tln as on Dec 31, up 11.8% YoY
--Bank of Baroda global deposits INR 13.92 tln as on Dec 31, up 11.8% YoY
By Priyasmita Dutta
NEW DELHI – A sharp jump in other income and an increase in interest income helped Bank of Baroda to post a net profit of INR 48.37 billion in the December quarter, up nearly 6% higher on year, beating Street estimates. Analysts had pegged the net profit of the state-owned bank at INR 43.79 billion. Sequentially, however, the bank's net profit fell almost 8%.
The bank's other income rose over 34% on year to INR 37.69 billion in the reporting quarter. However, the other income declined nearly 27% sequentially. The bank detailed the December quarter results post market hours. Shares of the bank closed at INR 222.39 on the National stock Exchange on Thursday, down 0.1% from the previous close.
Total income of the bank rose over 10% on year to INR 346.76 billion, but declined 2.2% sequentially. The net interest income of the bank rose 2.8% on year to INR 114.17 billion in the December quarter.
In the nine months ended December, the net profit of the bank rose nearly 13% to INR 145.33 billion and total income increased almost 10% to INR 1.02 trillion.
The net interest margin of the bank moderated to 2.94% in Oct-Dec from 3.10% a quarter ago.
The bank's business performance was steady, with both global advances and global deposits rising nearly 12% on year each to INR 11.73 trillion and INR 13.92 trillion, respectively, as of Dec. 31. Bank of Baroda had in October revised down its credit and deposit growth guidance for FY25 due to increased competition in the deposit market. The bank had reduced its credit growth guidance for the financial year to 11-13% from 12-14% and deposit growth to 9-11% from 10-12%.
Within global advances, the gross domestic advances were up almost 12% on year at INR 9.65 trillion as of Dec. 31 and the international gross advances rose over 11% on year to INR 2.08 trillion. Retail advances were up nearly 20% on year at 2.43 trillion at the end of December. Within this, the bank's personal loan book grew 24% on year to INR 343.40 billion. Home loan book grew almost 17% on year to INR 1.24 trillion as on Dec. 31. Agriculture loan book grew nearly 13% on year to INR 1.51 trillion and the micro, small and medium enterprise book increased almost 14% on year to INR 1.32 trillion. The corporate book grew nearly 7% on year to INR 3.87 trillion.
Within global deposits, the domestic deposits were up over 9% on year to INR 11.66 trillion and international deposits were up over 27% on year to INR 2.27 trillion. The domestic current account savings account deposits ratio fell 101 bps on year and 16 bps on quarter to 39.68%.
Bank of Baroda's Oct-Dec global cost of deposits increased to 5.08% compared with 4.96% a year ago but was lower than 5.12% a quarter ago. The credit cost was 0.30% compared with 0.65% a quarter ago. The bank's capital adequacy ratio was at 15.96% as of Dec. 31.
Asset quality improved slightly in the reporting quarter. The gross non-performing asset ratio of the bank improved to 2.43% as on Dec. 31 from 2.50% a quarter ago and the net non-performing asset ratio improved marginally to 0.59% from 0.60% at the end of September.
The bank's total provisions increased over 62% in Oct-Dec to INR 10.82 billion compared with INR 6.66 billion a year ago. However, it fell sharply from INR 23.36 billion reported a quarter ago. The provision coverage ratio was at 93.51% as on Dec. 31.
The bank reported fresh slippages of INR 25.03 billion in the reporting quarter. The slippage ratio fell to 0.90% from 0.95% a year ago. End
Edited by Saji George Titus
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