Bank Of Baroda Financial Results For Quarter Ended 31st December 2024 : Consistent ROA, Robust Asset Quality

Leading Public Sector Bank of the country – Bank of Baroda declared its Financial Results for the Quarter ended 31st December 2024

Key Highlights

 BOB reports a growth of 12.6% in its 9MFY25 Net Profit to INR 14,533 crore
 Net Profit for Q3FY25 stands at INR 4,837 crore, growth of 5.6% YoY.
 Asset quality continues to be robust with Gross NPA below 2.5% at 2.43% for Q3FY25, reduction of 65 bps YoY.
 Net NPA ratio also remains low at 0.59%, declined by 11 bps YoY.
 Slippage ratio remains contained at 0.90% for Q3FY25 and 0.81% for 9MFY25.
 Credit costs remain below 1% due to better asset quality at 0.30% for the quarter and 0.47% for 9MFY25.
 BOB’s balance sheet remains robust with healthy Provision Coverage Ratio (PCR) of 93.51% with TWO & at 76.03% without TWO.
 Return on Assets (ROA) remains above 1% and stands at 1.15% for the quarter and 1.17% for 9MFY25.
 Return on Equity (ROE) for the quarter is 17.01% and 17.03% for 9MFY25.
 Operating profit for Q3FY25 stands at INR 7,664 crore, up by 9.3% YoY.
 Operating profit growth was supported by 34.1% YoY growth in Non-Interest Income which stands at INR 3,769 crore for Q3FY25.
 Cost to Income ratio has also reduced by 4 bps YoY to 49.53% for Q3FY25.
 BOB’s Global Advances registered a growth of 11.8% YoY in Q3FY25 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 19.5%, driven by growth in high focus
areas such as Auto Loan (21.1%), Home Loan (16.6%), Mortgage Loan (16.3%), Education Loan (16.9%).
 Capital Adequacy (CRAR) remains healthy at 15.96%.

Profitability

 BOB reported a standalone Net Profit of INR 4,837 crore in Q3FY25 as against a profit of INR 4,579 crore in Q3FY24. Net Profit for 9MFY25 stands at INR 14,533 crore (+12.6% YoY) as against INR 12,902 crore in 9MFY24.
 Net Interest Income (NII) grew by 2.8% YoY to INR 11,417 crore in Q3FY25. NII for 9MFY25 registered a growth of 5.2% and stands at INR 34,639 crore.
 Non-Interest Income for Q3FY25 grew by 34.1% YoY and stands at INR 3,769 crore. Non-Interest Income for 9MFY25 stands at INR 11,438 crore up by 11% YoY
 Global NIM stands at 2.94% in Q3FY25. Global NIM for 9MFY25 stands at 3.08%.
 Yield on Advances stands at 8.35% in Q3FY25 as against 8.51% in Q3FY24.
 Cost of Deposits increased to 5.08% in Q3FY25 as against 4.96% in Q3FY24.
 Operating Income for Q3FY25 stands at INR 15,186 crore (+9.2% YoY). Operating Income for 9MFY25 stands at INR 46,076 crore registering a growth of 6.6%.
 Operating Profit for Q3FY25 stands at INR 7,664 crore (+9.3% YoY).
 Operating Profit for 9MFY25 increased by 6.3% to INR 24,303 crore.
 Cost to Income ratio improved by 4 bps YoY and stands at 49.53% for Q3FY25. Cost to Income ratio of 9MFY25 stands at 47.26%.
 Return on Assets (RoA) (annualised) stands at to 1.15% in Q3FY25. RoA for 9MFY25 stands at 1.17%
 Return on Equity (RoE) (annualised) for Q3FY25 stands at 17.01%. RoE stands at 17.03% for 9MFY25.
 For the consolidated entity, Net Profit stood at INR 5,214 crore in Q3FY25 as against INR 4,789 crore in Q3FY24.

Asset Quality

 The Gross NPA of the Bank reduced by 11.9% YoY to INR 28,471 crore in Q3FY25 and Gross NPA Ratio improved to 2.43% in Q3FY25 from 3.08% in Q3FY24.
 The Net NPA Ratio of the Bank stands at a low of 0.59% in Q3FY25 as compared with 0.70% in Q3FY24.
 The Provision Coverage Ratio of the Bank stood at 93.51% including TWO and 76.03% excluding TWO in Q3FY25.
 Slippage ratio declined to 0.81% for 9MFY25 as against 1.06% in 9MFY24. Slippage ratio for the quarter also remains contained at 0.90% for Q3FY25 as against 0.95% in Q3FY24.
 Credit cost stands at 0.30% for Q3FY25 and 0.47% for 9MFY25.

Capital Adequacy

 CRAR of the Bank stands at 15.96% in Dec’24. Tier-I stood at 13.44% (CET-1 at 12.38%, AT1 at 1.06%) and Tier-II stood at 2.52% as of Dec’24.
 The CRAR and CET-1 of consolidated entity stands at 16.36% and 12.86% respectively
 The Liquidity Coverage Ratio (LCR) consolidated stands at 130% (approx.).

Business Performance

 Global Advances of the Bank increased to INR 11,73,034 crore, +11.8% YoY.
 Domestic Advances of the Bank increased to INR 9,64,869 crore, +11.9% YoY.
 Global Deposits increased by 11.8% YoY to INR 13,92,461 crore.
 Domestic Deposits increased by 9.2% YoY to INR 11,65,874 crore in Dec’24.
 International Deposits grew by 27.3% on a YoY basis to INR 2,26,588 crore in Dec’24.
 Organic Retail Advances grew by 19.5%, led by growth in high focus areas such as Auto 0Loan (21.1%), Home Loan (16.6%), Mortgage Loan (16.3%), Education Loan (16.9%) on 0a YoY basis.
 Agriculture loan portfolio grew by 12.5% YoY to INR 1,51,050 crore.
 Total Gold loan portfolio (including retail and agri.) stands at INR 58,172 crore, registering a growth of 29.1% on a YoY basis.
 Organic MSME portfolio grew by 13.6% YoY to INR 1,31,769 crore.
 Corporate advances registered a growth of 6.8% YoY and stands at INR 3,87,405 crore.