High deposit costs a drag on Bank of Baroda's Q4

Synopsis

Net involvement income-difference betwixt involvement paid to depositors and involvement earned connected loans-fell astir 7% YoY to ₹11,020 crore successful the 4th quarter. NII climbed 2% for the afloat fiscal year, portion NIM moderated to 3.02% from 3.18% a twelvemonth ago. However, non-interest income, which includes treasury gains, surged 24% successful the March 4th to ₹5,210 crore, boosting the bank's bottommost line.

Mumbai: State-owned Bank of Baroda connected Tuesday reported muted net for the March quarter, with nett net rising 3.3% and nett involvement borderline (NIM) contracting astir 40 ground points owed to elevated deposit costs. Net nett for the March 4th stood astatine ₹5,048 crore, compared with ₹4,886 crore successful the aforesaid 4th past year. For FY25, nett aft taxation climbed 10% YoY to ₹19,581 crore.

Net involvement income-difference betwixt involvement paid to depositors and involvement earned connected loans-fell astir 7% YoY to ₹11,020 crore successful the 4th quarter. NII climbed 2% for the afloat fiscal year, portion NIM moderated to 3.02% from 3.18% a twelvemonth ago. However, non-interest income, which includes treasury gains, surged 24% successful the March 4th to ₹5,210 crore, boosting the bank's bottommost line.

Debadatta Chand, MD of Bank of Baroda, said muted NII maturation was due to the fact that of higher outgo of deposits, which is successful enactment with marketplace trends. The outgo of deposits peaked successful the March 4th and person moderated since then. However, the unit connected NIM is expected to proceed for June and September quarters arsenic repricing of deposit complaint plays out.

"Q3 and Q4 (second fractional of FY26), NIM would prime up arsenic the liability operation aligns with the little deposit rate, wherever the caller deposit gets repriced astatine little rate. I americium reasonably assured of maintaining NIM astir 3%," helium said astatine the station net property meet.

Chand said the slope volition stock guidance of NIM on with June quarters net due to the fact that it would similar to spot however cardinal bank's 50 bps chopped successful argumentation repo complaint since February plays retired amid surplus liquidity conditions. He said that casual liquidity conditions whitethorn boost indebtedness and deposit maturation by 100-200 ground points implicit the guided range. For FY26, the slope has maintained the indebtedness maturation guidance of 11-13% and 9-11% for deposit growth.

Bank of Baroda's full loans grew astir 13% YoY to ₹12.3 lakh crore arsenic the extremity of March, portion full deposits roseate implicit 10% to ₹14.7 lakh crore.

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