Bank of Baroda (BANKBARODA) Q2 24/25 earnings summary

Executive summary

• Net profit for Q2FY25 rose 23.2% year-over-year to ₹5,238 crore, with H1FY25 net profit up 16.5% to ₹9,696 crore; operating profit increased 18.2% year-over-year to ₹9,477 crore.

• Achieved business volume of INR 25 trillion as of September 30, 2024, with robust growth in both assets and liabilities.

• Focused on retail and CASA deposits, with retail term deposit growth at 9.6% and CASA at 7%.

• Asset quality improved, with GNPA at 2.5% (down 82 bps YoY) and Net NPA at 0.6%.

• Digital initiatives and ESG commitments remain core strategic themes, with 95% of transactions done digitally.

Financial highlights

• Global advances grew 11.6% year-over-year to ₹11,43,039 crore; domestic advances up 12.5% to ₹9,38,883 crore.

• Retail advances (organic) up 19.9% YoY, led by auto loans (+22.9%), home loans (+16.2%), mortgage loans (+13.2%), and education loans (+17.2%).

• Net Interest Income (NII) for Q2FY25 at ₹11,622 crore, up 7.3% YoY; non-interest income at ₹5,181 crore, up 24.2% YoY.

• Operating profit for Q2FY25 at ₹9,477 crore, up 18.2% YoY; cost-to-income ratio improved to 43.60%.

• Net interest margin (NIM) at 3.10% (global NIM at 3.18%), within guidance, despite a 5 bps impact from regulatory changes.

Outlook and guidance

• Deposit growth guidance revised from 10-12% to 9-11%, aiming for the upper band; advances growth guidance adjusted from 12-14% to 11-13%.

• NIM guidance maintained at 3.15% ±5 bps; credit cost below 0.75%; slippage ratio 1-1.25%; ROA above 1%.

• Collection efficiency (excluding agriculture) stood at 98.5% as of Sep 2024.

• Expect higher growth in Q3 and Q4 for both deposits and advances.

• Bank continues to focus on digital transformation, sustainability, and expanding retail and MSME lending.