Bank of Baroda shares in focus after Q1 profit rises marginally to Rs 4,541 crore. Should you buy or sell?

Shares of state-owned lender Bank of Baroda (BoB) will be in focus on Monday after the bank reported a 2% year-on-year (YoY) increase in standalone net profit to Rs 4,541 crore for the quarter ended June 2025 (Q1 FY26), compared to Rs 4,458 crore in the same period last year.

Net interest income (NII) declined 1.4% YoY to Rs 11,435 crore from Rs 11,600 crore. The bank noted that the NII includes the impact of reclassification of interest on income tax refunds.

Domestic deposits rose 8% YoY to Rs 12.04 lakh crore, while international deposits surged 15% to Rs 2.31 lakh crore from Rs 2.01 lakh crore a year earlier. Total deposits stood at Rs 14.35 lakh crore, up 9% YoY.


Retail advances grew 17% to Rs 2.61 lakh crore, compared to Rs 2.22 lakh crore in Q1 FY25. Domestic gross advances rose 12% to Rs 9.91 lakh crore, and total advances increased 14% to Rs 2.15 lakh crore.

Asset quality improved during the quarter. Gross Non-Performing Assets (GNPA) declined 60 basis points (bps) YoY to 2.28%, while Net NPA dropped 9 bps to 0.60%.

Should you buy, sell, or hold Bank of Baroda's stock? Here’s what brokerages say:

Motilal Oswal

MOSL maintained a 'Neutral' rating on Bank of Baroda, raising the target price from Rs 250 to Rs 260. The brokerage highlighted that healthy NII and other income are supporting earnings momentum.

The bank reiterated its NIM guidance of 2.85%–3.0% for FY26 and aims to recover over Rs 10,000 crore during the fiscal. It also plans to add 300 new branches and has made a 40% provision against stressed accounts. For FY27, MOSL expects RoA at 1.14% and RoE at 16.2%.

Antique

Antique retained a 'Buy' rating with a target price of Rs 290. It noted that profitability was supported by higher treasury gains, despite a sequential dip in the loan book led by the corporate segment.

The brokerage observed a slight uptick in slippages, indicating mild pressure on asset quality, but noted that the bank has maintained RoA above 1% for 12 straight quarters. It values the stock attractively at 0.8x FY26 and 0.7x FY27 estimated book value, and raised earnings estimates by 3% for FY26 and 6% for FY27.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)