Bank of Baroda Shares Face Pressure After Mixed Q4 Result: SEBI RAs Highlight Key Levels to Watch

Bank of Baroda shares are at risk of further downside unless they hold key support levels, analysts said following the bank’s mixed fourth-quarter (Q4) earnings for FY25. 

SEBI-registered analyst Jeet B. Bhayani warned that the stock could face additional declines if it fails to maintain the ₹215–₹210 support zone. 

Meanwhile, A and Y Market Research raised concerns over the bank’s declining net interest income (NII) and contracting net interest margin (NIM), despite an increase in net profit and improved asset quality.

Bhayani's view followed a sharp drop in Bank of Baroda’s shares, which fell more than 10% on Tuesday after the lender reported a 6.6% decline in net interest income (NII) to ₹11,020 crore for Q4 FY25. 

The bank also saw its domestic net interest margin (NIM) shrink to 3.02% from 3.45% a year earlier, reflecting tighter liquidity conditions in the sector. 

Despite this, the bank posted a 3.3% rise in net profit to ₹5,048 crore for the quarter.

Bhayani noted that selling pressure intensified following the results, with the stock closing at ₹221.95 on Tuesday. 

A and Y Market Research echoed these concerns, highlighting the bank’s 19% rise in provisions to ₹1,552 crore, which they suggested could signal potential risks to the bank’s future profitability. 

While the bank’s asset quality improved — gross non-performing assets (NPAs) fell to 2.26% from 2.92% — the decline in NII and NIM raised concerns about the bank’s ability to sustain growth in a challenging macroeconomic environment.

The bank reported a significant rise in retail loan growth, with home loans increasing 17.3% to ₹1.31 lakh crore and auto loans rising 20.3% to ₹46,549 crore. 

However, analysts remain cautious, with A and Y Market Research noting that the stock had recently broken out from resistance but retraced to test the ₹214–₹218 support zone. 

If the stock fails to hold these levels, further downside risks could emerge.

Bank of Baroda's management remains optimistic, with CEO Sanjiv Chadha stating that the bank’s cost of deposits has peaked and it expects to grow its corporate loan book by 10% in FY26. 

Chadha also said that the bank does not see a need to raise equity capital at this stage but may explore fundraising options through perpetual bonds or infrastructure bonds in the future.

Despite these measures, analysts remain focused on the bank’s ability to manage margin pressures and cost increases while capitalizing on retail loan growth. 

On Stocktwits, Sentiment was ‘neutral’ amid ‘high’ message volume.

Bank Of Baroda’s stock has fallen over 7% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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