Bank of Baroda likely to report 5% YoY net profit growth in Q2FY25

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Bank of Baroda (BoB) may report a 5 per cent year-on-year increase in second quarter (Q2FY25) net profit at ₹4,482 crore, per analyst estimates, due to expected decent growth in net interest income (NII) and lower credit cost.

Both PL Capital and Axis Capital, in their Q2FY25 results preview, have estimated the public sector bank’s loan growth to be slower at 12 per cent (19 per cent in the year-ago quarter). Axis Capital expects the Bank’s deposit growth to be lower at 9 per cent (15 per cent).

Credit cost is seen lower at 0.5 per cent by PL Capital and 0.40 per cent by Axis Capital against 0.87 per cent in the year ago period.

PL Capital expects BoB’s gross non-performing assets (NPA) ratio to improve to 2.79 per cent of gross advances (against 2.88 per cent in the preceding quarter). Net NPA ratio too is likely to improve to 0.66 per cent of net advances (from 0.69 per cent).

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