Bank of Baroda — Q1 FY25
Bank of Baroda reported a 9.5% YoY PAT growth to INR 4,450 crore for Q1 FY25, driven by stable margins and lower credit costs.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
85%Questions answered1Evaded / deflected10Questions auditedConsistentNumbers vs filing
Answered
High priority
Loan growth mix and LDR guidance with regulatory comfort.
Asked by Rikin Shah, IIFL Capital Service
Management provided specific mix details and LDR band, directly answering the question.
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Question
So in terms of you articulating loan growth guidance of 12%-14%, would you be able to share how the mix would be moving in terms of the growth? And just to clarify on this, if your deposit is 10%-12% and loan growth is 12%-14%, are we saying that the LDR can move up even slightly higher than 80%, and would the regulator be broadly okay?
Debadatta Chand, MD and CEO
So if you exclude the institution piece out of the corporate book, the core corporate has grown by 12%. So I mean, the corporate growth metrics are intact. ... We intend to operate between a band of 80-82%, and slightly the bias would be towards 80%.
Answered
Medium priority
Reason for 135 bps QoQ increase in yield on global investments.
Asked by Rikin Shah, IIFL Capital Service
Management explained both international yield movement and domestic norm changes as drivers.
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Question
So it was on yield on global investments, which is there in your PPT. So that has increased almost 135 QOQ to 5.4%. So is it only led by the new investment norms or something more to read into it?
Lalit Tyagi, Executive Director
So in fact, the international investment yield has largely impacted because of the yield movement there. ... In domestic also, you rightly picked up, slightly it has been aided by the new investment valuation norms or classification norms, I would say, with the RBI.
Answered
High priority
Why profitability disappointed despite lower provisions?
Asked by Ashok Ajmera, Ajcon Global Services
Management explained the strategic choice to strengthen balance sheet over short-term profit, addressing the disappointment.
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Question
Sir, I would, in my opening observation say, sir, we are a little bit disappointed, sir, in the overall profitability ... So on every front in the other income, which has, I think, made a major dent on the overall profitability.
Debadatta Chand, MD and CEO
Actually, the issue is where you have gained. Even if there is a lower other income and non-interest income, how the profit has been so strong? ... the family silver, Ajmera sir, we kept it with the book, not otherwise, leading to a position wherein I have strengthened the structural balance sheet.
Evasive
Medium priority
Can operating profit return to INR 8,200 crore in coming quarters?
Asked by Ashok Ajmera, Ajcon Global Services
Management declined to give operating profit guidance and redirected to ROA.
no guidance on operating profitreframed to ROA guidance
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Question
If all the events were one-off events, can we actually in the coming quarters, we'll come back to that 8,000+ operating profit, INR 8,200 crore plus operating profit?
Debadatta Chand, MD and CEO
So on the operating profit scale, normally we don't give a guidance on the operating profit, but clearly what is important to me on the net profit and the ROA guidance. So we continue to hold that ROA. This time also it is 1.13, and we said last time that we need to maintain 1.10.
Partial answer
High priority
Why SME slippages remain high and PL GNPA inch up?
Asked by Kunal Shah, CRED
Management claimed stabilization but did not address the 4% run rate directly; denied PL GNPA increase.
no specific SME slippage rate givendisputed PL GNPA increase
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Question
So with respect to the slippages, when we look at it in terms of the SME slippage, it's still continuing to be slightly at the higher end over past a few quarters, running at almost like, say, 4% kind of run rate. So anything much to read into that? And even on the PL side, there has been the inch up in the GNPAs to almost like 2.5%.
Debadatta Chand, MD and CEO
MSME, asset quality for last four quarters has fairly stabilized. ... PL side, in fact, is not increased. In fact, our PL is mostly to the service class individuals. So there is no challenge on the slippage side in the PL.
Answered
High priority
Risk to growth guidance and margins from liability profile.
Asked by Kunal Shah, CRED
Management reaffirmed ROA and margin guidance, and committed to catching up on growth.
