Bank of Baroda shares slumped 15% after Q4 results; details here

Shares of Bank of Baroda (BoB) cracked 14.90 per cent in Tuesday's trade to touch an intraday low of Rs 212.10 after the PSU lender announced its fourth quarter (Q4 FY25) results.

The stock tumbled as the bank posted a 6.6 per cent (year-on-year) drop in its net interest income, at Rs 11,020 crore, as against Rs 11,793 crore in the corresponding period last year. During the quarter under review, provision for tax tanked 20.1 per cent to Rs 1,533 crore from Rs 1,745 crore in the year-ago period.

Provision for NPA bad debts slipped 12.7 per cent to Rs 1,297 crore in Q4 FY25. Total Provisions (other than tax) and contingencies, however, improved by 19.2 per cent to Rs 1,552 crore YoY.

BoB said its standalone net profit rose to an all-time high of Rs 19,581 crore in FY25, registering a 10.1 per cent YoY growth. Operating profit recorded a growth of 4.7 per cent YoY and stood at Rs 32,435 crore in FY25.

Return on assets (ROA) stayed above 1 per cent for FY25, coming at 1.16 per cent. Return on equity (ROE) was at 16.96 per cent for FY25.

G Chokkalingam, Founder and MD of market research firm Equinomics Research, said long-term investors should consider this as an opportunity to add the counter. "If you look at these PSU banks, many of them traded even at 1-1/2 times when the net NPA was more than 2 per cent. Today, many of these quality banks have a net NPA of 0.5 per cent but they still trade at a book value of 1x or below book value. I believe it is negative perception which will correct in the long term. So, BoB is a good stock for the long term and this anomaly would be corrected in a very substantial way," he told Business Today.

The lender's Board recommended a dividend of Rs 8.35 per equity share for FY25. "The bank has fixed record/cut off date as June 6, 2025, for the purpose of dividend payment. Hence, shareholders having shares as on the cut date i.e June 6, 2025, shall be eligible for dividend payment," BoB stated.