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

On: May 6, 2025 6:30 PM

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Bank of Baroda shares : Bank of Baroda (BoB) share price has recently experienced significant volatility following the announcement of its Q4 FY25 financial results. On May 6, 2025, the stock plunged sharply

by 10% to hit its lower circuit limit at ₹274.15 on the NSE, reflecting investor concerns despite the bank posting some positive annual performance metrics.

Table of Contents

On May 6, 2025, Bank of Baroda shares dropped 10% intraday to ₹274.15, triggering the lower price band limit on the National Stock Exchange (NSE).
By May 7, 2025, the share price was trading around ₹244, down approximately 2% from the previous close1.
The stock has shown high trading volumes, indicating active market participation amid the earnings announcement.

Net Interest Income (NII): The bank reported a 6.6% year-on-year decline in NII to ₹11,020 crore from ₹11,793 crore in Q4 FY24. This shortfall in core income was a key factor behind the share price drop1 6.
Net Profit: Despite the NII dip, BoB posted a standalone net profit of ₹5,048 crore for Q4 FY25, a 3.2% increase year-on-year, supported by a 24% rise in other income to ₹5,210 crore.
Asset Quality: Gross Non-Performing Assets (NPA) improved to 2.26% from 2.43% in the previous quarter, and net NPA slightly improved to 0.58% from 0.59%. Provision coverage ratio stood strong at 93.29%, indicating prudent risk management.
Operating Profit: Operating profit increased marginally to ₹8,132 crore for the quarter4.
Net Interest Margin (NIM): NIM declined to 3.02% for FY25 from 3.18% in FY24, with the Q4 margin at 3.27% compared to 2.86% a year ago, showing some sequential improvement.

Dividend and Shareholder Returns

The Board of Bank of Baroda recommended a final dividend of ₹8.35 per equity share for FY25. The record date for dividend eligibility is June 6, 2025, which may attract investors seeking steady income.
Return on Assets (ROA) stood at 1.16%, and Return on Equity (ROE) was a healthy 16.96% for FY25, reflecting solid profitability metrics1.

Market Sentiment and Analyst Views

The sharp fall in share price was primarily driven by the unexpected decline in net interest income and concerns over rising provisions and slippages during the quarter.
Analysts had predicted a muted profit growth and slight rise in NII; however, the actual NII missed expectations, leading to negative market reaction.
Despite the short-term price correction, the bank’s improving asset quality and steady profit growth provide a positive medium-term outlook.

Historical Price Context

Over the past month, Bank of Baroda shares have traded mostly in the ₹245-₹255 range before the recent sharp decline.
The stock’s volatility reflects sensitivity to quarterly earnings and macroeconomic factors impacting the banking sector.

Summary

Parameter	Details (Q4 FY25)
Share Price (May 7, 2025)	₹244 (down 2.06%)
Net Interest Income (NII)	₹11,020 crore (down 6.6% YoY)
Net Profit	₹5,048 crore (up 3.2% YoY)
Gross NPA	2.26% (improved)
Net NPA	0.58% (improved)
Dividend	₹8.35 per share (final dividend)
ROA	1.16%
ROE	16.96%

Bank of Baroda’s share price reflects a mixed reaction to its Q4 FY25 results, with concerns over interest income causing a sharp decline, while profitability and asset quality improvements offer some reassurance to investors. The recommended dividend and steady profit growth may support the stock in the medium term, but near-term volatility is likely as the market digests these results. Investors should monitor upcoming corporate announcements and broader banking sector trends for further cues.