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Informist, Tuesday, May 6, 2025

 

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* Bank of Baroda Jan-Mar net profit INR 50.48 bln 
* Analysts saw Bank of Baroda Jan-Mar net profit INR 47.34 bln 
* Bank of Baroda Jan-Mar net profit INR 50.48 bln vs INR 48.86 bln year ago
* Bank of Baroda Jan-Mar total income INR 358.52 bln vs INR 337.75 bln yr ago
* Bank of Baroda Jan-Mar net interest income INR 110.20 bln, dn 6.6% on yr
* Bank of Baroda gross NPA ratio 2.26% as on Mar 31 vs 2.43% qtr ago 
* Bank of Baroda net NPA ratio 0.58% as on Mar 31 vs 0.59% qtr ago
* Bank of Baroda Jan-Mar provisions INR 15.52 bln vs INR 13.02 bln year ago
* Bank of Baroda provision coverage ratio 93.29% as on Mar 31
* Bank of Baroda Basel III capital adequacy ratio 17.19% as on Mar 31 
* Bank of Baroda to pay INR 8.35 per share dividend 
* Bank of Baroda: Hold floating provision of INR 6 bln as on Mar 31 
* Bank of Baroda FY25 net profit INR 195.81 bln vs INR 177.89 bln year ago 
* Bank of Baroda FY25 total income INR 1.381 tln vs INR 1.271 tln year ago 
* Bank of Baroda global advances INR 12.30 tln as on Mar 31, up 12.8% on yr 
* Bank of Baroda global deposits INR 14.72 tln as on Mar 31, up 10.3% on yr 
* Bank of Baroda Jan-Mar global NIM 2.86% vs 2.94% quarter ago
* Bank of Baroda Jan-Mar domestic NIM 3.02% vs 3.11% quarter ago
* Bank of Baroda Jan-Mar global cost of deposits 5.12% vs 5.08% qtr ago
* Bank of Baroda Jan-Mar cost-to-income ratio at 49.89% vs 49.53% qtr ago
* Bank of Baroda domestic CASA ratio at 39.97% on Mar 31, up 64 bps on qtr 
* Bank of Baroda retail loans at INR 2.57 tln as on Mar 31, up 19.4% on year 
* Bank of Baroda MSME loans at INR 1.36 tln as on Mar 31, up 14.2% on year 
* Bank of Baroda Jan-Mar fresh slippages INR 28.73 bln vs INR 25.03 bln qtr ago 
* Bank of Baroda Jan-Mar recoveries, upgrades INR 19.43 bln 
* Bank of Baroda recoveries, upgrades in Oct-Dec was INR 18.21 bln 
* Bank of Baroda Jan-Mar credit cost 0.44% vs 0.30% qtr ago 
* Bank of Baroda Jan-Mar slippage ratio 1% vs 0.90% qtr ago 

 

By Priyasmita Dutta

 

NEW DELHI – A healthy jump in other income helped Bank of Baroda make profit in the March quarter, albeit muted, with net interest income falling and provisioning going up at the same time. The public sector bank posted a net profit of INR 50.48 billion in the March quarter, up 3.3% on year. Sequentially, it was up 4.4%. The bank's other income during the quarter went up over 24% to INR 52.10 billion, led by treasury income of INR 15.59 billion, over double the year-ago figure. 

 

While Bank of Baroda's profits for the March quarter beat Street estimates, the estimates in itself were fairly divergent, ranging from INR 40.69 billion to INR 51.83 billion. Shares of the bank fell after it detailed the earnings for the quarter and, at 1447 IST, shares traded at INR 225.60 on the National Stock Exchange, down 9.5% from the previous close. The board of Bank of Baroda on Tuesday also decided to pay INR 8.35 per share as dividend for 2024-25 (Apr-Mar). 

 

During Jan-Mar, the total income of the bank went up 6.2% on year to INR 358.52 billion. Sequentially, it was up 3.4%. For FY25, the state-owned bank's net profit rose over 10% to INR 195.81 billion and total income increased 8.6% to INR 1.38 trillion.

 

Treasury income has been a saving grace for Bank of Baroda especially as the net interest income fell 6.6% on year to INR 110.20 billion during the March quarter. It was below the analysts' expectation of INR 117.05 billion. The net interest margin of the bank moderated to 2.86% in Jan-Mar from 2.94% a quarter ago. Bank of Baroda's domestic net interest margin during Jan-Mar was 3.02% lower than the 3.11% reported a quarter ago. 

 

The bank's business performance was steady, with global advances and global deposits rising nearly 13% on year and over 10% on year, respectively, to INR 12.30 trillion and INR 14.72 trillion as of Mar. 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 the earlier 12-14% and deposit growth to 9-11% from 10-12%. 

 

Within global advances, the gross domestic advances were up almost 14% on year at INR 10.21 trillion as of Mar. 31 and the international gross advances rose 8.8% on year to INR 2.09 trillion. Retail advances were up over 19% on year at 2.57 trillion at the end of March. Within this, the bank's personal loan book grew over 21% on year to INR 361.22 billion. The bank's home loan book grew over 17% on year to INR 1.31 trillion as on Mar. 31, while agriculture loan book grew over 14% on year to INR 1.58 trillion, and the micro, small and medium enterprise book increased over 14% on year to INR 1.36 trillion. The corporate book grew 8.6% on year to INR 4.12 trillion.

 

Within global deposits, the domestic deposits were up 9.3% on year at INR 12.42 trillion and international deposits were up nearly 16% on year at INR 2.30 trillion. The domestic current account savings account deposits ratio fell 106 basis points on year, but increased 64 bps on quarter to 39.97%. In Jan-Mar, the cost of deposits was 5.12%, higher than 5.08% a quarter ago and 5.06% a year ago. 

 

Bank of Baroda's Jan-Mar cost-to-income ratio went up by 60 bps to 49.89% from 49.29% a year ago and by 36 bps from 49.53% a quarter ago. The capital adeqaucy ratio based on Basel III norms was 17.19% at the end of March, higher than 15.96% a quarter ago and 16.31% a year ago.

 

Beyond lower net interest income, the bank's higher provisioning during the March quarter also took a bite off its profits. Provisions during Jan-Mar were up over 19% on year at INR 15.52 billion, and as a result, sequentially, the net non-performing assets ratio fell by 1 bps to 0.58% end of March, while gross non-performing assets ratio fell 17 bps to 2.26%. The bank's provision coverage ratio was 93.29% as of Mar.31, 22 bps lower than the quarter ago figure and 1 bps lower than the year-ago figure. Within its total provisions, the bank also held floating provision to the tune of INR 6 billion based on its floating provision policy. 

 

In Jan-Mar, Bank of Baroda's slippage ratio was 1%, 10 bps higher from December quarter but 12 bps lower from the March quarter of FY24. The credit cost was 0.44% in Jan-Mar, 14 bps higher from Oct-Dec, but 13 bps lower from Jan-Mar last year. The bank reported fresh slippages of INR 28.73 billion in the reporting quarter, while recoveries and upgrades in the same duration was to the tune of INR 19.43 billion as against INR 18.21 billion a quarter ago and INR 20.10 billion a year ago.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Akul Nishant Akhoury and Tanima Banerjee

 

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