Bank Of Baroda Q4 Business Update: Domestic Deposits Up 9%, Advances Rise Nearly 14%

Bank of Baroda on Thursday posted its quarterly business update, which showed domestic deposits rising by 9.3% year-on-year to Rs 12.42 lakh crore in the quarter ended Dec. 31, 2024.

The state-run lender's global deposits during the same period increased to Rs 14.72 lakh crore, which marked an increase of 10.25% over the year-ago period.

The bank's domestic advances during the third quarter rose 13.7% to Rs 10.21 lakh crore, as compared to the corresponding period of the last fiscal.

The domestic retail advances grew 19.38% year-on-year to Rs 2.56 lakh crore in the December 2024 quarter.

During the same period, Bank of Baroda's global advances increased 12.88% to Rs 12.3 lakh crore.

Meanwhile, Citi Research said in a note that the bank's combined advances growth was of 5% sequentially, which was higher than its estimate of 4% rise.

The domestic loan-to-deposit ratio expanded by 20 basis points sequentially to 82.2%, the brokerage said it note, while adding that the decline in reported net interest margins is likely to be "arrested at three to four basis points."

The brokerage retained its target price for the bank's stock of Rs 300, which suggests a potential upside of 29.3%.

Citi said there are two key downside risks that could impede the stock from reaching its target price. The first is asset quality issues that result in higher gross non performing assets ratio and the second being credit costs and competitive intensity leading to NIM compression.

After the quarterly business updates were posted, shares of Bank Of Baroda closed 2.27% higher at Rs 236.78 apiece on the NSE, compared to a 0.35% decline in the benchmark Nifty 50.

The lender's stock has fallen by 13.66% in the last 12 months and 1.57% year-to-date. Among the 36 analysts tracking the company, 29 have a 'buy' rating on the stock and five suggest a 'hold,' while two recommend a 'sell', according to Bloomberg data.