Bank of Baroda (BOB) announced robust financial results for the second quarter and half-year ending September 30, 2024. The bank reported a significant 23.2 per cent year-on-year (YoY) rise in net profit for Q2FY25, reaching INR 5,238 crore, while net profit for H1FY25 increased by 16.5 per cent to INR 9,696 crore.
The bank achieved a consistent return on assets (ROA) above 1 per cent, with Q2FY25 ROA at 1.30 per cent and H1FY25 at 1.20 per cent. Return on equity (ROE) also remained strong at 19.22 per cent for Q2FY25 and 17.79 per cent for H1FY25. The profitability growth was fueled by a 12 per cent YoY rise in operating income, bolstered by a notable 24.2 per cent increase in non-interest income, driven largely by trading gains and recovery income.
BOB’s operating profit grew by 18.2 per cent YoY to INR 9,477 crore for Q2FY25, supported by a moderated 4.9 per cent increase in operating expenses. The bank’s cost-to-income ratio improved, dropping by 294 basis points (bps) to 43.60 per cent. Asset quality also strengthened, with the gross non-performing asset (NPA) ratio falling to 2.50 per cent from 3.32 per cent a year earlier, and net NPA ratio reducing to 0.60 per cent. The bank’s Provision Coverage Ratio (PCR) was robust at 93.61 per cent.
BOB’s global advances registered an 11.6 per cent YoY growth in Q2FY25, led by a 19.9 per cent increase in organic retail loans, with high-focus sectors like auto loans (22.9 per cent), home loans (16.2 per cent), mortgage loans (13.2 per cent), and education loans (17.2 per cent) contributing significantly. The bank’s global deposits grew by 9.1 per c ent YoY, with international deposits surging by 21.2 per cent.
The bank’s capital adequacy ratio (CRAR) stood at a healthy 16.26 per cent, with Tier-I at 14.18 per cent. The Liquidity Coverage Ratio (LCR) was maintained at approximately 123.7 per cent, indicating strong liquidity management.
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With steady advances in both profitability and asset quality, Bank of Baroda‘s Q2FY25 performance underscores its strategic focus on balanced growth across core lending sectors and sustainable financial metrics.
