Bank of Baroda FY25 Annual Earnings Summary
4 quarters covered · ₹0 Cr revenue · ₹20,054 Cr PAT · 0.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY25Risks flagged during the year
Retail slippages rose substantially in Q1, partly due to seasonal factors and subsidy-dependent assets, but could persist.
Q1 FY25 · mediumMSME slippages remain elevated at ~4% run rate, though management says it has stabilized; any deterioration could impact credit cost.
Q1 FY25 · mediumCredit yield fell 25bps sequentially due to shedding of high-yield assets and competitive pricing, potentially pressuring NIM.
Q2 FY25 · mediumDeposit growth is under pressure due to savers shifting to capital markets, leading to a downward revision in deposit guidance.
Q2 FY25 · mediumInternational NIM declined to ~2% from 2.13-2.14% due to repricing in overseas markets, with further moderation expected.
Q3 FY25 · mediumCD ratio at 84.24% and tight liquidity conditions could pressure margins if deposit costs remain high.
Q3 FY25 · mediumRBI discussions on collateral-free agri loans and stricter gold loan norms could impact business, but management declined to comment.
Q4 FY25 · mediumDeposit costs are slow to reprice downward, pressuring NIM in Q1 FY26 before expected recovery in H2.
Q4 FY25 · mediumMSME slippages increased by INR 300-500 crore in Q4, though management attributes it to legacy accounts and remains confident in overall asset quality.
Q4 FY25 · mediumInternational NIM fell to 1.97% from over 2% due to repricing of assets in a lower rate environment, impacting global NIM given the large international book.
Q2 FY25 · lowPersonal loan slippages have increased to ~INR 250 crore per quarter from ~INR 100 crore earlier, though still small relative to total book.
Q2 FY25 · lowHigher prudential provisions (floating and standard asset) were taken this quarter, which could pressure earnings if sustained.
What changed through the year
Q1 FY25 · Loan growth 12-14% for FY25
Management reiterated loan growth guidance of 12-14% for FY25, with strong pipeline in corporate and retail segments.
Q1 FY25 · Deposit growth 10-12% for FY25
Deposit growth guidance of 10-12% for FY25, with focus on retail deposits and CASA improvement.
Q1 FY25 · NIM guidance 3.15% ± 5bps
Net interest margin guidance maintained at 3.15% ± 5bps for FY25, supported by liability management.
Q1 FY25 · Credit cost below 0.75% for FY25
Credit cost guidance improved to below 0.75% for FY25, factoring in potential ECL impact.
Q2 FY25 · Deposit growth guidance revised to 9-11% for FY25
Management lowered deposit growth guidance from 10-12% to 9-11%, citing systemic deposit constraints, but aims to operate at the upper end of 11%.
Q2 FY25 · Loan growth guidance revised to 11-13% for FY25
Advances growth guidance reduced from 12-14% to 11-13%, with a target to operate at 13%, driven by domestic growth and moderation in international book.
Q2 FY25 · NIM guidance maintained at 3.15% ±5 bps
Net interest margin guidance remains unchanged at 3.15% plus/minus 5 basis points, supported by ALM management and expected moderation in deposit costs.
Q2 FY25 · Credit cost guidance maintained below 0.75%
Credit cost guidance remains below 0.75%, with slippage ratio guided at 1-1.25% and ROA above 1% (target 1.10%).
Q3 FY25 · Full-year NIM guidance revised to 3.00-3.10%
Management guided NIM for FY25 at 3.05% ± 5 bps (3.00-3.10%), with an upside bias due to potential rate cuts and improved liquidity.
Q3 FY25 · Deposit growth guidance maintained at 9-11%
Management reiterated deposit growth guidance of 9-11% for FY25, with continued focus on reducing bulk deposit dependency.
Q3 FY25 · Advance growth guidance maintained at 11-13%
Management reiterated advance growth guidance of 11-13% for FY25, with focus on RAM (retail, agri, MSME) segments.
Q3 FY25 · Credit cost guidance maintained below 0.75%
Management maintained credit cost guidance of less than 0.75% for FY25, despite 9M credit cost of 0.47%.
Q4 FY25 · Loan growth guidance of 11-13% for FY26
Management maintained loan growth guidance of 11-13% for FY26, with potential upside if liquidity improves.
Q4 FY25 · Deposit growth guidance of 9-11% for FY26
Deposit growth guidance maintained at 9-11%, with focus on reducing bulk deposit dependency.
Q4 FY25 · NIM expected to be flat YoY in FY26
Management expects full-year NIM to be similar to FY25, with Q1 under pressure and recovery from Q2 onwards.
Q4 FY25 · Slippage ratio guidance of 1-1.25% for FY26
Slippage ratio guidance maintained at 1-1.25%, with actuals trending well below this range.