Bank of Baroda Share Price in Focus as It Rises Over 4%

As of 10:50 AM, November 25, 2024, BOB share price is trading at ₹247.70, reflecting a gain of ₹11.70, or 4.96%. Year-to-date, the stock has increased by ₹14.00, representing a 5.99% gain. Over the past year, the stock has surged by ₹51.20, marking a 26.05% increase. Looking at the long-term performance, the stock has witnessed an impressive rise of ₹142.85, or 136.18%, over the past 5 years. This steady growth reflects the bank’s resilience and positive market sentiment.

The stock reached a 52-week high of ₹298.45 and a 52-week low of ₹192.70.

Q2 FY25 Earnings Highlights

Bank of Baroda (BoB) reported a net profit of ₹5,238 crore in Q2FY25, marking a 23.2% year-on-year (Y-o-Y) increase. This growth was driven by higher non-interest income and a reduction in provisions for stressed loans. Compared to the previous quarter, net profit rose by 17.5% from ₹4,458 crore in Q1FY25.

Growth in Net Interest Income (NII)
BoB’s net interest income (NII) grew by 7.33% Y-o-Y to ₹11,622 crore in Q2FY25, up from ₹10,831 crore a year ago. The net interest margin (NIM) improved slightly to 3.10% from 3.07% in Q2FY24. However, sequentially, the NIM declined by 8 basis points (bps) from 3.18% in Q1FY25. The bank has maintained its NIM guidance of 3.15% ± 5 bps for FY25.

Non-interest income and Provisions
The bank’s non-interest income rose by 24.2% Y-o-Y to ₹5,181 crore. Notably, recovery from written-off accounts more than doubled to ₹2,525 crore in Q2FY25 from ₹1,231 crore in Q2FY24. Provisions for non-performing assets (NPAs) decreased by 24.2% to ₹1,733 crore in Q2FY25, compared to ₹2,285 crore in the same period last year.

Improved Asset Quality
BoB’s asset quality improved, with gross NPAs falling to 2.5% in September 2024 from 3.32% a year earlier. Net NPAs also declined to 0.60% in September 2024, down from 0.76% in September 2023. The provision coverage ratio (PCR), including written-off accounts, stood at 93.61% compared to 93.16% in the previous year.

Capital Adequacy and Future Plans
BoB’s capital adequacy ratio stood at 16.26%, with Tier-I at 14.18% at the end of September 2024. The bank has no plans to raise equity capital due to its strong common equity Tier-I base. However, it has approval to raise ₹7,500 crore in capital through debt instruments.

About Bank of Baroda

Bank of Baroda offers a wide range of services, including personal banking, corporate banking, international banking, banking for small and medium-sized businesses (SMEs), rural banking, services for non-resident Indians (NRIs), and treasury services.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.