November 06, 2024 09:41 (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Union Minister HD Kumaraswamy booked for threatening cop probing into mining case | Supreme Court upholds validity of Uttar Pradesh Madrasa Education Act | Not all private properties are community resources that govt can take over: Supreme Court | Pakistan's Lahore has become world's most polluted city with an AQI of 1900 on Sunday | Indian Army 'successfully completes' patrolling to a key point in Ladakh's Depsang region
Bank of Baroda Q2 net profit rises 23% YoY to Rs 5,238 cr on strong NII, improved asset quality
BOB,BankofBaroda,Q2FY25

Bank of Baroda Q2 net profit rises 23% YoY to Rs 5,238 cr on strong NII, improved asset quality

| @indiablooms | 25 Oct 2024, 10:52 pm

Mumbai: Bank of Baroda (BoB) reported a 23.2% year-on-year (YoY) increase in net profit for the second quarter of FY2024-25, reaching Rs 5,238 crore, driven by higher non-interest income and reduced provisions for stressed loans, media reports said.

Sequentially, BoB’s net profit rose by 17.5% from Rs 4,458 crore in Q1FY25. On Friday, the bank's stock closed 2.26% lower at Rs 239.5 on the BSE, reported Business Standard.

Net interest income (NII) rose by 7.33% YoY to Rs 11,622 crore in Q2FY25, up from Rs 10,831 crore a year prior.

The bank’s net interest margin (NIM) improved slightly to 3.10% in Q2FY25 from 3.07% in Q2FY24 but declined by 8 basis points sequentially from 3.18% in Q1FY25.

Managing Director and CEO Debadatta Chand noted that deposit costs may have peaked, with a likelihood of easing ahead, adding that BoB maintains a NIM guidance of 3.15% ± 5 basis points for FY25.

BoB’s non-interest income increased by 24.2% YoY to Rs 5,181 crore, largely supported by recovery from written-off accounts, which more than doubled to Rs 2,525 crore from Rs 1,231 crore in Q2FY24.

Provisions for non-performing assets (NPAs) decreased by 24.2% to Rs 1,733 crore, compared to Rs 2,285 crore in the same period last year.

Asset quality improved, with gross NPAs down to 2.5% in September 2024 from 3.32% a year earlier, and net NPAs decreasing from 0.76% to 0.60% over the same period.

The provision coverage ratio (PCR), including written-off accounts, was 93.61% in September, slightly up from 93.16% in the previous year.

Total advances grew by 11.6% YoY, reaching Rs 11.43 trillion in Q2FY25, with retail advances up 19.9% YoY to Rs 2.32 trillion.

Chand projected overall credit growth between 11-13% for FY25, with retail lending expected to expand by over 20%.

BoB plans to accelerate growth in agriculture and micro, small, and medium enterprises (MSME) loans to 12-14% from the current 11-12%, while corporate lending is forecasted to grow around 10% YoY.

Deposits rose by 9.1% YoY to Rs 13.63 trillion, with the share of low-cost deposits (CASA) remaining stable at 39.84% in September 2024.

BoB’s capital adequacy ratio stood at 16.26%, including a Tier-I capital ratio of 14.18%. The bank has no plans to raise equity capital due to its strong common equity Tier-I base but has approval to raise Rs 7,500 crore through debt instruments, according to Chand.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.