Bank of Baroda Q3FY25 net profit grows 5.6% YoY to Rs 4,837 cr

The bank's performance was bolstered by robust asset quality and a significant increase in non-interest income.

The bank’s 9MFY25 net profit grew 12.5% to Rs 14,533 crore.

BoB's asset quality remains strong, with the Gross Non-Performing Assets (NPA) ratio standing at 2.43% for Q3FY25, a reduction of 65 basis points (bps) from the previous year.

The Net NPA ratio also remained low at 0.59%, marking a decline of 11 bps YoY.

The slippage ratio stood at 0.90% for Q3FY25 and 0.81% for the first nine months of FY25, indicating contained credit risk.

Credit costs were contained below 1%, registering at 0.30% for Q3FY25 and 0.47% for 9MFY25.

The bank's balance sheet continues to show strength with a Provision Coverage Ratio (PCR) of 93.51%, including the TWO (Technical Write-Offs), and 76.03% without TWO.

The Return on Assets (ROA) for the quarter stood at a healthy 1.15%, while the Return on Equity (ROE) was 17.01%.

For the first nine months of FY25, ROA was 1.17%, and ROE was 17.03%.

Operating profit for Q3FY25 increased by 9.3% YoY to Rs 7,664 crore, driven by a substantial growth in non-interest income, which rose 34.1% YoY to Rs 3,769 crore.

The bank's cost-to-income ratio improved slightly, down by 4 bps YoY to 49.53% in Q3FY25.

Bank of Baroda's global advances showed an impressive 11.8% YoY growth, with retail loans seeing a strong uptick.

The bank's organic retail advances grew by 19.5%, with notable growth in areas such as Auto Loans (21.1%), Home Loans (16.6%), Mortgage Loans (16.3%), and Education Loans (16.9%).

The Capital Adequacy Ratio (CRAR) remained robust at 15.96%, ensuring the bank's strong financial health.

BoB's strong financial performance in Q3FY25 highlights its solid asset quality, robust retail loan growth, and prudent cost management.