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📉 Bank of Baroda Q4 Results: Shares Drop 10% After NII Miss; Slippages Rise
Bank of Baroda's Q4 FY25 results failed to meet market expectations, leading to a sharp 10% drop in stock price. While net profit grew 3.2% YoY, Net Interest Income (NII) and gross slippages were concerning factors.
Net Profit: Bank of Baroda reported a net profit of ₹5,048 crore, a 3.2% increase YoY, surpassing the CNBC-TV18 poll estimate of ₹4,801 crore.
Core Income (NII): The Net Interest Income (NII) came in at ₹11,019 crore, missing expectations by 6.6% (projected ₹11,678 crore).
Gross Slippages & Write-offs: Gross slippages increased to ₹3,159 crore, and write-offs surged to ₹1,662 crore, signaling pressure on asset quality.
Provisioning: Provisions jumped to ₹1,552 crore, higher than the previous quarter's ₹1,082 crore.
Although the lender’s net NPA improved slightly from 0.59% to 0.58%, the rise in slippages and the decline in Net Interest Margins (NIMs), now at a 14-quarter low of 3.02%, raised investor concerns.
As of today, Bank of Baroda's stock has seen a 10% drop, with 29 analysts recommending a "buy" and 6 holding while 2 advise "sell."
