Bank of Baroda MD & CEO Debadatta Chand addresses a press conference announcing the bank’s Q4 financial results, in Mumbai
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Bank of Baroda (BoB), India’s third largest public sector bank, reported a modest 3 per cent year-on-year (yoy) growth in fourth quarter (Q4FY25) standalone net profit at ₹5,048 crore, with the bottomline being supported by a healthy growth in other income and decline in tax expenses.

Net interest income and net interest margin declined in the reporting quarter even as the asset quality showed further improvement.

The bank had recorded a net profit of ₹4,886 crore in the year-ago quarter (Q4FY24). BoB’s board recommended a dividend at ₹8.35 per equity share (face value ₹2 each fully paid up) for FY25.

Net interest income (difference between interest earned and interest expended) declined about 7 per cent to ₹11,020 crore (₹11,793 crore in Q4FY24) as total interest expenses growth outpaced total interest income growth.

Other income rose 24 per cent y-o-y to ₹5,210 crore (₹4,191 crore) mainly on the back of 107 per cent jump in treasury income and about 14 per cent growth in fee-based income.

Net interest margin/NIM (NII/ total assets) declined to 2.86 per cent in Q4FY25 from 3.27 per cent in Q4FY24.

Total provisions including towards for non-performing assets (NPAs) & bad debts written-off and standard advances were up 19 per cent y-o-y to ₹1,552 crore (₹1,302 crore).

Gross NPAs position improved to 2.26 per cent of gross advances as at March-end 2025 against 2.92 per cent as at March-end 2024. Net NPAs position too improved to 0.58 per cent of net advances from 0.68 per cent.

Debadatta Chand, MD & CEO, emphasised that the asset quality of the bank now is one of the best in the last 13 years. He attributed the lower growth in net interest income to elevated cost structure of deposits.

Chand said that full year NIM has been maintained at 3 per cent thereabouts against 3.18 per cent in FY24.

Deposits up 10.3%

Global deposits were up 10.3 per cent y-o-y to ₹14,72,035 crore as at March-end 2025, with domestic deposits and international deposits rising 9.3 per cent and 15.8 per cent, respectively.

Global advances increased by 12.8 per cent y-o-y to ₹12,30,461 crore, with domestic gross advances and international advances rising 13.7 per cent and 8.8 per cent, respectively.

Chand sees deposits and advances growing at 9-11 per cent and 11-13 per cent, respectively in FY26.

“But with liquidity back in the system, I think, we will operate at the top end of the stated range or slightly upsize that further. So, we will give a clear guidance in June,” he said.

Meanwhile, for FY25, BoB reported a 10 per cent yoy increase in net profit at ₹19,581 crore (₹17,789 crore).

Published on May 6, 2025