Bank of Baroda Q4 Results : Bank of Baroda reported its Q4 FY2025 results on May 6, with key metrics missing analyst expectations, leading to a 10% drop in the stock price, which closed at ₹224.21. The decline erased nearly ₹10,000 crore in market capitalization for the public sector bank.
Key Financial Highlights:
- Net Profit: ₹5,048 crore (up 3.2% YoY) – beat analyst estimate of ₹4,801.7 crore
- Net Interest Income (NII): ₹11,019 crore (down 6.6% YoY) – missed CNBC-TV18 estimate of ₹11,678 crore
- Other Income: ₹5,210 crore (up 24% YoY)
- Net Interest Margin (NIM):
- FY25: 3.02% (down from 3.18% in FY24)
- Q4: 3.27% (up from 2.86% YoY) – but lowest in 14 quarters
Asset Quality and Provisions:
- Gross NPA: 2.26% (vs. 2.43% in Q3)
- Net NPA: 0.58% (vs. 0.59% in Q3)
- Provisions: ₹1,552 crore (up from ₹1,082 crore in Q3)
- Gross Slippages: ₹3,159 crore (up from ₹2,915 crore in Q3)
- Write-offs: ₹1,662 crore (up from ₹1,167 crore in Q3)
Market Reaction:
Despite reporting a net profit beat, the miss on NII and higher slippages weighed heavily on investor sentiment. The stock tanked 10%, as concerns rose about weak core income growth and rising stress in asset quality.
Conclusion:
Bank of Baroda’s Q4 FY25 results revealed weak core income and increased asset quality stress, triggering a sharp market sell-off. While net profit remained steady, the decline in NII and rising provisions have raised red flags for investors.
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