Bank Of Baroda April-June Net Profit Up 2% On Year, Provisions Nearly Double

Bank of Baroda Ltd. reported a marginal 1.9% rise in net profit for the April–June quarter at ₹45.41 billion, ahead of market expectations. Sequentially, profit was down over 10% as provisions more than doubled to ₹19.67 billion, pressuring the bottom line. The increase in treasury income cushioned the impact.

Net interest income fell 1.4% on year to ₹114.35 billion, though it was slightly above estimates. Other income surged 88% to ₹46.75 billion, driven by treasury gains of ₹22.26 billion. Total income rose 11.4% on year to ₹358.52 billion and remained stable sequentially.

Asset quality weakened marginally. Gross NPA ratio rose 2 bps sequentially to 2.28%, and net NPA ratio also rose 2 bps to 0.60%. Provision coverage ratio slipped to 93.18%, down 11 bps from March.

Global net interest margin fell to 2.91% from 2.98% in the March quarter. Domestic NIM eased to 3.06% from 3.16%.

Loan growth remained steady. Global advances rose nearly 13% on year to ₹12.07 trillion, while deposits grew 9% to ₹14.36 trillion. Domestic loans were up 12.4% at ₹9.91 trillion, led by 17.5% rise in retail advances to ₹2.61 trillion. Home loans rose 16% to ₹1.34 trillion and personal loans rose 19% to ₹366.90 billion.

Domestic deposits were up 8.1% on year at ₹12.04 trillion. CASA ratio fell to 39.33% from 39.97% a quarter ago. Cost of deposits eased to 5.22% from 5.33% sequentially.

Slippages stood at ₹34.76 billion. The slippage ratio rose to 1.16% from 1.00% in the March quarter. Credit cost increased to 0.55% from 0.44%. Recoveries and upgrades were ₹15.60 billion, while write-offs were ₹21.16 billion.