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Bank of Baroda's stock tanks 11 pc over weak Q4 results, NII down 6.6 pc

IANS May 6, 2025 478 views

Bank of Baroda reported a modest 3.3% net profit increase in Q4, failing to impress investors. The bank's stock tumbled 11% following weak financial results, with net interest income declining 6.6%. Despite challenges, the bank showed improvement in non-performing asset ratios and maintained deposit growth. The board recommended a substantial 418% dividend, signaling underlying financial stability.

"Our financial performance reflects challenging market conditions" - Bank of Baroda Management"
Bank of Baroda's stock tanks 11 pc over weak Q4 results, NII down 6.6 pc
New Delhi, May 6: Bank of Baroda's shares fell sharply by 10.91 per cent on Tuesday after the public sector bank reported weak financial results for the March quarter (Q4 FY25).

Key Points

1

Bank's net profit marginally rises at 3.3%

2

Net interest income drops 6.6% quarter-on-quarter

3

Gross NPA ratio improves to 2.26%

4

Domestic advances grow 13.7%

Bank of Baroda reported 3.3 per cent year-on-year increase in net profit at Rs 5,048 crore in Q4, from Rs 4,886 crore in the previous quarter (Q3).

The muted increase in Bank of Baroda Q4 net profit was on the back of higher provisions and a weak net interest income (NII).

It reported net interest income (NII) at Rs 11,020 crore in Q4 FY25, down 6.6 per cent from Rs 11,793 crore reported in the year-ago period.

NII was weak even on a quarterly basis as it declined from Rs 11,417 crore seen in Q3 FY25.

The bank's domestic net interest margin (NIM) dropped to 3.02 per cent from 3.11 per cent on a quarterly basis. The operating profit was flat at Rs 8,132 crore compared to Rs 8,106 crore reported in Q4 FY24.

The gross NPA of the bank reduced by 12.6 per cent YoY to Rs 27,835 crore in FY25 and gross NPA Ratio improved to 2.26 per cent in FY25 from 2.92 per cent in FY24.

The net NPA ratio of the bank stood at 0.58 per cent in FY25 as compared with 0.68 per cent in FY24.

At the end of March 2025, Bank of Baroda had total deposits worth Rs 14.72 trillion, up 10.3 per cent YoY and 4.9 per cent QoQ.

Total advances stood at Rs 12.30 trillion, including global advances, up 12.8 per cent YoY and 4.9 per cent QoQ.

The board has recommended to declare a dividend of 418 per cent, subject to requisite approvals.

BOB's global advances registered a growth of 12.8 per cent YoY and domestic advances grew by 13.7 per cent in FY25 led by robust retail loan book growth.

Reader Comments

R
Rahul K.
Disappointing results from Bank of Baroda. The 11% stock drop shows investor sentiment clearly. While NPAs have improved, the declining NII and NIM are worrying signs. Hope the management has a solid turnaround plan. 🤔
P
Priya M.
The 418% dividend recommendation is surprising given the weak performance. Shouldn't they focus on strengthening the balance sheet first? As a long-term investor, I'd prefer better fundamentals over high dividends.
A
Amit S.
Retail loan growth looks promising at 13.7%! That's where the future is. Maybe BOB should focus more on retail and SME segments rather than corporate loans which often lead to NPAs. #BankingSector
S
Sunita R.
As a customer, I'm more concerned about service quality than quarterly results. BOB needs to improve their digital banking experience - their app still crashes frequently! Better tech = better business.
V
Vikram J.
The stock fall seems overdone to me. Look at the positives - NPA ratios improving, deposits growing at 10%+. This might be a good buying opportunity for long-term investors. Market often overreacts to short-term numbers.
N
Neha P.
Public sector banks need to become more efficient. Compare these results with private banks - the difference in profitability is stark. Maybe it's time for more reforms in PSBs. The government should consider reducing stake further.

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Tags:
Bank of Baroda Q4 Financial Results Banking Sector Stock Market Indian Banks
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