Shares of Bank of Baroda fell 4 percent on July 8, dragged by the lender's weakest deposit and advances growth in 12 quarters. On top of that, the lender's deposit and advances also dropped on a sequential basis.
Global deposits fell 1.6 percent on quarter to Rs 13.05 lakh crore while domestic deposits were down 2 percent to Rs 11.05 lakh crore. Advances also slipped 1.7 percent on sequential basis to Rs 10.72 lakh crore in Q1 of FY25.
On a yearly basis as well, growth was the slowest seen in the last 12 quarters. On an on-year basis, deposits were up around 9 percent while advances grew 8.1 percent.
At 11.25 am, shares of Bank of Baroda were trading at Rs 265.85 on the NSE.
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Meanwhile, the company's board also approved the raising of additional capital of up to Rs 7,500 crore through debt capital instruments.
The bank plans to raise capital in suitable tranches until March 31, 2025, or beyond if necessary, depending on market conditions.
It reported a net profit of Rs 4,886 crore for the March quarter of FY24, a mere 2.3 percent growth as it was impacted by exposure to grounded airline Go First and pension liabilities.
In the last quarter of FY24, core net interest income grew by 2.3 percent, driven by increased advances, while non-interest income rose by 20.9 percent. The bank has fully provisioned for Go First, now recognized as a non-performing asset, leading to higher provisioning.
For FY25, the lender targets credit growth of 12-14 percent, deposit growth of 10-12 percent, and aims to maintain NIMs at 3.15 percent.
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