Bank of Baroda Q1 net profit grows 9.5% to ₹4,458 crore
The Hindu
Bank of Baroda's Q1FY25 results show strong growth in net profit, NII, asset quality improvement, and robust retail loan book.
Bank of Baroda reported that its first-quarter standalone net profit grew 9.5% to ₹4,458 crore over the year-ago period, driven by lower credit cost.
The bank’s Net Interest Income (NII) grew 5% year-on-year (YoY) to ₹11,600 crore, the bank said in a filing. The Net Interest Margin (NIM) stood at 3.18% in Q1FY25, it added.
“We reported good net profit in the quarter. The focus in the quarter was on the liability management side. We protected the margins through liability management and we had control on the cost of deposits [sequentially],” said Debadatta Chand, MD & CEO, Bank of Baroda over a conference call.
The Return on Assets (ROA) during the quarter ended June 30, 2024, remained consistently above 1% for 8 quarters and stood at 1.13% for Q1FY25, he added.
The bank said it had witnessed an improvement in its asset quality with the reduction in GNPA by 63 bps YoY to 2.88% from 3.51%. The Gross NAP reduced by 11.4% YoY to ₹39,873 crore.
The bank’s Net NPA reduced by 9 bps YoY to 0.69% as against 0.78%.
The bank’s cost of deposits during the quarter increased by 38 bps to 5.06% as against 4.68% YoY.