Mumbai, Jan 30: State-run Bank of Baroda (BoB) on Thursday reported a 5.6 per cent year-on-year (YoY) increase in its net profit for the third quarter of the financial year 2024-25 (Q3 FY25).

Key Points
1. Strong 5.6% YoY net profit growth
2. Gross NPAs decline to 2.43%
3. Retail loans expand by 19.5%
4. Robust provision coverage ratio at 93.51%

The bank's net profit stood at Rs 4,837 crore, up from Rs 4,579 crore in the same quarter last year.

The bank's net interest income (NII), which represents the difference between interest earned and interest paid, rose by 2.8 per cent YoY to Rs 11,417 crore, compared to Rs 11,101 crore in the year-ago period.

For the first nine months of the financial year (9MFY25), Bank of Baroda's net profit grew by 12.6 per cent to Rs 14,533 crore.

The bank's operating profit in Q3 FY25 stood at Rs 7,664 crore, a 9.3 per cent YoY growth, according to its stock exchange filing.

A key driver of this growth was a strong 34.1 per cent rise in non-interest income, which reached Rs 3,769 crore.

The bank's asset quality remained strong, with gross non-performing assets (NPA) falling to 2.43 per cent in Q3 FY25, down from 3.08 per cent in the same quarter last year.

The net NPA ratio declined by 11 basis points to 0.59 per cent from the year-ago period. The slippage ratio, which indicates fresh bad loans as a percentage of advances, remained under control at 0.90 per cent for the quarter.

Bank of Baroda's return on assets (ROA) stood at 1.15 per cent for Q3FY25, while return on equity (ROE) was reported at 17.01 per cent.

The cost-to-income ratio improved slightly, declining by 4 basis points to 49.53 per cent.

The provision coverage ratio (PCR), a measure of how much a bank has set aside for bad loans, remained robust at 93.51 per cent with technical write-offs and 76.03 per cent without them.

Meanwhile, credit costs, which reflect provisions for bad loans, remained below 1 per cent, standing at 0.30 per cent for the quarter.

The bank's total global advances grew by 11.8 per cent YoY, driven by a strong expansion in its retail loan book.

The retail segment witnessed a 19.5 per cent rise, with significant growth in key areas such as auto loans (21.1 per cent), home loans (16.6 per cent), mortgage loans (16.3 per cent), and education loans (16.9 per cent).