Bank of Baroda on Tuesday reported a 3.3% year-on-year rise in its net profit to Rs 5,048 crore for the fourth quarter of the previous financial year, hit by a decline in net interest income. Analysts polled by Bloomberg had estimated the bank to post a Rs 4,723-crore net profit in Q4FY25.
Shares tumbled nearly 11% as March quarter numbers failed to cheer investors. The stock slumped 10.27% to settle at Rs 223.65 on the BSE. On the NSE, it tanked 10.90% to Rs 221.95.
The board of directors has approved a final dividend of Rs 8.35 per share. The bank has set June 6 as the record date for the purpose of dividend payment.
Net interest income, the difference between interest earned and paid, rose 6.6% to Rs 11,020 crore, compared with Rs 11,793 crore in the year-ago period. Non-interest income surged 24% to Rs 5,210 crore. The domestic net interest margin shrunk to 3.02% as on March 2025, from 3.45% as on March 2024.
“Margins have been under pressure due to competitive interest rates on deposits. However, the improvement in liquidity and cut in the policy repo rate will provide a conducive environment for margins. Pressure will be there in Q1 and Q2, and it will come down in the last two quarters. The NIM will be in the range of 3%,” said Debadatta Chand, managing director & CEO, addressing the post-earnings press conference.
Non-interest income jumped 24% to Rs 5,210 crore, from Rs 4,191 crore in the same quarter previous year. Domestic gross advances grew 13.7% to Rs 10.2 lakh crore while retail advances rose 19%.
Domestic deposits increased 9.3% to Rs 12.42 lakh crore while international deposits climbed 16% to Rs 2.29 lakh crore.
The asset quality improved as the gross non-performing assets ratio fell to 2.26% in the March quarter, from 2.92% in the year-ago period. The net NPA declined to 0.5%, compared to 0.68% at the end of March 2024.