State-run Bank of Baroda (BoB) reported a 5.6 percent year-on-year (YoY) increase in its net profit for the third quarter of the financial year 2024-25 (Q3 FY25). The bank’s net profit stood at $604.62 million, up from $573.63 million in the same quarter last year.
The bank’s net interest income (NII), which represents the difference between interest earned and interest paid, rose by 2.8 percent YoY to $1.43 billion, compared to $1.39 billion in the year-ago period. For the first nine months of the financial year (9MFY25), Bank of Baroda’s net profit grew by 12.6 percent to $1.82 billion.
The bank’s operating profit in Q3 FY25 stood at $958.42 million, a 9.3 percent YoY growth, according to its stock exchange filing. A key driver of this growth was a strong 34.1 percent rise in non-interest income, which reached $471.47 million.
The bank’s asset quality remained strong, with gross non-performing assets (NPA) falling to 2.43 percent in Q3 FY25, down from 3.08 percent in the same quarter last year. The net NPA ratio declined by 11 basis points to 0.59 percent from the year-ago period. The slippage ratio, which indicates fresh bad loans as a percentage of advances, remained under control at 0.90 percent for the quarter.
Bank of Baroda’s return on assets (ROA) stood at 1.15 percent for Q3FY25, while return on equity (ROE) was reported at 17.01 percent. The cost-to-income ratio improved slightly, declining by 4 basis points to 49.53 percent. The provision coverage ratio (PCR), a measure of how much a bank has set aside for bad loans, remained robust at 93.51 percent with technical write-offs and 76.03 percent without them. Meanwhile, credit costs, which reflect provisions for bad loans, remained below 1 percent, standing at 0.30 percent for the quarter.
The bank’s total global advances grew by 11.8 percent YoY, driven by a strong expansion in its retail loan book. The retail segment witnessed a 19.5 percent rise, with significant growth in key areas such as auto loans (21.1 percent), home loans (16.6 percent), mortgage loans (16.3 percent), and education loans (16.9 percent).
