Bank of Baroda's first-quarter profit rose in the first quarter of the fiscal 2024-25 on the back of lower provisions, meeting analysts' estimates.
The public sector lender's standalone net profit rose 9.5% year-on-year to Rs 4,458.1 crore in the quarter ended June 2024, according to an exchange filing on Wednesday. Analysts polled by Bloomberg estimated a profit of Rs 4,546.46.
Net interest income, or core income, for the lender increased 5.4% year-on-year to Rs 11,600.1 crore. Other income was down 25.1% year-on-year to Rs 2,487.2 crore.
Bank of Baroda Q1FY25 Results Highlights (Standalone)
Net profit up 9.5% to Rs 4,458.1 crore. (YoY)
Net interest income up 5.48% to Rs 11,600.1 crore. (YoY)
Gross NPA at 2.88% versus 2.92% (QoQ)
NNPA at 0.69% versus 0.68% (QoQ)
Asset quality for the lender stayed flat with gross non-performing asset ratio improving 4 basis points sequentially to 2.88%. Net NPA ratio, too, stayed flat at 0.69%, compared to 0.68% in the previous quarter.
Provisions for Q1 were down 48% year-on-year to Rs 1,011 crore.
Operating expenses for the bank grew 6.6% year-on-year to Rs 6,926 crore. Here, employee cost was up 6.9% year-on-year to Rs 4,014 crore and other opex was up 6.2% year-on-year to Rs 2,912 crore.
The lender's domestic deposits were up 5.3% year-on-year to Rs 11.05 lakh crore. However, domestic gross advances were up 8.5% year-on-year to Rs 8.81 lakh crore.
Cost of deposits increased 2 bps sequentially to 5.13% for the quarter ended June. However, domestic current account savings accounts ratio was down 71 bps sequentially to 40.62%.
Net interest margin, another profitability indicator, compressed 9 bps quarter-on-quarter to 3.18%, compared to 3.27% in the previous one.
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