Bank of Baroda shares plunged 11% after Q4FY25 results, marking the sharpest fall in 11 months. Despite reporting a 3.3% profit rise, fall in NII impacted sentiment. The board declared a ₹8.35 dividend per share.
The share price of Bank of Baroda tanked 11% after the bank announced its Q4 results. It witnessed the sharpest intraday fall in the last 11 months, closing below its 200-day moving average. The stock touched a three-week low on Tuesday. The board of directors also approved a dividend for its shareholders in today’s board meeting.
Bank of Baroda (BoB), a public sector lender, announced its financial results for the fourth quarter of FY25 on Tuesday, May 6, 2025. The bank posted a 3.3% year-on-year (YoY) increase in standalone net profit, reaching ₹5,048 crore, compared to ₹4,886 crore in Q4FY24.
The operating profit remained largely stable, recording a marginal YoY increase of 0.3% to ₹8,132 crore, up from ₹8,106 crore. However, net interest income (NII) showed a YoY decline of 6.6%, falling to ₹11,020 crore from ₹11,793 crore in the corresponding quarter.
On the asset quality front, BoB saw an improvement, with the gross non-performing assets (GNPA) ratio reducing by 17 basis points (bps) QoQ to 2.26% from 2.43%. Similarly, the net NPA ratio dropped 1 bps QoQ to 0.58% from 0.59%.
On QoQ basis the slippage ratio of the bank increased from 0.9% to 1% in Q4 while credit cost also jumped to 0.44% from 0.3% in Q3FY25.
The bank’s capital adequacy ratio strengthened, rising 88 bps YoY to 17.19% from 16.31%, indicating a healthier capital position.
For the full fiscal year, BoB reported a 10.1% YoY growth in net profit, reaching ₹19,581 crore as compared to ₹17,789 crore in FY24. NII for the year also improved, registering a 2.1% YoY rise to ₹45,659 crore from ₹44,722 crore.
The bank's domestic gross advances increased 13.7% YoY to ₹10,21,112 crore, while organic retail advances increased 19.4% YoY to ₹2,56,633 crore. International advances increased 8.8% YoY to ₹2,09,349 crore.
Domestic deposits by the end of Q4FY25 stood at ₹12,42,169 crore, up 9.3% YoY. On the other hand, international deposits increased 15.8% YoY to ₹2,29,866 crore.
The Board of Directors proposed a dividend of ₹8.35 per share, which shows the dividend yield of 3.71% - the highest in 10 years.
Disclaimer: The article is for informational purposes only and not investment advice.
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