Bank of Baroda — Q3 FY25
Bank of Baroda reported a steady Q3 FY25 with PAT of ₹4,837 crore (+5.6% YoY) and operating profit growth of 9.3% YoY.
bullish
high
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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.
77%Questions answered1Evaded / deflected11Questions audited
Partial answer
High priority
Why did domestic advance yield decline sharply? Upside risk to margin guidance?
Asked by Rikin Shah
Clarified 'upside bias' vs 'risk' but did not address why yield declined sharply.
clarified terminology but did not explain yield decline
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Question
The domestic advance yield has declined again very sharply in this quarter. And what explains that? ... you mentioned that there could be an upside risk to our margin guidance of 3.05%... How would that really kind of come through?
Debadatta Chand, Managing Director and CEO
Actually, on the margin side, there is no upside risk. What I said, the upside bias. So when I say 3.10, what I'm telling is that we'll try to have an upside bias. That means we'll try to achieve 3.10, not a risk to that, right?
Answered
High priority
Why is personal loan GNPA rising despite 7% QoQ growth?
Asked by Rikin Shah
Provided specific numbers and explained that the increase is insignificant relative to total slippage.
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Question
The personal loan GNPA ratio in the last few quarters has been rising. Despite that, we have seen almost 7% QoQ PL growth in this quarter. What's the thought process there?
Debadatta Chand, Managing Director and CEO
If you look at the GNPA that we announced for the personal loan, the book is small, let's say INR 32,000 crore. And the GNPA for December and September, there is almost a 0.5% increase on the GNPA. In terms of amount, it translates to a INR 100 crore per quarter.
Answered
Medium priority
Will elevated SMA accounts roll back next quarter?
Asked by Rikin Shah
Confirmed rollback and provided updated SMA percentage.
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Question
Last quarter, of course, we had called out a couple of accounts because of which it was elevated. They seem not to have been rolled back. Do you expect them to see a rollback in the coming quarter?
Debadatta Chand, Managing Director and CEO
Yes, there is already actually we rolled back. ... a couple of accounts, four or five accounts, which was there, which was more of a technical ... out of that three already pulled back again today. So if I look at the clean SMA that we have declared, actually it is not 0.49%, now it is 0.19%.
Answered
High priority
What is the recovery on written-off book for Q4 and going ahead?
Asked by Rakesh Kumar
Provided normalized run rate and explained the one-off impact.
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Question
So firstly, what is the recovery on written-off number is going to be for fourth quarter and going ahead. And is the recovery number, you know, the interest income accrual number going into the interest income line, was that number INR 300 crore-INR 350 crore that we lost this quarter?
Debadatta Chand, Managing Director and CEO
Our normalized run rate for recovery out of written-off is almost INR 750-INR 800 crore. ... The fall in the recovery in written-off this is the last quarter entering the Q2, Q3 over Q2. It is also supported this time by the higher treasury income and also one tax element.
Answered
Medium priority
What drove the strong fee income this quarter?
Asked by Rakesh Kumar
Provided specific growth percentage and explained focus on core fee income.
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Question
On fee income, if you can highlight some of the things that why it happened, what are we doing, and why did we achieve this kind of a strong number on our fee income, sir?
Debadatta Chand, Managing Director and CEO
If you look at the core fee income this quarter, the growth is 12.6%. And that is where we want to optimize that. ... Clearly, as a management, as a bank, we are clearly focused on how to optimize on the core fee income.
Answered
High priority
If adjusted for lower interest income, would margins be 10 bps higher?
Asked by Piran Engineer
Confirmed the analyst's understanding and explained the one-off.
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Question
this INR 300-INR 350 crore lower interest income, if we adjust for that, our margins would be about 10 basis points higher. Is that a correct understanding?
Debadatta Chand, Managing Director and CEO
It is actually. Last time, as I said, there was one account which was a one-off in terms of a recovery of an NCLT resolution. And significantly, the recovery was full in that case, putting a positive interest income impact of roughly around INR 300-INR 350 crore.
Partial answer
Medium priority
What are the borrowings that increased to 1.3 lakh crore and their cost?
Asked by Piran Engineer
Explained composition but did not provide the cost of borrowings.
no cost given
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Question
on our borrowings, in the last two quarters, it's gone up from roughly 90,000 crore to now 1.3 lakh crore. Can you just help us as to what are these borrowings? ... ballpark, what would be the cost of these borrowings of the entire borrowing?
Lalit Tyagi, Executive Director
last quarter, we raised infra bond to the extent of 5,000 crore. Put together, this financial year, we have raised infra bond to the extent of 15,000 crore. And we also tap from time to time the competitive refinance from some of the domestic specialized institutions.
Evasive
Low priority
Can you clarify RBI's stance on gold loan collateral and LTV?
Asked by Piran Engineer
Refused to comment on unconfirmed regulatory matters.
declined to commentno guideline yet
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Question
there is a lot of talk about Agri Gold Loans below 2 lakh should actually be collateral-free ... And also in regular consumer Gold Loans, a lot of talk about refinancing ... 75% LTV throughout the loan ... maybe if you can just share some light on what's the RBI thinking?
Debadatta Chand, Managing Director and CEO
As long as it's not a guideline, it's normally difficult to comment on that. Actually, there are matters which are again not crystallized, so we have not framed a stance on the matter.
Answered
High priority
What is the new normal for credit cost? 40 bps or 35 bps?
Asked by Mahrukh Adajania
Provided a clear band and reiterated guidance below 0.75%.
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Question
So is this a new normal now? Or where do you see your credit costs settle in the fourth quarter or maybe over the next three to four quarters? What should we build in? Like 40 basis points, 35, what is the number?
Debadatta Chand, Managing Director and CEO
There is no new normal. The only normal is that the credit cost should be below 0.75%, right? ... maybe a band between 0.5% to 0.75% would likely end in the full year.
Answered
Medium priority
Is home loan growth driven by refinancing from private banks?
Asked by Mahrukh Adajania
Denied refinancing and provided organic growth numbers.
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Question
if you see some private banks, they are not being able to deliver growth of 4%. Very few are delivering even 3% QOQ. So is it that you are getting a lot of refinancing requests from private banks?
Debadatta Chand, Managing Director and CEO
there is no, actually, the numbers that we have given is an organic book. So there is no refinancing or anything from private banks on the matter. The numbers that we see is 20% or 19.5% on the home loan, 16.6% is the organic book.
Partial answer
High priority
Why did international margins decline? Can they be maintained at 1.9-2%?
Asked by Kunal Shah
Provided current and expected range but did not explain the decline from 2.02 to 1.83.
no explanation for decline
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Question
this quarter we saw a decline. Last time you indicated it can still be managed at 1.9%-2.5%. And given the global rate environment, do we see pressure over there?
Debadatta Chand, Managing Director and CEO
The margin is stable, actually. If you look at the nine months margin on international, it is 2.02. And this quarter, it's at 1.83. ... broadly, our NIM on the international would be 1.9-2. That is what we are hopeful going forward we can maintain.
Evasive
High priority
Why is interest on advances growth lower than loan growth?
Asked by Jai Mundhra
Did not explain the gap; instead framed it as a positive quality improvement.
reframed as positiveno direct explanation
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Question
if I look at your interest on advances, right? Only the gross interest on advances, that has gone up by 9.7% YoY in this quarter versus 11.8% growth in advances, right? ... why is that the interest on advances growth is lower than the loan growth?
Manoj Chayani, CFO
that's very positive that the book increase is 11.8% and the interest income increase is almost 9.7%. See, one instance that would have seen that we are also in the meantime building the quality of the book, right?