Q2 2025 Bank of Baroda Ltd Earnings Call Transcript
Key Points
- Bank of Baroda (BOM:532134) reported a significant increase in net profit, surpassing INR 5,000 crores for the first time, with a YoY growth of 23.2%.
- The bank's global advances grew by 11.6%, with domestic advances increasing by 12.5%, indicating strong growth in its core markets.
- Asset quality improved, with gross NPA reducing from 3.32% to 2.5% and net NPA decreasing from 0.76% to 0.60%.
- The bank maintained a strong capital position with a capital adequacy ratio of 16.26% and a provision coverage ratio of 93.61%.
- Bank of Baroda (BOM:532134) achieved a return on assets of 1.30% for the quarter, maintaining a consistent performance above 1% for nine consecutive quarters.
- The cost of deposits increased to 5.12% from 5.06%, impacting the net interest margin, which slightly decreased to 3.10%.
- The bank revised its deposit growth guidance from 10%-12% to 9%-11% due to challenges in the deposit market.
- There was a reduction in the yield on advances from 8.55% in Q1 to 8.48% in Q2, partly due to changes in guidelines affecting interest income.
- The bank's international book growth was moderated to 7.6%, impacting the overall global book growth.
- Despite strong recovery efforts, the bank faced elevated provisioning, including INR 230 crores in floating provisions, affecting overall profitability.
Good afternoon, everyone, and welcome to the Analyst Meet for Bank of Baroda's financial results for the quarter ended September 30, 2024. Thank you all for joining us. We have with us today are MD and CEO, Debadatta Chand, and he's joined by the bank's Executive Directors and our CFO. We will start with a short presentation. We will then have brief opening remarks by Mr. Chan, after which, we will have the Q&A session.
And sir, over to you.
Sure. Good evening, friends. Just to introduce the management team. I'm D. Chand, MD, CEO of the bank. I have been interacting with you for almost now six quarters now. With me, Mr. Lalit Tyagi, he's the Executive Director, looking after the corporate credit, International Banking and also the treasury. And with us, Mr. Sanjay Mudaliar on the duty Director, he looks up the entire IT of the entire IT infrastructure, IT of the bank, along with the retail asset book of the bank. With us again Mr. Lal Singh, he's a
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