Any current/future new fundraising through debt or equity?

The bank has already raised ₹15,000 crore through infrastructure bonds and ₹3,500 crore through Tier 2 instruments this financial year. There is still some headroom available for further fundraising through infrastructure bonds and Tier 2 instruments. The bank continues to focus on normal fundraising via debt instruments but has not planned any equity raise as of now. The bank is adequately capitalized currently and can sustain credit growth of 14-15% with existing capital. However, the bank will evaluate the need for equity raising in the future based on evolving capital requirements and regu

Any current/future capex/capital investment/strategic investment?

The bank's technology expenditure, including both revenue and CapEx, is normally over ₹4,000 crore. Around 12% to 15% of operating profit is allocated towards tech spend, covering digital investments. The bank plans to continue this level of tech investment in the current financial year and FY26. Fundraising for infrastructure: ₹15,000 crore already raised; Tier 2 capital raised ₹3,500 crore. Some headroom remains for further fundraising in both infrastructure and Tier 2 debt. No immediate plans for equity capital raise as the bank is adequately capitalized. Future equity raising will be evalu

Future growth expectations in earnings/operating earnings/profits/EPS?

Operating profit growth is steady, with a 9.3% YoY increase this quarter and 6.3% growth over 9 months. Net profit growth was 5.6% YoY for the quarter and 12.6% for the 9 months, indicating moderate earnings growth. Return on assets (ROA) consistently above 1% for 10 quarters, currently at 1.15% quarterly and 1.17% for 9 months. Return on equity (ROE) remains robust at around 17%. Net Interest Margin (NIM) guidance for FY25 is set between 3.0% and 3.10%, aiming for the higher band due to expected liquidity improvements and potential rate cuts. The bank plans to optimize non-interest income to

Bank of BarodaQ4 FY25Banks

Bank of Baroda Q4 FY25 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹249P/E: 5.8Market Cap: ₹1.3L CrSector: Banks

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Yes

Order

N/A

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

- Personal loan growth is moderated intentionally from previous 70-80% to around 25-30%, with recent quarter showing 24% growth, focusing more on salaried class with higher bureau scores for quality underwriting. - Retail Advances (part of RAM - Retail, Agri, MSME) continue to grow strongly at around 20% for 10-12 quarters. - Agri and MSME segments are expected to be "sweet spots" with good quality underwriting and above-average growth, showing improvement of 200 bps from Sept to Dec 2024. - Overall RAM portfolio growth is outpacing corporate credit growth, aiming to improve mix and quality further. - Bank guidance for margin remains stable with NIM operating guidance around 3-3.10%, potentially improving to 3.10%, supported by growth in high-yield retail loans. - Deposit growth, including retail CASA, is maintained with a focus on retail over bulk deposits while innovating product offerings to increase customer preference and traction. Overall, growth is managed with focus on quality and diversification across segments.

Margin guidance

Category 3

→Operating profit growth is steady, with a 9.3% YoY increase this quarter and 6.3% growth over 9 months.
→Net profit growth was 5.6% YoY for the quarter and 12.6% for the 9 months, indicating moderate earnings growth.
→Return on assets (ROA) consistently above 1% for 10 quarters, currently at 1.15% quarterly and 1.17% for 9 months.
→Return on equity (ROE) remains robust at around 17%.
→Net Interest Margin (NIM) guidance for FY25 is set between 3.0% and 3.10%, aiming for the higher band due to expected liquidity improvements and potential rate cuts.
→The bank plans to optimize non-interest income to balance muted Net Interest Income growth due to rising interest expenses.
→Capital adequacy (CRAR ~17%) is sufficient to support credit growth of 14-15%, supporting future profitability.
→Operating expense growth is controlled at around 9%, helping margin expansion going forward.

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Fundraise plans

Yes

→The bank has already raised ₹15,000 crore through infrastructure bonds and ₹3,500 crore through Tier 2 instruments this financial year.
→There is still some headroom available for further fundraising through infrastructure bonds and Tier 2 instruments.
→The bank continues to focus on normal fundraising via debt instruments but has not planned any equity raise as of now.
→The bank is adequately capitalized currently and can sustain credit growth of 14-15% with existing capital.
→However, the bank will evaluate the need for equity raising in the future based on evolving capital requirements and regulatory frameworks.
→Any decision on equity fundraising will be announced to the market at the appropriate time.

Order book

The transcript provided from Bank of Baroda's Q3 FY2024-25 Analyst and Media Meet does not contain any information regarding current or expected orderbook or pending orders. The discussion primarily revolves around financial performance, deposit and loan growth, margins, asset quality, provisioning, fund raising, product innovation, and regulatory matters. There is no mention or data related to orderbook, pending orders, or similar metrics in the bank's context within the document.

Capex plans

Yes

→The bank's technology expenditure, including both revenue and CapEx, is normally over ₹4,000 crore.
→Around 12% to 15% of operating profit is allocated towards tech spend, covering digital investments.
→The bank plans to continue this level of tech investment in the current financial year and FY26.
→Fundraising for infrastructure: ₹15,000 crore already raised; Tier 2 capital raised ₹3,500 crore.
→Some headroom remains for further fundraising in both infrastructure and Tier 2 debt.
→No immediate plans for equity capital raise as the bank is adequately capitalized.
→Future equity raising will be evaluated considering growth and regulatory frameworks like ECL.
→The bank focuses on sustainable, consistent business and capital management aligned with growth plans.

How does Bank of Baroda rank vs peers in Banks?

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