Bank of Baroda
NII growth eases as NIM declines: Interest income increased 11% to Rs 35085.33 crore, while interest expenses moved up 13% to Rs 22059.06 crore in Q2FY2027. NII improved at slower pace of 9% to Rs 13026.27 crore in Q2FY2027 compared with 10% growth in Q1FY27.
Margins declines: The bank has shown 20 bps YoY decline in cost of deposits to 4.71%, while yield on advances declined 40 bps YoY to 7.41% in Q2FY2027. Thus, the NIM has eased 20 bps YoY to 2.76%, while fell 1 bps qoq to 2.76% in Q2FY2027.
Strong growth in treasury, forex and recoveries income: The non-interest income of the bank increased 58% to Rs 5540.72 crore in Q2FY2027. Bank has posted 9% decline in core fee income to Rs 1637 crore, while the treasury income improved 348% to Rs 3731 crore and forex income moved up 43% to Rs 362 crore. Further, the recoveries income improved 48% to Rs 729 crore and other income jumped to Rs 176 crore in Q2FY2027.
Expense ratio improves: The operating expenses of the bank increased 7% to Rs 8476.88 crore, as other expenses moved up 2% to Rs 3894.16 crore, while employee expenses rose 13% to Rs 4582.72 crore in Q2FY2027. Cost-to-income ratio improved to 45.7% in Q2FY2027 compared with 51.0% in Q2FY2026. Operating Profit moved up 33% to Rs 10090.11 crore.
Provisions and contingencies increase: The bank has shown 93% increase in provisions to Rs 2382 crore. The loan loss provisions moved up 119% to Rs 1935 crore and other provisions jumped 2779% to Rs 403 crore. The bank has written back investment provisions of Rs 381 crore, while standard asset provisions declined 16% to Rs 424 crore in Q2FY2027.
PBT increased 22% to Rs 7708.28 crore in Q2FY2027. PBT after gains of Rs 1340 crore from stake sale in NSE, jumped 43% to Rs 9048.28 crore. Effective tax rate increased to 27.8% in Q2FY2027 from 24.2% in Q2FY2026. Net Profit increased 36% YoY to Rs 6531.54 crore in Q2FY2027.
Asset quality improves: The bank has improved asset quality in Q2FY2027.
The fresh slippage of loans stood at Rs 2847 crore in Q2FY2027 compared with Rs 3422 crore in previous quarter and Rs 3065 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 1240 crore and upgrades were at Rs 1015 crore, while the write-off of loans was at Rs 1845 crore in Q2FY2027. Provision coverage ratio improved to 94.65% at end September 2026 compared to 93.28% a quarter ago and 93.21% a year ago. The capital adequacy ratio of the bank stood at 16.6% with Tier I ratio at 14.7% at end September 2026. The risk weighted assets of the bank has increased 13% YoY to Rs 1025479 crore end September 2026.| Asset Quality Indicators: Bank of Baroda | |||||||||
| ? | Sep-26 | Jun-26 | Mar-26 | Dec-25 | Sep-25 | Variation | ? | ||
| QoQ | YTD | YoY | ? | ||||||
| Gross NPA (Rs Crore) | 26896.55 | 28150.42 | 27058.59 | 27399.44 | 27599.75 | -4 | -1 | -3 | ? |
| Net NPA (Rs Crore) | 5520.47 | 7017.10 | 6315.56 | 7614.96 | 7140.88 | -21 | -13 | -23 | ? |
| % Gross NPA | 1.78 | 1.99 | 1.89 | 2.04 | 2.16 | -21 | -11 | -38 | ? |
| % Net NPA | 0.37 | 0.50 | 0.45 | 0.57 | 0.57 | -13 | -8 | -20 | ? |
| % PCR | 94.65 | 93.28 | 93.94 | 92.73 | 93.21 | 137 | 71 | 144 | ? |
| % CRAR - Basel III | 16.61 | 16.30 | 15.82 | 15.29 | 16.54 | 31 | 79 | 7 | ? |
| % CRAR - Tier I - Basel III | 14.70 | 14.41 | 13.64 | 13.10 | 14.15 | 29 | 106 | 55 | ? |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | |||||||||
Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 17% YoY to Rs 3257883 crore end September 2026, as advances growth improved to 18% to Rs 1512448 crore and deposits growth improved to 16% to Rs 1745435 crore at end September 2026. With the faster growth in advances, the credit to deposit ratio rose to 86.7% at end September 2026 from 85.3% at end September 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 10% YoY to Rs 534067 crore at end September 2026. The domestic current account deposits moved up 15% to Rs 92086 crore, while saving account deposits increased 10% to Rs 447428 crore end September 2026. The domestic CASA ratio eased to 36.4% at end September 2026 compared to 38.4% at end September 2025, while declined from 37.7% a quarter ago. The term domestic deposits have increased 20% to Rs 944006 crore end September 2026. The overseas deposits increased 15% to Rs 261915 crore end September 2026.
