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Informist, Friday, Oct. 31, 2025

--Bank of Baroda: Made prudent provisions of INR 4 bln 

--Bank of Baroda: Focus continues to be at deleveraging bulk deposits 

--CONTEXT: Comments from Bank of Baroda mgmt in post earnings analyst call 

--Bk of Baroda: INR 4 bln provision may not be adequate for ECL norms adoption 

By Kabir Sharma and Vaishali Tyagi

MUMBAI – Bank of Baroda has made a provision of INR 4 billion for the smooth adoption of the Reserve Bank of India's expected credit loss norms, its Managing Director and Chief Executive Officer Debadatta Chand said on Friday. But the provision may not be adequate and the bank may need more funds to adopt the new norms, Chand said at a post-earnings conference call with analysts. 

The RBI's draft norms on the expected credit loss framework, which will take effect from April 2027, mandate banks to set aside more funds for potential bad loans. It also requires banks to classify non-performing financial assets into three categories based on the period for which the asset has remained non-performing and the "realisability of the dues", while continuing to apply existing rules for classifying non-performing assets.

On the business, Chand said the bank is focused on deleveraging bulk deposits to support margins. "So our focus continues to be on the low-cost deposit and that is what we believe strongly. And the focus will continue to slightly de-leverage on the bulk deposit and we have been doing that for the last two and a half years."

The state-owned bank's net profit fell by over 8% on year to INR 48.09 billion in the September quarter. Sequentially, the net profit declined by nearly 6%. However, the bank's net profit exceeded analysts' consensus estimate of INR 41.87 billion. Friday, shares of the lender ended at INR 278.40 on the National Stock Exchange, up 2.1% over Thursday. The public sector bank released its results post-market hours.  End

Edited by Saji George Titus

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