Risks
4 risks
Risk Intelligence
NIM compression from lagging deposit repricing
View Risks →Bank of Baroda — Q4 FY25
Bank of Baroda reported a stable Q4 FY25 with PAT of INR 5,048 crore, contributing to a record full-year PAT of INR 19,581 crore.
neutral
medium
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Bank of Baroda reported a stable Q4 FY25 with PAT of INR 5,048 crore, contributing to a record full-year PAT of INR 19,581 crore. Domestic advances grew 13.7% YoY, driven by retail (19.4%) and agri/MSME (14.2%), while corporate growth moderated to 8.6%. Global NIM declined to 3.02% (domestic 3.18%) due to elevated deposit costs and repo rate cuts, with Q1 FY26 expected to remain under pressure before recovering in H2. Asset quality improved further: GNPA fell to 2.26% and net NPA to 0.58%, with slippage ratio at 1% and credit cost at 0.47%—well below guidance. Management refrained from giving full-year NIM guidance, citing an inflection point in rates and liquidity. Key risks include margin compression from lagging deposit repricing and potential stress in MSME slippages, though overall asset quality remains robust.
बैंक ऑफ बड़ौदा ने वित्त वर्ष 2025 की चौथी तिमाही में 5,048 करोड़ रुपये का शुद्ध लाभ कमाया, जिससे पूरे साल का कुल लाभ 19,581 करोड़ रुपये का रिकॉर्ड बना। देश में कर्ज बढ़ोतरी 13.7% रही, जिसमें खुदरा कर्ज 19.4% और कृषि/लघु उद्योग कर्ज 14.2% बढ़ा, जबकि कंपनियों को दिए गए कर्ज की बढ़त 8.6% रही। ब्याज दरों में कटौती और जमा पर अधिक लागत के कारण बैंक का कुल ब्याज मार्जिन घटकर 3.02% रह गया। अगली तिमाही में भी दबाव रहेगा, लेकिन साल की दूसरी छमाही में सुधार की उम्मीद है। बैंक के खराब कर्ज में कमी आई है - कुल खराब कर्ज 2.26% और शुद्ध खराब कर्ज 0.58% रह गया। प्रबंधन ने आगे ब्याज मार्जिन का अनुमान नहीं दिया। मुख्य जोखिम जमा दरों में देरी से बदलाव और लघु उद्योगों के कर्ज में तनाव है, लेकिन कुल मिलाकर स्थिति मजबूत है।
Risks4 trackedTranscriptfull text
Research workspace
Focused Modules
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Domestic Advances Growth
13.7%
+13.7% YoY
Domestic loan book grew 13.7% YoY, driven by retail (19.4%) and agri/MSME (14.2%).
Global NIM
3.02%
-8bps YoY
Full-year global NIM declined to 3.02% from 3.10% due to elevated deposit costs and repo rate cuts.
Gross NPA Ratio
2.26%
-66bps YoY
GNPA improved to 2.26%, the best in 13 years, with unidirectional downward trend for 12 quarters.
CASA Ratio
39.97%
+0.6pp YoY
CASA ratio remained strong at 39.97%, with retail CASA growing 5% YoY despite tight liquidity.
What Changed vs Last Quarter
NEW
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.
NEW
Slippage ratio guidance of 1-1.25% for FY26
Slippage ratio guidance maintained at 1-1.25%, with actuals trending well below this range.
UPDATED
Loan growth guidance of 11-13% for FY26
Management maintained loan growth guidance of 11-13% for FY26, with potential upside if liquidity improves.
UPDATED
Deposit growth guidance of 9-11% for FY26
Deposit growth guidance maintained at 9-11%, with focus on reducing bulk deposit dependency.
DROPPED
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.
DROPPED
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%.
NEW RISK
NIM compression from lagging deposit repricing
Deposit costs are slow to reprice downward, pressuring NIM in Q1 FY26 before expected recovery in H2.
NEW RISK
MSME slippage uptick
MSME slippages increased by INR 300-500 crore in Q4, though management attributes it to legacy accounts and remains confident in overall asset quality.
NEW RISK
International NIM decline
International 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.
NEW RISK
Pension amortization overhang
The bank continues to amortize pension liabilities (INR 290 crore remaining), unlike peers who have fully written off, creating a future earnings drag.
RISK GONE
Elevated CD ratio and tight liquidity
CD ratio at 84.24% and tight liquidity conditions could pressure margins if deposit costs remain high.
RISK GONE
Rising personal loan NPAs
Personal loan GNPA rose to 3.9% from 3.16% QoQ, though management downplayed it as small in absolute terms.
RISK GONE
Potential regulatory changes in gold loans
RBI discussions on collateral-free agri loans and stricter gold loan norms could impact business, but management declined to comment.
RISK GONE
Margin pressure from one-off recovery normalization
Q2 had a one-off recovery of ~₹350 crore boosting interest income; its absence in Q3 contributed to margin decline.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25
Management maintained credit cost guidance of less than 0.75% for FY25, despite 9M credit cost of 0.47%.
Mentioned in Q1 FY25, Q2 FY25, Q3 FY25
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.
Mentioned in Q1 FY25, Q3 FY25
Q2 had a one-off recovery of ~₹350 crore boosting interest income; its absence in Q3 contributed to margin decline.
Fast read
Guidance and risk preview
Management maintained loan growth guidance of 11-13% for FY26, with potential upside if liquidity improves.
Deposit costs are slow to reprice downward, pressuring NIM in Q1 FY26 before expected recovery in H2.
View Risks →