Bank of Baroda (BoB) Tuesday reported a 10.1% year-on-year (YoY) rise in net profit for the financial year ending March 31, 2025. The net profit rose to ₹19,581 crore in FY25, up from ₹17,789 crore in the previous financial year.

For the January-March quarter (Q4FY25), the bank posted a net profit of ₹5,048 crore, marking a 3.3% YoY growth compared to ₹4,886 crore in Q4FY24. On a sequential basis, profit was also higher than ₹4,837 crore reported in Q3FY25. The bank attributed the consistent profit growth to improved operational efficiencies, robust loan growth, and sustained asset quality across its portfolio.

During FY25, the bank’s net interest income (NII) grew by 2.1% to ₹45,659 crore, while non-interest income surged by 14.8% to ₹16,647 crore. Global net interest margin (NIM) stood at 3.02%, with domestic NIM at 3.18%.

Operating profit for the year increased by 4.7% to ₹32,435 crore. The bank maintained a cost-to-income ratio of 47.94%, reflecting continued cost discipline. Return on Assets (RoA) stood at 1.16% and Return on Equity (RoE) at a strong 16.96% for FY25.

Bank of Baroda continued to maintain strong asset quality in FY25. The gross non-performing assets (GNPA) of the bank declined by 12.6% year-on-year to ₹27,835 crore, with the GNPA ratio improving significantly to 2.26% in FY25 from 2.92% in FY24. The net NPA ratio also saw an improvement, at 0.58% in FY25 compared to 0.68% in the previous year.

The bank reported a robust Provision Coverage Ratio (PCR) of 93.29%, including technical write-offs (TWO), and 74.87%, excluding TWO. The slippage ratio declined to 0.78% in FY25 from 0.99% in FY24, while credit cost remained well-contained at 0.47% for the year, underscoring the bank’s effective risk management and recovery mechanisms.

Bank of Baroda maintained a strong capital position as of March 2025, with the Capital to Risk-Weighted Assets Ratio (CRAR) standing at 17.19%. Within this, Tier-I capital stood at 14.79%, comprising Common Equity Tier-1 (CET-1) at 13.78% and Additional Tier-1 (AT1) at 1.01%. Tier-II capital stood at 2.40%. On a consolidated basis, CRAR was even higher at 17.60%, with CET-1 at 14.28%. The bank also reported a healthy Liquidity Coverage Ratio (LCR) of approximately 123% on a consolidated basis, reflecting strong liquidity buffers and prudent capital management.