| Key Highlights
· Bank of Baroda (BOB) quarterly Net profit higher by 23.2% YoY at INR 5,238 crore in Q2FY25. Net Profit for H1FY25 grew by 16.5% to INR 9,696 crore. · BOB has consistently delivered Return on Assets (ROA) of more than 1%, ROA for Q2FY25 stands at 1.30% and for H1FY25 at 1.20%. · Return on Equity (ROE) stands at 19.22% for Q2FY25 and 17.79% for H1FY25. · The growth in profitability was supported by healthy Operating Income growth of 12% YoY in Q2FY25. · Operating income growth was augmented by 24.2% YoY growth in Non-Interest Income in Q2FY25. · Non-Interest Income growth in Q2FY25 was driven by growth in Trading Gains (+86.6%) and Recovery from TWO (~2x) · Healthy growth in Income during the quarter coupled with subdued increase in Opex (+4.9%) has resulted in strong Operating profit growth of 18.2% YoY for Q2FY25. · Cost to Income ratio of the Bank has reduced by 294 bps YoY to 43.60% for Q2FY25. · Asset quality has significantly improved with GNPA at 2.50% for the quarter, a decline of 82 bps YoY. NNPA has also reduced by 16 bps YoY to 0.60%. · BOB’s balance sheet remained robust with healthy Provision Coverage Ratio (PCR) of 93.61% with TWO & at 76.31% without TWO. · Credit cost remains below 1% at 0.65% for Q2FY25 and 0.55% for H1FY25. · BOB’s Global Advances registered a strong YoY growth of 11.6% in Q2FY25 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 19.9%, driven by growth in high focus areas such as Auto Loan (22.9%), Home Loan (16.2%), Mortgage Loan (13.2%), Education Loan (17.2%). |
Profitability
v BOB reported a standalone Net Profit of INR 5,238 crore in Q2FY25 as against a profit of INR 4,253 crore in Q2FY24 up by 23.2% YoY. Net Profit for H1FY25 stands at INR 9,696 crore (+16.5% YoY) as against INR 8,323 crore in H1FY24.
v Net Interest Income (NII) grew by 7.3% YoY to INR 11,622 crore in Q2FY25. NII for H1FY25 registered a growth of 6.4% and stands at INR 23,222 crore.
v Non-Interest Income grew to INR 5,181 crore in Q2FY25 as against INR 4,171 crore in Q2FY24 registering a YoY growth of 24.2%. Non-Interest Income for H1FY25 stands at INR 7,669 crore.
v Global NIM stands at 3.10% in Q2FY25 as against 3.07% in Q2FY24. NIM for H1FY25 stands at 3.14%.
v Yield on Advances increased to 8.48% in Q2FY25 as against 8.43% in Q2FY24.
v Cost of Deposits increased to 5.12% in Q2FY25 as against 4.92% in Q2FY24.
v Operating Income for Q2FY25 stands at INR 16,803 crore, increase of 12% YoY. Operating Income for H1FY25 grew by 5.4% to INR 30,891 crore.
v Operating Profit for Q2FY25 stands at INR 9,477 crore, increase of 18.2% on a YoY basis. Operating Profit for H1FY25 increased by 5.0% to INR 16,638 crore.
v Return on Assets (annualised) improved to 1.30% in Q2FY25 from 1.14% in Q2FY24. Return on Assets for H1FY25 stands at 1.20%.
v Return on Equity (annualised) for Q2FY25 stands at 19.22% and at 17.79% for H1FY25.
v For the consolidated entity, Net Profit stood at INR 5,355 crore in Q2FY25 as against INR 4,394 crore in Q2FY24.
Asset Quality
v The Gross NPA of the Bank reduced by 15.9% YoY to INR 28,551 crore in Q2FY25 and Gross NPA Ratio improved to 2.50% in Q2FY25 from 3.32% in Q2FY24.
v The Net NPA Ratio of the Bank stands at 0.60% in Q2FY25 as compared with 0.76% in Q2FY24.
v The Provision Coverage Ratio of the Bank stood at 93.61% including TWO and 76.31% excluding TWO in Q2FY25.
v Slippage ratio reduced to 1.07% for Q2FY25 as against 1.81% for Q2FY24. Slippage ratio also reduced to 0.90% for H1FY25 as against 1.28% in H1FY24.
v Credit cost remains below 1% and stands at 0.65% for Q2FY25 and at 0.55% for H1FY25.
Capital Adequacy
v CRAR of the Bank stands at 16.26% in Sep’24. Tier-I stood at 14.18% (CET-1 at 12.67%, AT1 at 1.51%) and Tier-II stood at 2.08% as of Sep’24.
v The CRAR and CET-1 of consolidated entity stands at 16.67% and 13.17% respectively
v The Liquidity Coverage Ratio (LCR) consolidated stands at 123.7%(approx.)
Business Performance
v Global Advances of the Bank increased to INR 11,43,039 crore, +11.6% YoY.
v Domestic Advances of the Bank increased to INR 9,38,883 crore, +12.5% YoY.
v Global Deposits increased by 9.1% YoY to INR 13,63,486 crore.
v Domestic Deposits increased by 7.1% YoY to INR 11,50,791 crore.
v International Deposits grew by 21.2% on a YoY basis to INR 2,12,695 crore.
v Organic Retail Advances grew by 19.9%, led by growth in high focus areas such as Auto Loan (22.9%), Home Loan (16.2%), Mortgage Loan (13.2%), Education Loan (17.2%) on a YoY basis.
v Agriculture loan portfolio grew by 10.6% YoY to INR 1,44,508 crore.
v Total Gold loan portfolio (including retail and agri.) stands at INR 54,736 crore, registering a growth of 24.7% on a YoY basis.
v Organic MSME portfolio grew by 11.7% YoY to INR 1,26,828 crore.
