Bank of Baroda shares slip 10% as net interest income drops 7%, provisions rise in Q4; net profit rises 3%

Bank of Baroda's shares have hit 10 percent lower circuit on May 6 after the PSU lender reported 7 percent drop in net interest income (NII) and a rise in provisions. The net profit, however, rose 3.2 percent to Rs 5,047.7 crore for the fourth quarter ended March 2025. The company had reported a profit of Rs 4,886.5 crore in the March quarter of the previous year.

This is the biggest fall for the lender's shares after June 4, 2024 when they fell 16 percent.

The NII dropped 7 percent to Rs 11,019 crore during the quarter under review from Rs 11,793 crore in the same period last year, BoB said in a regulatory filing.

Total income for the quarter climbed to Rs 35,851.85 crore from Rs 33,774.87 crore YoY.

Operating profit before provisions stood at Rs 8,132 crore, marginally up from Rs 8,106 crore, while provisions and contingencies rose to Rs 1,551 crore from Rs 1,302 crore a year ago. Tax expenses also saw an increase to Rs 1,523 crore versus Rs 1,303 crore.

Asset quality showed visible improvement. The Gross NPA ratio fell to 2.26 percent from 2.92 percent a year earlier, while Net NPA improved to 0.58 percent from 0.68 percent.

However, fresh slippages during the quarter stood at Rs 29,000 crore, higher than Rs 25,000 crore reported in Q3 FY25, raising some caution among investors.

For the full year FY25, Bank of Baroda posted a net profit of Rs 19,581 crore, up from Rs 17,788 crore in FY24. The full-year NII stood at Rs 44,368 crore, slightly lower than Rs 45,231 crore a year earlier.

The lender also recommended a dividend of Rs 8.35 per share to the shareholders and fixed record date for the same.

In an exchange filing, it said "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."

"Bank has fixed record/cut off date as 06th June 2025 for the purpose of dividend payment. Hence, shareholders having shares as on the cut date i.e 06th June 2025 shall be eligible for dividend payment," it added.

Shares of Bank of Baroda Ltd dropped 10 percent to Rs 224.21 per share on the NSE.Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.