Bank of Baroda Q1 Results: Net Profit Grew 9.5% To Rs 4,458 Cr; Balance Sheet Remains Robust

BoB, or Bank of Baroda, releases its financial results for the quarter that ended on June 30, 2024. The bank reported a 9.5% growth in net profit reaching a level of Rs 4,458 crore, driven by lower credit cost as against a profit of Rs 4,070 crore in Q1FY24.
While non-interest income for the quarter is Rs 2,487 crore for Q1FY25, net interest income (NII) jumped by 5.5% YoY to Rs 11,600 crore.

On a consolidated basis, the net profit stood at Rs 4,728 crore in Q1FY25 as against Rs 4,452 crore in Q1FY24.

According to the bank, its global NIM for Q1FY25 is 3.18%, and its yield on advances improved to 8.55% from 8.40% in Q1FY24. According to BoB, the cost of deposits climbed by 38 basis points year on year and was steady sequentially at 5.06%, up from 4.68% in Q1FY24. Operating profit for the first quarter of FY25 was Rs 7,161 crore while operating income for the bank was Rs 14,087 crore. BoB's annualised return on equity for Q1FY25 was 17.45%, while its return on assets (annualised) rose by 2 bps YoY to 1.13%.
In Q1FY25, the bank's gross non-performing asset (NPA) dropped by 11.4% YoY to Rs 30,873 crore, and its gross NPA ratio dropped to 2.88% from 3.51% in Q1FY24. In Q1FY25, the bank's net NPA ratio was 0.69%, compared to 0.78% in Q1FY24. In Q1FY25, the bank's provision coverage ratio was 93.32%. The slippage ratio dropped sequentially by 7 basis points to 1.05% in Q1FY25 from 1.12% in Q4FY24. For Q1FY25, credit cost is set at 0.47%.

As of June 24, the bank's CRAR was 16.82%. As of June 24, Tier-I was 14.65% (CET-1 was 13.08%, AT1 was 1.57%), and Tier-II was 2.17%. The consolidated entity's CET-1 and CRAR are 13.57% and 17.20%, respectively. As of June 30, 2024, the liquidity coverage ratio (LCR) was around 138%. The bank's domestic deposits rose by 5.3% YoY to Rs 11,05,460 crore in June 24 while its domestic advances jumped to Rs 8,81,785 crore, +8.5% YoY. As of June 30, 2024, domestic CASA deposits have increased by 6% YoY to Rs 4,49,019 crore.

Return on Assets (ROA) was 1.13% for Q1FY25, and it has continuously been over 1% for the last 8 quarters. BOB's balance sheet is still strong, with an excellent 93.32% Provision Coverage Ratio (PCR). One of the largest banks in India, Bank of Baroda has a significant domestic footprint that includes 8,266 branches, 10,419 ATMs, and Cash Recyclers that are backed by self-service channels. With 84 overseas offices spread across 17 nations, the bank has a substantial global footprint.