Bank of Baroda Shares Hit Lower Circuit as Q4 NII Drops 7%, Provisions Rise

Shares of Bank of Baroda (BoB) fell 10% and hit the lower circuit following the release of its Q4 FY25 earnings, which showed a 7% drop in Net Interest Income (NII) and an increase in provisions. This weighed on investor sentiment despite a 3.2% rise in quarterly net profit.

The PSB posted a standalone net profit of Rs 5,047.7 crore for the quarter ended March 2025, up from Rs 4,886.5 crore in the same quarter last year. However, NII came under pressure, declining 6.6% to Rs 11,019 crore, compared to Rs 11,793 crore in the corresponding period last year, BoB said in a regulatory filing.

Fresh slippages also rose to Rs 29,000 crore, up from Rs 25,000 crore in Q3 FY25.

Despite these concerns, the bank reported notable improvements in asset quality. The Gross NPA ratio fell to 2.26% (from 2.92% a year ago), while Net NPA improved to 0.58% (from 0.68%). The Provision Coverage Ratio (PCR) remained strong at 93.29%.

For the full fiscal year, BoB’s standalone net profit reached an all-time high of Rs 19,581 crore, marking a 10.1% year-on-year growth. Consolidated profit crossed Rs 20,000 crore, reaching Rs 20,716 crore.

The bank also recorded healthy growth in its retail and MSME loan portfolios, with retail advances rising 19.4%. Non-interest income increased by 14.8% YoY to Rs 16,647 crore, supporting overall profitability.

BoB’s Capital to Risk-Weighted Assets Ratio (CRAR) stood at 17.19%, while the Liquidity Coverage Ratio (LCR) for the consolidated entity was approximately 123%.

The board has recommended a dividend of Rs 8.35 per share for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

"Board of Directors at its meeting held today i.e. 06th May 2025 recommended a dividend at Rs. 8.35 (Eight Rupees Thirty Five Paise only) per equity share (Face Value Rs.2/- each fully paid up) for the FY2024-25 subject to declaration / approval at the ensuing 29th Annual General Meeting," it said in the exchange filing.

BoB shares closed 10.27% lower at Rs 223.65 apiece on the BSE at the end of the trading session.