Bank of Baroda shares slide 8% after NIM pressure dents Q4 earnings

Shares of Bank of Baroda slipped as much as 8.1% on Tuesday to Rs 229 on the BSE after the state-run lender reported margin pressures that weighed on its March-quarter earnings despite a rise in net profit.

Bank of Baroda (BoB) reported a 3.3% year-on-year rise in standalone net profit for the quarter ended March 2025 (Q4FY25), at Rs 5,048 crore compared with Rs 4,886 crore in the same period last year. However, its net interest income (NII) — the key measure of a bank’s core earnings — fell 6.6% to Rs 11,020 crore from Rs 11,793 crore a year earlier, reflecting the pressure on net interest margins (NIM).

BoB earned Rs 30,642 crore in interest income during the March quarter, up 3.6% from Rs 29,583.40 crore a year ago, but its interest expenses surged 10% to Rs 19,622.39 crore from Rs 17,790.57 crore, crimping the NII.


Asset quality improves, provisions rise

The bank’s asset quality showed improvement, with gross non-performing assets (NPAs) declining to 2.26% from 2.43% on a sequential basis, while net NPAs eased slightly to 0.58% from 0.59%. Provisions, however, rose to Rs 1,551.51 crore compared with Rs 1,301.94 crore a year ago.

Dividend

BoB, India’s second-largest public sector lender by market capitalisation, announced a final dividend of Rs 8.35 per equity share for FY2024-25 and set June 6, 2025, as the record date for payment.

Despite the improvement in bottom-line profit and asset quality, the market focused on the squeeze in margins and NII decline, triggering sharp selling in the stock.

Also read | Bank of Baroda Q4 Results: PAT rises 3% YoY to Rs 5,048 crore; Rs 8.35/share dividend declared

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