Bank of Baroda (BoB) on Wednesday reported a 10% year-on-year (YoY) rise in its net profit to Rs 4,458 crore for the quarter ended June, led by a stable asset quality. The profit after tax (PAT) was largely in line with the Bloomberg consensus estimate of Rs 4,547 crore.
The gross and net non-performing asset ratios improved by 63 bps and 9 bps YoY to 2.88% and 0.69%, respectively. Credit cost stood at 0.47% in Q1FY25, against 0.70% a year ago, and the bank has guided for below 0.5% credit cost of the full fiscal.
Net interest income grew 6% YoY to Rs 11,600 crore while the net interest margin was lower 9 bps at 3.18%. Non-interest income moderated 25% to Rs 2,487 crore in the reporting quarter, largely due to lower treasury income.
The liquidity coverage ratio (LCR) stood at 138% in Q1 and will likely moderate by 12%-15% due to the Reserve Bank of India’s new draft guidelines on the same, managing director and CEO Debadatta Chand said.
The board has approved raising Rs 7,500 crore via debt, Chand said, adding that the lender may raise the full amount depending on right market conditions. The capital adequacy ratio was at 16.82%, of which common equity tier-I capital ratio formed 13.08%. The bank aims to list its subsidiary IndiaFirst Life Insurance in the next 12-18 months, and is also in the process of stake sale in subsidiary Nainital Bank, Chand said.
BoB’s overall advances grew 8% YoY to Rs 10.71 trillion in Q1 while overall deposits rose 9% YoY to Rs 13.06 trillion. The lender is targeting a 10%-12% growth in overall deposits in the current fiscal and a 12%-14% increase in advances.