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Bank of Baroda Q3FY25 Net Profit Rises 5.6% to INR 4,837 Crore

Bank of Baroda 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.

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Bank of Baroda
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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 Loan (21.1%), Home Loan (16.6%), Mortgage Loan (16.3%), Education Loan (16.9%) on a 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.

Financial results for Quarter and 9 months ended 31st December 2024

Particulars (INR crore)

Q3FY24

Q2FY25

Q3FY25

YoY(%)

9MFY24

9MFY25

YoY(%)

Interest Income

28,605

30,263

30,908

8.0

83,023

90,800

9.4

Interest Expenses

17,504

18,641

19,491

11.3

50,094

56,161

12.1

Net Interest Income (NII)

11,101

11,622

11,417

2.8

32,929

34,639

5.2

Non-Interest Income

2,810

5,181

3,769

34.1

10,304

11,438

11.0

Operating Income

13,912

16,803

15,186

9.2

43,233

46,076

6.6

Operating Expenses

6,897

7,326

7,522

9.1

20,373

21,774

6.9

Operating Profit

7,015

9,477

7,664

9.3

22,859

24,303

6.3

Total Provisions (other than tax) and contingencies

666

2,336

1,082

62.5

4,774

4,429

-7.2

of which, Provision for NPA Bad Debts Written-off

1,007

1,733

871

-13.5

4,986

3,874

-22.3

Profit before Tax

6,349

7,141

6,582

3.7

18,085

19,873

9.9

Provision for Tax

1,769

1,903

1,745

-1.4

5,183

5,340

3.0

Net Profit

4,579

5,238

4,837

5.6

12,902

14,533

12.6

Business position

Particulars (INR crore)

Dec 31 2023

Sep 30 2024

Dec 31 2024

YoY (%)

Domestic deposits

10,67,371

11,50,791

11,65,874

9.2

Domestic CASA

4,34,337

4,58,425

4,62,617

6.5

Global deposits

12,45,300

13,63,486

13,92,461

11.8

Domestic advances

8,62,086

9,38,883

9,64,869

11.9

Of which, retail loan portfolio (Organic)

2,03,627

2,32,311

2,43,360

19.5

Global advances

10,49,327

11,43,039

11,73,034

11.8

Key Ratios

Particulars

Q3FY24

Q2FY25

Q3FY25

NIM Global %

3.10

3.10

 2.94

Return on Assets (%)

1.20

1.30

1.15 

CRAR (%)

14.72

16.26

15.96

CET-1 (%)

11.11

12.67

12.38

Gross NPA (%)

3.08

2.50

2.43

Net NPA (%)

0.70

0.60

0.59

PCR (with TWO) (%)

93.39

93.61

 
Net Profit Bank of Baroda