Bank of Baroda (BoB), a state-owned bank, is making headlines as its board has decided to raise ₹10,000 crore to support infrastructure and affordable housing projects. This is exciting news for the bank and could improve many lives!
During a meeting on December 18, 2024, the board approved the plan to gather funds through long-term bonds. They may raise this money in one go or in smaller parts during the financial year 2024-25, depending on what the market looks like and whether it’s a good time to do so.
In the second quarter of the financial year 2024 (Q2 FY24), Bank of Baroda reported a net profit of ₹5,238 crore, which is a 23.2% increase from ₹4,253 crore in the same time last year. The bank’s income from loans also grew by 7.3% to ₹11,622 crore in Q2 FY25.
The bank has been performing really well, with a return on assets (ROA) of 1.30% for Q2 FY25, and return on equity (ROE) reaching 19.22%. Its overall income grew by 12% from last year, helped by a strong 24.2% increase in income from services beyond just loans.
Furthermore, Bank of Baroda’s bad loans have decreased! The gross non-performing asset (NPA) ratio improved to 2.50% in Q2 FY25, down from 3.32% a year earlier. The net NPA ratio also improved, standing at 0.60%.
On Wednesday, Bank of Baroda’s shares closed at ₹250.60, dropping by 2.1%. In 2024, the stock has gained 7%, and over the past two years, it has increased by 38%. The bank’s market cap is now ₹43,011 crore.
(Disclaimer: The views and opinions stated are those of the experts and do not reflect the views of NiftyStat.)
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