BoB Q1 Results: Net Profit At Rs 4,541 Cr Despite Higher Provisions, NII Drops 1.4%

On Friday, Bank of Baroda (BoB) declared its financial results for the quarter ended on 30th June 2025. Net profit for the quarter stood at Rs 4,541 crore, growing 1.9% YoY, while provisions increased sharply by 94.6% YoY to Rs 1,967. Profit before tax stood at Rs 6,270 crore.

The bank recorded net interest income (NII) of Rs 11,435 crore in Q1FY26, a 1.4% YoY fall. However, strong treasury gains and enhanced recoveries drove an 88% YoY rise in non-interest income to Rs 4,675 crore. The bank's operating profit increased by 15% year on year to Rs 8,236 crore. Better operational efficiency was shown by the cost-to-income ratio, which increased by 30 basis points to 48.87%.

Compared to 3.18% a year before, BoB's global net interest margin (NIM) dropped to 2.91%. The return on equity (RoE) was 15.05%, while the return on assets (RoA) at 1.03% stayed constant. Capital adequacy ratio (CAR) increased 17.61% YoYar by 79 basis points, while CET-1 was 12.38%.

Higher interest on advances helped to drive a 4.9% YoY increase in total interest income to Rs 31,091 crore. On the expense side, rising deposit costs caused interest costs to grow 9% YoY to Rs 19,657 crore. Operating expenses grew 13.7% YoY to Rs 7,873 crore, while operating income bumped 14.4% YoY to Rs 16,109 crore.

Both deposits and advances drove the bank's total business growth, which increased by 10.7% YoY to Rs 26.43 lakh crore.

With the net NPA ratio falling by 9 bps YoY to 0.60% and the gross NPA ratio falling by 60 bps YoY to 2.28%, asset quality significantly improved. At 93.18%, the provision coverage ratio (including technical write-offs) stayed robust. Higher fresh slippages of Rs 3,476 crore caused the slippage ratio to rise to 1.16%.

The total size of the balance sheet as of June 30, 2025, was Rs 18.40 lakh crore, up from Rs 16.50 lakh crore in June 2024. Loans and advances totaled Rs 12.15 lakh crore, while reserves and surplus rose to Rs 1.53 lakh crore.