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Question
But doesn't that mean like maybe even in terms of reaching the guided levels of growth, there could be some challenge out there if we don't see the stabilization and the improvement in the liability profile? And if there is any further risk which can happen on the margins or on the ROA front?
Debadatta Chand, MD and CEO
On the ROA, we are fairly confident. ... This quarter, we'll try to catch up whatever shortfall of the last quarter. ... Margin guidance is 3.15 plus minus 5 basis points, right? So that is what something, and we'll work on the growth side definitely this quarter.
Answered
Medium priority
Reason for higher retail slippage and strong gold loan growth.
Asked by Mahrukh Adajania, Nuvama Institutional Equities
Management explained the specific reason for retail slippage and gold loan strategy.
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Question
So my first question was again on asset quality, that the slippage in retail has gone up substantially. ... And even within that, your gold, non-agri gold has grown. ... what are your strengths vis-à-vis other banks in this portfolio?
Debadatta Chand, MD and CEO
If I look into the composition of this retail book, there is one group asset which has a dependency on the subsidy, and that has gone bad, actually. ... Gold Loan base of me and many of the peer banks, our base is low. ... retail gold gives a slightly higher margin as compared to the agri gold.
Answered
Medium priority
Is current credit cost sufficient for expected ECL norms?
Asked by Mahrukh Adajania, Nuvama Institutional Equities
Management explained that the higher credit cost guidance already factors in ECL impact.
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Question
Now, if ECL were to be implemented effective FY2025, is this kind of a credit cost through the rest of the year good enough to meet the new norms? I mean, the draft norms?
Debadatta Chand, MD and CEO
So actually, there are two scenarios. This time, credit cost is 0.47, and anything below 0.5 is a good number. ... we are giving is credit cost guidance of below 0.75, right? Earlier, it was 1. So why this guidance higher than the current level is precisely to factor in any ECL impact there.
Answered
Low priority
Reason for LCR rising to 138 from 121 and request for quarterly disclosure.
Asked by Speaker 10
Management provided specific reasons for LCR increase.
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Question
So this quarter, we have seen LCR rising to 138. Last quarter, it was around 121 something. What has changed? ... And also, a request, if you can also publish your LCR disclosure on a quarterly basis.
Lalit Tyagi, Executive Director
So in fact, sir, we have brought down our borrowings against the excess SLR. That is one point. The second point is that in terms of raising the fresh liabilities, which has the lower runoffs, that has also one contributing factor to the increase in LCR quarter on quarter.
Answered
High priority
Five-year growth plan, asset quality, and ROE outlook.
Asked by Speaker 11
Management provided specific CAGR and ROE targets.
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Question
How the bank is going to grow in terms of balance its size over, say, next 3-5 years. And related to that, how the quality of the assets, how the profitability of the bank overall is going to look like. ... how the return on equity is going to look like for this year and over, say, maybe 3-5 years?
Debadatta Chand, MD and CEO
We want to grow at a CAGR of almost 13.5% for next five years. ... intend to maintain ROE in excess of 15, 16%. I think that's a fair return on the equity that we can think of.
Answered
Medium priority
Reason for sharp fall in credit yield this quarter.
Asked by Speaker 12
Management explained the strategy of shedding fine-priced assets led to yield decline.
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Question
So sir, firstly, the question was related to credit yield number, which has fallen quite sharply this quarter. So if you can tell us what is the reason for that?
Lalit Tyagi, Executive Director
So precisely, it is related to our strategy of shedding the fine priced assets as when they came up for the repricing or at the time of maturity, we did not went further to onboard them.
Answered
Low priority
Reason for investment depreciation write-back and standard asset provision write-back.
Asked by Speaker 12
Management explained the specific account revaluation and NPA write-back.
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Question
Sir, the investment depreciation provision is like there is a so there is a INR 136 crore, which is credited to P&L. So that number and write back on the standard asset provision. So why these two things have happened and where this investment depreciation write back is coming from?
Lalit Tyagi, Executive Director
There was a specific account in which we got revaluation again and a specific account, NPA account. That's the reason. ... On the NPA investment, there is a write back because of increase in market value.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Net profit increased 9.5% YoY | 9.5% | 9.5% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.