Bank of Baroda (BANKBARODA) Q1 24/25 earnings summary

Executive summary

• Net profit for Q1FY25 rose 9.5% year-over-year to ₹4,458 crore, with net interest income up 5.5% to ₹11,600 crore and return on assets at 1.13%.

• Advances grew 8.1% YoY to ₹10,71,681 crore, with domestic advances up 8.5% and retail advances leading at 20.9% growth; corporate advances were muted at 2.5%.

• Deposits increased 8.9% YoY to ₹13,06,994 crore, with CASA ratio at 40.62%.

• Asset quality improved: gross NPA fell to 2.88% and net NPA to 0.69%; provision coverage ratio at 93.32%.

• Capital adequacy ratio strengthened to 16.82% as of June 2024.

Financial highlights

• Net interest margin (global) at 3.18%; yield on advances improved to 8.55%; cost of deposits stable at 5.06%.

• Operating profit for Q1FY25 was ₹7,161 crore; cost-to-income ratio at 49.17%.

• Non-interest income dropped 25.1% YoY, mainly due to lower treasury income and new RBI valuation norms.

• Credit cost improved to 0.47% from 0.70% YoY; slippage ratio at 1.05%.

• Return on equity at 17.45%; return on assets at 1.13%.

Outlook and guidance

• Guidance for FY25: deposit growth 10%-12%, advances growth 12%-14%.

• Margin guidance maintained at 3.15% ± 5 bps; credit cost guidance improved to below 0.75%.

• Targeting INR 10,000 crore in recoveries for the year.

• GNPA trending towards 2.5% as asset quality remains stable.

• Five-year CAGR growth target of 13.5%, aiming to double business by March 2029.