Mumbai, Jan. 30 -- Bank of Baroda lowered its margin guidance anticipating that higher cost of funds will continue after its profitability for the third quarter ended December narrowed sequentially.

The state-owned lender revised its margin guidance for FY25 to 3.0-3.1% from 3.1-3.2% at a time the bank has gone slower on certain high-yielding segments such as personal and advances to non-bank financial services companies (NBFC).

The public sector bank's global yield on advances fell to 8.35% in Q3 from 8.48% in the previous quarter and 8.51% a year earlier, according to its earnings announced on Thursday. In comparison, the global cost of deposits increased to 5.08% from 4.96% in the previous year but was lower than 5.12% in the previou...