Bank of Baroda shares tank 10% after Q4 result; here is what disappointed the Street

The PSU bank’s net interest income (NII), however, declined 6.6% to ₹11,019 crore year-on-year (YoY) as against ₹11,793 crore in Q4 FY24.

On the asset quality front, Bank of Baroda’s gross non-performing asset (NPA) was reported at 2.26% in contrast to 2.43% quarter-on-quarter (QoQ). Net NPA for Q4 FY25 was seen at 0.58% as against 0.59% QoQ.

The bank’s board has also recommended a dividend of ₹8.35 per share for FY25. “Recommended a dividend of ₹8.35 (Eight Rupees Thirty-Five Paise only) per equity share (Face Value ₹2/- each fully paid up) for the FY2024-25, subject to declaration/approval at the ensuing 29th Annual General Meeting,” it said.

The bank's board has recommended declaring a dividend of 418%, subject to requisite approvals, it said.

Shares of Bank of Baroda hit their lower circuit of ₹224.21 apiece on the National Stock Exchange, plunging 10% post-earnings announcement after its gross slippages QoQ stood at ₹3,159 crore as compared to 2,915 crore. The bank’s write-offs for Q4 FY25 stood at ₹1,662 crore QoQ, as against ₹1,167 crore.

For the quarter under review, the net interest margin (NIM) stood at 2.86% in contrast to 2.94% QoQ.

The bank's global business has crossed ₹27 lakh crore as of March 31, 2025. Its credit cost remains below 1% at 0.47% for FY25.

BoB's global advances registered a growth of 12.8% YoY, and domestic advances grew by 13.7% in FY25, led by robust retail loan book growth.

Domestic current account and savings account (CASA) deposits registered a growth of 6.4% YoY at ₹4,96,462 crore as of March 31, 2025.

Bank of Baroda said that it maintained a strong asset quality in FY25 performance with 10.1% YoY growth in net profit.

The provision coverage ratio of the bank stood at 93.29% as of March 31, 2025.

The bank's capital adequacy ratio rose to 17.19%, from 16.31% at the end of FY24.

For the entire financial year 2024-25, the bank reported a 10% increase in profit at ₹19,581 crore, as against ₹17,789 crore in the previous year.

The bank's total income during the financial year rose to ₹1,38,089 crore, as against ₹1,27,101 crore a year ago.