Bank of Baroda July-September Profit Drops 8% as Wholesale and Investment Income Weaken

Bank of Baroda reported an 8% on-year decline in net profit for the September quarter, dragged by lower income from wholesale banking and investments, though lower provisions limited the fall.

Net profit fell to ₹48.09 billion in July–September, down nearly 6% from the previous quarter. Total income slipped 1% on year to ₹350.26 billion, with wholesale banking income more than halving to ₹21 billion and investment income down 2% to ₹63.76 billion.

Provisions and contingencies dropped 47% on year to ₹12.32 billion. Fresh slippages fell to ₹26.69 billion from ₹34.76 billion in the June quarter, while write-offs eased to ₹11.35 billion from ₹21.16 billion. Recoveries and upgrades rose to ₹18.97 billion from ₹15.60 billion.

The bank’s gross non-performing assets ratio fell to 2.16% as of Sept 30 from 2.50% a year earlier, while the net NPA ratio stood at 0.57%. The slippage ratio was 0.91%, up slightly on year but lower than the previous quarter.

Operating expenses rose 8% on year to ₹78.93 billion, with other operating costs up 17% to ₹38.32 billion. Employee costs were broadly steady at ₹40.61 billion but down 6% sequentially.

Other income declined 32% on year and 25% on quarter to ₹35.15 billion, hurt by a sharp drop in trading income to ₹10.86 billion from ₹22.26 billion in the June quarter. Fee income remained stable at ₹17.90 billion.

Net interest income rose 2.7% on year to ₹119.54 billion, aided by an improvement in margins. The global net interest margin increased to 2.96% from 2.91% in the previous quarter, while domestic NIM was up 4 bps to 3.10%.

Global advances grew 12% on year to ₹12.79 trillion, led by a 17.6% rise in retail loans to ₹2.73 trillion and 14% growth in SME loans to ₹1.44 trillion. Corporate advances rose 3% to ₹4.01 trillion. Deposits increased 9.3% on year to ₹15.00 trillion, with term deposits up 12% to ₹7.83 trillion. The CASA ratio fell to 38.42% from 39.33% in the June quarter.

The Basel III capital adequacy ratio stood at 16.54% as of September 30, compared with 17.61% a quarter earlier. The cost of deposits eased to 4.91% from 5.05% in the previous quarter.

In the first half of 2024–25, the bank’s net profit declined 3.6% on year to ₹93.51 billion.