Bank of Baroda Achieves 5.6% Net Profit Growth to Rs 4,837 Crore in December Quarter

State-owned Bank of Baroda (BoB) announced a 5.6% rise in net profit, reaching Rs 4,837 crore for the December quarter. This increase is attributed to lower interest income. In the same quarter last year, the bank's net profit was Rs 4,579 crore. The total income for the quarter rose to Rs 34,676 crore from Rs 31,416 crore in the previous year.

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Interest income saw a slight increase, reaching Rs 30,908 crore during this quarter compared to Rs 28,605 crore in the corresponding period last year. BoB's Managing Director and CEO, Debadatta Chand, noted that the moderate profit growth was due to a nearly 3% rise in Net Interest Income (NII), which was Rs 11,417 crore in Q3FY25 compared to Rs 11,101 crore a year earlier.

Asset Quality and Provisions

The bank's operating profit increased to Rs 7,664 crore from Rs 7,015 crore in the third quarter of the previous fiscal year. On the asset quality front, BoB's gross non-performing assets (NPAs) ratio improved to 2.43% from 3.08% a year ago. Similarly, net NPAs decreased to 0.59% from 0.7% at the end of the third quarter last fiscal.

However, provisions excluding tax rose to Rs 1,082 crore during this quarter from Rs 666 crore a year ago. The net interest margin (NIM) of the bank fell to 2.9% at the end of the third quarter compared to 3.10% in Q3FY24. Debadatta Chand shared that NIM is expected to be between 3% and 3.10% during the current fiscal.

Capital Adequacy and Growth Outlook

The Capital Adequacy Ratio declined to 14.72% from 15.96% at the end of the third quarter of the previous financial year. Despite this decrease, Chand stated that there is no need for fund-raising during this financial year as the current capital level is sufficient to support credit growth.

This financial performance reflects BoB's efforts in managing its asset quality and maintaining profitability amidst changing economic conditions. The bank continues to focus on sustaining growth while ensuring adequate capital reserves are maintained for future expansion opportunities.