Dimapur, October 25 (MExN): The Bank of Baroda (BoB) announced the financial results for the quarter& half year ended September 30, 2024.
The bank reported a significant 23.2% year-on-year (YoY) rise in net profit for Q2FY25, reaching INR 5,238 crore, while net profit for H1FY25 increased by 16.5% to INR 9,696 crore.
The bank achieved a consistent return on assets (ROA) above 1%, with Q2FY25 ROA at 1.30 per cent and H1FY25 at 1.20%. Return on equity (ROE) also remained strong at 19.22 per cent for Q2FY25 and 17.79% for H1FY25. The profitability growth was fueled by a 12 per cent YoY rise in operating income, bolstered by a notable 24.2% increase in non-interest income, driven largely by trading gains and recovery income.
BOB’s operating profit grew by 18.2% YoY to INR 9,477 crore for Q2FY25, supported by a moderated 4.9% increase in operating expenses. The bank’s cost-to-income ratio improved, dropping by 294 basis points (bps) to 43.60%. Asset quality also strengthened, with the gross non-performing asset (NPA) ratio falling to 2.50% from 3.32% a year earlier, and net NPA ratio reducing to 0.60%. The bank’s Provision Coverage Ratio (PCR) was robust at 93.61%.
BOB’s global advances registered an 11.6% YoY growth in Q2FY25, led by a 19.9% increase in organic retail loans, with high-focus sectors like auto loans (22.9%), home loans (16.2% t), mortgage loans (13.2%), and education loans (17.2%) contributing significantly. The bank’s global deposits grew by 9.1% YoY, with international deposits surging by 21.2%.
