News | Bank of Baroda Q1 Profit Rises 2% Despite Dip in Core Interest Income

Bank of Baroda Q1 Profit Rises 2% Despite Dip in Core Interest Income

News

26 July 2025

1 min read

UBS Forums

275

Bank of Baroda reported a 2% year-on-year increase in net profit for the quarter ended June 2025, with standalone PAT standing at ₹4,541 crore, up from ₹4,458 crore a year earlier. The modest gain came despite a 1.4% drop in net interest income (NII), which declined to ₹11,435 crore amid reclassification of interest on income tax refunds and margin pressure in a rising cost environment. The bank’s operating performance remained robust, with operating profit growing 15% year-on-year to ₹8,236 crore, driven by a sharp rise in non-interest income, which surged nearly 88%. While the net interest margin (NIM) contracted to 2.91% from 3.18%, overall earnings were buoyed by steady business growth.

Domestic advances grew 12.4%, with retail lending surging 17%, while global deposits expanded by 9.1% to ₹14.36 lakh crore. Asset quality also improved, as the gross non-performing asset (GNPA) ratio fell to 2.28% from 2.88% a year earlier, and net NPAs reduced to 0.60%, reflecting better recoveries and containment of slippages. The bank’s capital adequacy ratio remained strong at 17.61%, giving it a solid buffer to support future growth. Despite challenges on the interest income front, BoB’s management struck a confident tone, citing improved business traction and a likely pickup in corporate lending over the coming quarters.