Bank of Baroda (BOB) reported a 23.2 per cent year-on-year (YoY) increase in standalone net profit for Q2 FY25, reaching Rs. 5,238 crore, up from Rs. 4,253 crore in Q2 FY24. The bank’s half-year profit for FY25 rose by 16.5 per cent to Rs. 9,696 crore, supported by a 12 per cent YoY increase in operating income. Return on Assets (ROA) remained strong at 1.30 per cent in Q2 FY25, while Return on Equity (ROE) reached 19.22 per cent.
Non-Interest and Operating Income Boost
A significant driver of this performance was the 24.2 per cent YoY growth in non-interest income, reaching Rs. 5,181 crore, spurred by trading gains and recoveries. The bank’s operating profit surged by 18.2 per cent YoY, reaching Rs. 9,477 crore for Q2 FY25. BOB also improved its cost-to-income ratio to 43.6 per cent, showcasing enhanced operational efficiency.
Strengthened Asset Quality
BOB’s asset quality showed improvement, with the Gross NPA ratio falling to 2.50 per cent in Q2 FY25 from 3.32 per cent a year earlier, and Net NPA declining to 0.60 per cent. The bank maintained a robust Provision Coverage Ratio (PCR) of 93.61 per cent, reflecting its strengthened financial stability.
Loan Growth Across Key Segments
Global advances rose by 11.6 per cent YoY, driven by a 19.9 per cent increase in retail loans, including growth in high-focus areas such as auto loans (22.9 per cent) and home loans (16.2 per cent). Domestic deposits grew by 7.1 per cent YoY, underscoring a healthy balance sheet expansion.
Capital Adequacy and Liquidity
The bank’s capital adequacy ratio stood at 16.26 per cent in September 2024, with a consolidated CET-1 ratio of 12.67 per cent. This reflects BOB’s strong capital position and commitment to sustainable growth.
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