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Bank of Baroda Q2FY25 Net Profit Up 23.2%, GNPA Improves to 2.50%

Bank of Baroda reported a standalone Net Profit of INR 5,238 crore in Q2FY25 as against a profit of INR 4,253 crore in Q2FY24 up by 23.2% YoY. Net Profit for H1FY25 stands at INR 9,696 crore (+16.5% YoY) as against INR 8,323 crore in H1FY24.

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Key Highlights

  • Bank of Baroda (BOB) quarterly Net profit higher by 23.2% YoY at INR 5,238 crore in Q2FY25. Net Profit for H1FY25 grew by 16.5% to INR 9,696 crore.

  • BOB has consistently delivered Return on Assets (ROA) of more than 1%, ROA for Q2FY25 stands at 1.30% and for H1FY25 at 1.20%.

  • Return on Equity (ROE) stands at 19.22% for Q2FY25 and 17.79% for H1FY25.

  • The growth in profitability was supported by healthy Operating Income growth of 12% YoY in Q2FY25.

  • Operating income growth was augmented by 24.2% YoY growth in Non-Interest Income in Q2FY25.

  • Non-Interest Income growth in Q2FY25 was driven by growth in Trading Gains (+86.6%) and Recovery from TWO (~2x)

  • Healthy growth in Income during the quarter coupled with subdued increase in Opex (+4.9%) has resulted in strong Operating profit growth of 18.2% YoY for Q2FY25. 

  • Cost to Income ratio of the Bank has reduced by 294 bps YoY to 43.60% for Q2FY25. 

  • Asset quality has significantly improved with GNPA at 2.50% for the quarter, a decline of 82 bps YoY. NNPA has also reduced by 16 bps YoY to 0.60%. 

  • BOB’s balance sheet remained robust with healthy Provision Coverage Ratio (PCR) of 93.61% with TWO & at 76.31% without TWO. 

  • Credit cost remains below 1% at 0.65% for Q2FY25 and 0.55% for H1FY25.

  • BOB’s Global Advances registered a strong YoY growth of 11.6% in Q2FY25 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 19.9%, driven by growth in high focus areas such as Auto Loan (22.9%), Home Loan (16.2%), Mortgage Loan (13.2%), Education Loan (17.2%). 

Profitability

  • BOB reported a standalone Net Profit of INR 5,238 crore in Q2FY25 as against a profit of INR 4,253 crore in Q2FY24 up by 23.2% YoY. Net Profit for H1FY25 stands at INR 9,696 crore (+16.5% YoY) as against INR 8,323 crore in H1FY24.

  • Net Interest Income (NII) grew by 7.3% YoY to INR 11,622 crore in Q2FY25. NII for H1FY25 registered a growth of 6.4% and stands at INR 23,222 crore.

  • Non-Interest Income grew to INR 5,181 crore in Q2FY25 as against INR 4,171 crore in Q2FY24 registering a YoY growth of 24.2%. Non-Interest Income for H1FY25 stands at INR 7,669 crore. 

  • Global NIM stands at 3.10% in Q2FY25 as against 3.07% in Q2FY24. NIM for H1FY25 stands at 3.14%. 

  • Yield on Advances increased to 8.48% in Q2FY25 as against 8.43% in Q2FY24.  

  • Cost of Deposits increased to 5.12% in Q2FY25 as against 4.92% in Q2FY24.

  • Operating Income for Q2FY25 stands at INR 16,803 crore, increase of 12% YoY. Operating Income for H1FY25 grew by 5.4% to INR 30,891 crore.

  • Operating Profit for Q2FY25 stands at INR 9,477 crore, increase of 18.2% on a YoY basis. Operating Profit for H1FY25 increased by 5.0% to INR 16,638 crore. 

  • Return on Assets (annualised) improved to 1.30% in Q2FY25 from 1.14% in Q2FY24. Return on Assets for H1FY25 stands at 1.20%.

  • Return on Equity (annualised) for Q2FY25 stands at 19.22% and at 17.79% for H1FY25.

  • For the consolidated entity, Net Profit stood at INR 5,355 crore in Q2FY25 as against INR 4,394 crore in Q2FY24.

Asset Quality

  • The Gross NPA of the Bank reduced by 15.9% YoY to INR 28,551 crore in Q2FY25 and Gross NPA Ratio improved to 2.50% in Q2FY25 from 3.32% in Q2FY24.

