Bank of Baroda stock fell by 10.12% today, 6th May, 2025, after the bank announced its financial results for the January-March 2025 quarter.
Reason behind the fall
- The bank's net profit increased by 3.3% to 5,048 crore, so investors were disappointed because the profit was helped by higher other income, not by better core banking performance.
- Here, NIM is a key measure of profitability, which was the lowest in 14 quarters, showing that the bank is earning less from its lending business.
- Well, the main reason for the fall was a 6.6% drop in NII, which is the bank's core income from lending, so NII fell to 11,019 crore, much lower than the market.
- Here, the bank reported the higher slippages and write-offs which compared to the previous, signaling ongoing asset quality concerns.
Market impact
- The public sector bank saw its shares fall, so with the PSU bank sector, which is losing about 58,000 crore in market value today.
- The result is disappointing, which has led to a sell-off in Bank of Baroda shares, which is wiping out around INR 10,000 crore in market value.
Also check - Swiggy Shares Jump 12.66% — Find Out Why
Conclusion
In conclusion, the fall in the Bank of Baroda share price, which was mainly due to weaker than expected core income, pressure on profit marginand concern despite a small rise in net profit, and asset quality.
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