Bank of Baroda Q1 Results: Profit falls 72% to Rs 1,278 crore on one-off settlement hit

Bank of Baroda reported a sharp fall in June-quarter profit after absorbing a one-off exceptional item, even as the lender showed strong loan growth and stable asset quality. The state-owned bank posted net profit of Rs 1,278 crore for the quarter ended June 30, 2026, down 71.8% from Rs 4,541 crore in the same quarter last year. Sequentially, profit fell from Rs 5,616 crore in Q4FY26.

The bank said the quarter included an exceptional item of $600 million, equivalent to Rs 5,680 crore. Excluding the settlement payout, net profit would have stood at Rs 5,528 crore. Profit before tax fell 71.2% year-on-year to Rs 1,804 crore from Rs 6,270 crore. Tax provision stood at Rs 526 crore, compared with Rs 1,728 crore a year earlier.

Net interest income rose 9% YoY to Rs 12,524 crore from Rs 11,435 crore. Interest income increased 7% to Rs 33,211 crore, while interest expenses rose 5% to Rs 20,686 crore. Non-interest income declined 26% YoY to Rs 3,470 crore from Rs 4,675 crore. The bank said non-interest income was supported by treasury income of Rs 893 crore, recovery from written-off accounts of Rs 1,006 crore and PSLC income of Rs 280 crore.


Operating income fell marginally to Rs 15,995 crore from Rs 16,109 crore. Operating expenses were almost flat at Rs 7,868 crore, compared with Rs 7,873 crore a year earlier. Operating profit stood at Rs 8,127 crore, down 1% from Rs 8,236 crore.

Total provisions and contingencies rose to Rs 6,323 crore, mainly due to the exceptional item. Provision for NPA and bad debts written off declined 38% to Rs 1,043 crore from Rs 1,686 crore.

Loan growth stays strong
Bank of Baroda's global business rose 15% YoY to Rs 30,50,457 crore as of June 2026. Global advances grew 17% YoY to Rs 14.16 lakh crore. Domestic advances increased 16% to Rs 11.50 lakh crore, while international advances rose 23% to Rs 2.65 lakh crore.

Retail, agriculture and MSME loans continued to drive growth. The bank’s RAM portfolio grew 16% YoY and accounted for 62.9% of advances.

Organic retail advances rose 18% to Rs 3.09 lakh crore. Auto loans grew 25%, mortgage loans rose 27%, home loans increased 15% and education loans grew 11%. Agriculture loans rose 19% YoY to Rs 1.91 lakh crore, while the organic MSME portfolio grew 20% to Rs 1.63 lakh crore. Corporate advances increased 15% to Rs 4.27 lakh crore.

Global deposits rose 14% YoY to Rs 16.33 lakh crore. Domestic deposits increased 15% to Rs 13.81 lakh crore, while international deposits rose 9% to Rs 2.52 lakh crore. Domestic CASA deposits grew 10% YoY to Rs 5.21 lakh crore.

Asset quality improves YoY

Bank of Baroda's asset quality improved from a year earlier, though bad-loan ratios rose sequentially. Gross NPA ratio stood at 1.99% in Q1FY27, compared with 2.28% in Q1FY26 and 1.89% in Q4FY26. Net NPA ratio declined to 0.50% from 0.60% a year earlier, but was higher than 0.45% in the March quarter.

Provision coverage ratio stood at 93.28% with technical write-offs and 75.07% without them. The slippage ratio declined 25 basis points YoY to 0.91%. Credit cost stood at 0.29%, compared with 0.55% in the same quarter last year.

Global net interest margin stood at 2.77% for Q1FY27, compared with 2.91% a year earlier and 2.89% in Q4FY26. Domestic NIM stood at 2.93%. Cost of deposits declined to 4.66%, down 12 basis points sequentially and 39 basis points year-on-year.

The bank's capital adequacy ratio stood at 16.30% as of June 30, 2026. Tier-I capital stood at 14.41%, including CET-1 of 13.90% and AT1 of 0.51%. Tier-II capital stood at 1.89%. The quarterly average liquidity coverage ratio was about 127%.

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