Bank of Baroda (BoB) has announced its financial results for the second quarter of FY25, showcasing strong growth in both its topline and bottomline performance. The bank's robust numbers are driven by higher profitability, improved asset quality, and significant growth in both domestic and international advances.

Key Financial Highlights:

1. Net Profit:

   • Q2FY25: ₹5,238 crore
   • Y-o-Y Growth: 23.2% (from ₹4,253 crore in Q2FY24)

2. Net Interest Income (NII):

   • Q2FY25: ₹11,622 crore
   • Y-o-Y Growth: 7.3% (from ₹10,831 crore in Q2FY24)
   • H1FY25: ₹23,222 crore, a 6.4% growth from ₹21,827 crore in H1FY24

3. Non-Interest Income:

   • Q2FY25: ₹5,181 crore
   • Y-o-Y Growth: 24.2% (from ₹4,171 crore in Q2FY24)

4. Operating Profit:

   • Q2FY25: ₹9,477 crore
   • Y-o-Y Growth: 18.2% (from ₹8,020 crore in Q2FY24)

5. Gross Advances:

   • Global Advances: ₹11,43,039 crore (11.6% Y-o-Y growth)
   • Domestic Advances: ₹9,38,883 crore (12.5% Y-o-Y growth)
   • International Advances: ₹2,04,156 crore (7.6% Y-o-Y growth)

6. Deposits:

   • Global Deposits: ₹13,63,486 crore (9.1% Y-o-Y growth)
   • Domestic Deposits: ₹11,50,791 crore (7.1% Y-o-Y growth)
   • International Deposits: ₹2,12,695 crore (21.2% Y-o-Y growth)

7. Retail Advances:

   • Grew by 19.9%, reaching ₹2,32,311 crore

Asset Quality and Capital Adequacy:

• GNPA Ratio: Improved to 2.50% from 3.32% in Q2FY24
• NNPA Ratio: Decreased to 0.60% from 0.76% in Q2FY24
• Capital Adequacy Ratio: Strengthened to 16.26%, up from 15.30% in Q2FY24

Key Developments:

• BoB raised ₹5,000 crore in September through a 10-year infrastructure bond issuance, following a similar ₹5,000 crore sale in August.
• The bank's Special Mention Account (SMA) book stood at 0.47% of advances, reflecting strong asset quality.

Management Insights:

Debdatta Chand, MD & CEO of Bank of Baroda, highlighted the strong financial performance for the quarter. He noted the bank’s proactive approach to digital innovation and IT investments. While the competitive deposit market poses challenges, BoB plans to achieve deposit growth of 9-11% for FY25, slightly below its earlier guidance. The bank aims to maintain its margin guidance at 3.15% ± 5 bps, with a slippage ratio of 1-1.25% for FY25.

Looking forward, BoB expects credit costs to remain below 0.75%, with retail advances projected to grow by around 20% in FY25.

Conclusion:

Bank of Baroda’s Q2 FY25 results reflect strong financial performance, with growth across key metrics like net profit, interest income, and advances. The improvement in asset quality and strategic focus on innovation and digital infrastructure positions the bank for continued growth in the upcoming quarters.