Bank of Baroda Q1 profit up 10% at ₹4,458 crore

Bank of Baroda (BoB) reported a 10 per cent year-on-year (yoy) increase in standalone net profit at ₹4,458 crore in the first quarter (Q1FY25) despite a 25 per cent decline in non-interest income as the bottomline was supported by moderate rise in net interest income and decline in non-tax provisions.

The public sector bank had recorded a net profit of ₹4,070 crore in the year ago quarter.

MD & CEO Debadatta Chand said the bank has logged over ₹4,000 crore net profit for the sixth consecutive quarter, even as he emphasised that the bank is focused on reducing bulk deposits, growing retail (CASA) deposits and not renewing high quality finely-priced loans.

Net interest income

In the reporting quarter, net interest income (the difference between interest earned and interest expended) rose about 5 per cent yoy to ₹11,600 crore (₹10,997 crore in the year ago quarter).

Non-interest income, which includes fee income, dividend income from subsidiaries/associates, profit/(loss) on sale of investments and miscellaneous income, declined 25 per cent per cent yoy to ₹2,487 crore (₹3,322 crore).

Non-interest income declined mainly because treasury income saw a sharp 74 per cent fall to ₹295 crore (₹1,152 crore). Trading gains declined 50.5 per cent to ₹164 crore (₹331 crore) and loss of ₹76 crore (₹625 crore) due to revaluation of investments as per new RBI guidelines.

Net interest margin (NIM) declined to 3.18 per cent in Q1FY25 compared with 3.27 per cent in Q1FY24.

The gross non-performing assets (NPA) to gross advances position improved to 2.88 per cent as at June-end 2024, against 3.51 per cent as at June-end 2024. The net NPA to net advances position too improved to 0.69 per cent from 0.78 per cent.

Non-tax provisions declined 48 per cent yoy to ₹1,011 crore (₹1,946 crore). This include 25 per cent decline in provision for NPA & Bad Debts Written-off at ₹1,269 crore (₹1,693 crore), higher write-back in non-performing investment at ₹136 crore (₹11 crore). The Bank also received a provision write-back on standard advances of ₹192 crore.

Business growth

Global deposits increased by 8.9 per cent yoy to stand at ₹13,06,994 crore as on June-end 2024. Domestic deposits and international deposits rose 5.3 per cent and 34.7 per cent to ₹11,05,460 crore and ₹2,01,534 crore, respectively.

Current account, savings account (CASA) deposits improved to 40.62 per cent as at June-end 2024 against 40.33 per cent as at June-end 2023.

Global advances rose by 8.1 per cent yoy to stand at ₹10,71,681 crore. Domestic gross advances and international advances rose 8.5 per cent and 6.5 per cent to ₹8,81,785 crore and ₹1,89,896 crore, respectively.