25th October, 2024 Mumbai
- Bank of Baroda (BOB) quarterly Net profit higher by 23.2% YoY at INR 5,238 crore in Q2FY25. Net Profit for H1FY25 grew by 16.5% to INR 9,696 crore.
- BOB has consistently delivered Return on Assets (ROA) of more than 1%, ROA for Q2FY25 stands at 1.30% and for H1FY25 at 1.20%.
- Return on Equity (ROE) stands at 19.22% for Q2FY25 and 17.79% for H1FY25.
- The growth in profitability was supported by healthy Operating Income growth of 12% YoY in Q2FY25.
- Operating income growth was augmented by 24.2% YoY growth in Non-Interest Income in Q2FY25.
- Non-Interest Income growth in Q2FY25 was driven by growth in Trading Gains (+86.6%) and Recovery from TWO (~2x)
- Healthy growth in Income during the quarter coupled with subdued increase in Opex (+4.9%) has resulted in strong Operating profit growth of 18.2% YoY for Q2FY25.
- Cost to Income ratio of the Bank has reduced by 294 bps YoY to 43.60% for Q2FY25.
- Asset quality has significantly improved with GNPA at 2.50% for the quarter, a decline of 82 bps YoY. NNPA has also reduced by 16 bps YoY to 0.60%.
- BOB’s balance sheet remained robust with healthy Provision Coverage Ratio (PCR) of 93.61% with TWO & at 76.31% without TWO.
- Credit cost remains below 1% at 0.65% for Q2FY25 and 0.55% for H1FY25.
- BOB’s Global Advances registered a strong YoY growth of 11.6% in Q2FY25 led by robust retail loan book growth. Bank’s organic Retail Advances grew by 19.9%, driven by growth in high focus areas such as Auto Loan (22.9%), Home Loan (16.2%), Mortgage Loan (13.2%), Education Loan (17.2%). (17.2%).
