CNN Central News & Network–ITDC India Epress/ITDC News Bhopal: Bank of Baroda (“Bank”), established on July 20, 1908, is a state-owned banking and financial services organization headquartered in Vadodara, Gujarat, India (formerly known as Baroda). Under the ‘Alternative Mechanism’ scheme, the government announced the merger of Vijaya Bank and Dena Bank with Bank of Baroda, which took effect on April 1, 2019.

Bank of Baroda is one of India’s largest banks, boasting a robust presence with 8,266 domestic branches and 10,419 ATMs and cash recyclers supported by self-service channels. The bank has a significant international presence with a network of 84 foreign offices spread across 17 countries.

Key Highlights:

Bank of Baroda recorded a year-on-year net profit increase of 9.5%, reaching ₹4,458 crore, due to lower loan costs.

The return on assets (ROA) has consistently remained above 1% for the past 8 quarters and was 1.13% in the first quarter of FY25.

The bank has shown a remarkable improvement in asset quality, with the gross non-performing assets (GNPA) decreasing by 63 basis points year-on-year to 2.88% in the first quarter of FY25, down from 3.51%.

The net non-performing assets (NNPA) reduced by 9 basis points year-on-year to 0.69% in the first quarter of FY25, compared to 0.78% in the first quarter of FY24.

The bank maintained a strong capital position with a Capital to Risk-Weighted Assets Ratio (CRAR) of 16.82% in the first quarter of FY25.

The global net interest margin (NIM) stood at 3.18% in the first quarter of FY25.

The operating profit for the first quarter of FY25 was ₹7,161 crore.

The cost of credit remained below 1%, at 0.47% for this quarter.

Bank of Baroda maintained a strong balance sheet with a Provision Coverage Ratio (PCR) of 93.32% including technical write-offs (TWO) and 76.58% excluding TWO.

The liquidity coverage ratio (LCR) was robust at approximately 138% as of June 30, 2024.

Due to strong growth in the retail loan portfolio, Bank of Baroda’s global advances increased by 8.1% year-on-year in the first quarter of FY25. There was significant growth in areas such as auto loans (25.1%), home loans (14.7%), personal loans (39.2%), mortgage loans (11%), and education loans (18.8%), leading to a 20.9% increase in the bank’s organic retail advances.

The global deposits increased by 8.9% year-on-year to ₹13,06,994 crore in the first quarter of FY25.

The global business grew by 8.6% year-on-year, reaching ₹23,78,675 crore as of June 30, 2024.