Bank of Baroda's Quarter Triumph Amid NIM Challenges
Bank of Baroda reported a rise in net profit despite facing declining net interest margins. The bank aims for loan growth and new branches, while focusing on asset quality and technology investments. Its gross non-performing assets ratio saw significant improvement, hitting its lowest in 13 years.
- Country:
- India
Bank of Baroda on Tuesday announced a 5.59% rise in consolidated net profit for the March quarter, reaching Rs 5,415 crore despite a drop in net interest margin (NIM).
On a standalone basis, the state-owned lender saw a 3.3% increase in net profit to Rs 5,048 crore. The net profit for FY25 showed a 10% rise, hitting Rs 17,789 crore.
Managing Director Debadatta Chand noted market forces are affecting deposit costs, suppressing NIMs, but expected improvements as fiscal policies adjust. Loan growth stood at over 12%, with core net interest income down 6.6% due to a 0.25% NIM decline.
The bank experienced a 24% increase in non-interest income, aiding profit growth. Bad debt provisions dropped by 13%, supporting a positive financial outcome.
Gross non-performing assets improved to 2.26% by March-end, marking the best ratio in 13 years.
(With inputs from agencies.)
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