Bank of Baroda (BOB) has announced its financial results for the third quarter of FY25, showing consistent growth in profitability, a strong asset quality, and a healthy balance sheet. The bank reported a 5.6% YoY increase in its net profit for Q3FY25, reaching INR 4,837 crore, and a 12.6% rise in net profit for the nine months of FY25, amounting to INR 14,533 crore.
Key Highlights:
- Net Profit: BOB’s net profit for Q3FY25 increased to INR 4,837 crore, compared to INR 4,579 crore in Q3FY24. For 9MFY25, net profit saw a growth of 12.6% YoY, standing at INR 14,533 crore.
- Asset Quality: The bank’s asset quality remained robust with Gross NPAs reducing by 11.9% YoY to INR 28,471 crore. The Gross NPA ratio improved to 2.43% in Q3FY25, a decrease of 65 basis points compared to the same period last year. Net NPA ratio was also contained at 0.59%.
- Return Ratios: Bank of Baroda maintained strong return ratios with a Return on Assets (RoA) of 1.15% for Q3FY25 and 1.17% for 9MFY25. Return on Equity (RoE) for the quarter stood at 17.01% and 17.03% for the nine-month period.
Profitability and Income:
- Net Interest Income (NII): NII grew by 2.8% YoY to INR 11,417 crore for Q3FY25, with a total of INR 34,639 crore for the nine months, marking a 5.2% YoY growth.
- Non-Interest Income: Non-interest income saw significant growth, rising by 34.1% YoY to INR 3,769 crore in Q3FY25. For the nine-month period, non-interest income increased by 11% to INR 11,438 crore.
- Operating Profit: Operating profit for Q3FY25 stood at INR 7,664 crore, a 9.3% growth YoY, driven by the strong increase in non-interest income.
Asset Quality and Capital Adequacy:
- The bank’s Gross NPA ratio improved significantly from 3.08% in Q3FY24 to 2.43% in Q3FY25, and the Net NPA ratio declined to 0.59%.
- Provision Coverage Ratio (PCR): The bank’s PCR stood at an impressive 93.51% (including TWO) and 76.03% (excluding TWO) for Q3FY25.
- Slippage Ratio: The bank maintained a contained slippage ratio of 0.90% for Q3FY25 and 0.81% for 9MFY25.
- Capital Adequacy: BOB’s Capital Adequacy Ratio (CRAR) remained strong at 15.96% as of December 2024, with Tier-I capital at 13.44%.
Business Performance:
- Advances Growth: Global advances increased by 11.8% YoY to INR 11,73,034 crore, with domestic advances growing by 11.9% YoY to INR 9,64,869 crore.
- Retail and MSME Growth: Organic retail advances surged by 19.5%, with key growth areas including Auto Loans (21.1%), Home Loans (16.6%), and Education Loans (16.9%). The bank’s MSME portfolio also grew by 13.6% YoY.
- Gold Loan and Agriculture Loans: The bank’s gold loan portfolio, including both retail and agricultural segments, grew by 29.1% YoY to INR 58,172 crore. Agriculture loans saw a growth of 12.5% YoY to INR 1,51,050 crore.
Bank of Baroda continues to focus on maintaining its strong asset quality, robust capital position, and diversified business portfolio. The growth in retail loans, particularly in high-focus areas such as auto loans and home loans, reflects the bank’s strategic direction towards expanding its retail footprint. Additionally, the strong performance in agriculture and MSME lending is aligned with the bank’s commitment to supporting India’s economic growth.
The bank’s ongoing efforts to improve operational efficiency are evident from the reduction in its cost-to-income ratio, which stands at 49.53% for Q3FY25. With a healthy liquidity coverage ratio (LCR) and a solid capital base, Bank of Baroda is well-positioned to continue delivering steady performance in the coming quarters.
Bank of Baroda is one of India’s leading public sector banks with a rich history of over 100 years of service. It offers a wide range of financial products and services to individuals, businesses, and institutions, and has a significant global presence with branches in several countries.