  • The Net NPA Ratio of the Bank stands at 0.60% in Q2FY25 as compared with 0.76% in Q2FY24.

  • The Provision Coverage Ratio of the Bank stood at 93.61% including TWO and 76.31% excluding TWO in Q2FY25.

  • Slippage ratio reduced to 1.07% for Q2FY25 as against 1.81% for Q2FY24. Slippage ratio also reduced to 0.90% for H1FY25 as against 1.28% in H1FY24. 

  • Credit cost remains below 1% and stands at 0.65% for Q2FY25 and at 0.55% for H1FY25.

Capital Adequacy

  • CRAR of the Bank stands at 16.26% in Sep’24. Tier-I stood at 14.18% (CET-1 at 12.67%, AT1 at 1.51%) and Tier-II stood at 2.08% as of Sep’24. 

  • The CRAR and CET-1 of consolidated entity stands at 16.67% and 13.17% respectively

  • The Liquidity Coverage Ratio (LCR) consolidated stands at 123.7%(approx.)

Business Performance

  • Global Advances of the Bank increased to INR 11,43,039 crore, +11.6% YoY.

  • Domestic Advances of the Bank increased to INR 9,38,883 crore, +12.5% YoY. 

  • Global Deposits increased by 9.1% YoY to INR 13,63,486 crore. 

  • Domestic Deposits increased by 7.1% YoY to INR 11,50,791 crore.

  • International Deposits grew by 21.2% on a YoY basis to INR 2,12,695 crore. 

  • Organic Retail Advances grew by 19.9%, led by growth in high focus areas such as Auto Loan (22.9%), Home Loan (16.2%), Mortgage Loan (13.2%), Education Loan (17.2%) on a YoY basis.

  • Agriculture loan portfolio grew by 10.6% YoY to INR 1,44,508 crore.

  • Total Gold loan portfolio (including retail and agri.) stands at INR 54,736 crore, registering a growth of 24.7% on a YoY basis.

  • Organic MSME portfolio grew by 11.7% YoY to INR 1,26,828 crore. 

Financial result for Quarter & Half Year ended 30th September 2024

Particulars (INR crore)

Q2FY24

Q1FY25

Q2FY25

YoY(%)

H1FY24

H1FY25

YoY(%)

Interest Income

27,862

29,629

30,263

8.6

54,417

59,892

10.1

Interest Expenses

17,031

18,029

18,641

9.5

32,590

36,670

12.5

Net Interest Income (NII)

10,831

11,600

11,622

7.3

21,827

23,222

6.4

Non-Interest Income

4,171

2,487

5,181

24.2

7,493

7,669

2.3

Operating Income 

15,002

14,087

16,803

12.0

29,320

30,891

5.4

Operating Expenses

6,982

6,926

7,326

4.9

13,477

14,253

5.8

Operating Profit

8,020

7,161

9,477

18.2

15,844

16,638

5.0

Total Provisions (other than tax) and contingencies

2,161

1,011

2,336

8.1

4,106

3,346

-18.5

of which, Provision for NPA Bad Debts Written-off

2,285

1,269

1,733

-24.2

3,978

3,002

-24.5

Profit before Tax

5,859

6,150

7,141

21.9

11,737

13,292

13.2

Provision for Tax

1,606

1,692

1,903

18.5

3,414

3,596

5.3

Net Profit

4,253

4,458

5,238

23.2

8,323

9,696

16.5

Business position

Particulars (INR crore)

Sep 30 2023

Jun 30 2024

Sep 30 2024

YoY (%) 

Domestic deposits

10,74,114

11,05,460

11,50,791

7.1

Domestic CASA

4,28,320

4,49,019

4,58,425

7.0

Global deposits

12,49,647

13,06,994

13,63,486

9.1

Domestic advances

8,34,723

8,81,785

9,38,883

12.5

Of which, retail loan portfolio (Organic)

1,93,682

2,22,494

2,32,311

19.9

Global advances

10,24,501

10,71,681

11,43,039

11.6

Key Ratios 

Particulars

Q2FY24

Q1FY25

Q2FY25

NIM Global %

3.07

3.18

3.10

Return on Assets (%)

1.14

1.13

1.30

CRAR (%)

15.30

16.82

16.26

CET-1 (%)

11.57

13.08

12.67

Gross NPA (%)

3.32

2.88

2.50

Net NPA (%)

0.76

0.69

0.60

PCR (with TWO) (%)

93.16

93.32

93.61
Bank of Baroda