Strong loan growth: Within the loan book, the retail loans increased 19% YoY to Rs 324040 crore at end September 2026, while credit to agriculture increased 19% to Rs 201946 crore and MSME credit increased 21% to Rs 175207 crore. The corporate credit rose 6% to Rs 486751 crore end September 2026. The overseas credit has increased 40% to Rs 324504 crore end September 2026. The share of retail, agriculture and MSME (RAM) improved to 59.0% at end September 2026 compared to 56.1% at end September 2025.
Investment book of the bank increased 15% YoY to Rs 449912 crore at end September 2026. The SLR book moved up 19% to Rs 366534 crore, while non SLR book moved up 7% to Rs 68100 crore at end September 2026. The AFS book dipped 17% to Rs 61032 crore, while HTM book increased 22% to Rs 323103 crore at end September 2026. The duration of the overall investment portfolio stood at 4.71 years end September 2026 compared with 4.05 years at end September 2025. The duration of the AFS investment portfolio stood at 3.17 years end September 2026 compared with 2.85 years at end September 2025.
Branch expansion: The bank has added 17 branches and added 4 ATMs in Q2FY2027, taking overall tally to 8677 branches and 11633 ATM`s end September 2026.
Book value of the bank stood at Rs 295.1 per share at end September 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 281.4 per share at end September 2026.
Financial Performance H1FY2027:
Bank has posted 16% decline in net profit to Rs 7809.93 crore in the half year ended September 2026 (H1FY2027) due on one off exceptional expense relating to out of the court settlement with United Arab Emirates-based NMC Group by paying US$ 600 million (equivalent to Rs 5680.23 crore). The net interest income increased 9% to Rs 25551.36 crore, while non-interest income moved up 10% to Rs 9011.09 crore, leading net total income to increase 9% to Rs 34562.45 crore in H1FY2027. The operating expenses increased 4% to Rs 16345.09 crore, while provision and contingencies dipped 5% to Rs 3024.86 crore. PBT increased 20% to Rs 15192.50 crore in H1FY2027. However, PBT declined 14% to Rs 10852.27 crore EO expenses relating to NMC group net of gains from stake sale. The cost-to-income ratio improved to 47.3% in H1FY2027 compared to 49.9% in H1FY2026. An effective tax rate rose to 28.0% in H1FY2027 compared to 25.9% in H1FY2026. The net profit has declined 16% to Rs 7809.93 crore in H1FY2027.| Bank of Baroda: Results | |||||||||
| Particulars | 2609 (3) | 2509 (3) | Var % | 2609 (6) | 2509 (6) | Var % | 2603 (12) | 2503 (12) | Var % |
| Interest Earned | 35085.33 | 31510.81 | 11 | 68296.05 | 62602.30 | 9 | 126993.65 | 122300.61 | 4 |
| Interest Expended | 22059.06 | 19557.20 | 13 | 42744.69 | 39213.91 | 9 | 79311.19 | 75782.96 | 5 |
| Net Interest Income | 13026.27 | 11953.61 | 9 | 25551.36 | 23388.39 | 9 | 47682.46 | 46517.65 | 3 |
| Other Income | 5540.72 | 3514.95 | 58 | 9011.09 | 8189.48 | 10 | 15756.84 | 15788.36 | 0 |
| Net Total Income | 18566.99 | 15468.56 | 20 | 34562.45 | 31577.87 | 9 | 63439.30 | 62306.01 | 2 |
| Operating Expenses | 8476.88 | 7892.61 | 7 | 16345.09 | 15765.45 | 4 | 31180.32 | 29871.38 | 4 |
| Operating Profits | 10090.11 | 7575.95 | 33 | 18217.36 | 15812.42 | 15 | 32258.98 | 32434.63 | -1 |
| Provisions & Contingencies | 2381.83 | 1232.47 | 93 | 3024.86 | 3199.41 | -5 | 7148.81 | 5980.25 | 20 |
| Profit Before Tax | 7708.28 | 6343.48 | 22 | 15192.50 | 12613.01 | 20 | 25110.17 | 26454.38 | -5 |
| EO | 1340.00 | 0.00 | - | -4340.23 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 9048.28 | 6343.48 | 43 | 10852.27 | 12613.01 | -14 | 25110.17 | 26454.38 | -5 |
| Provision for tax | 2516.74 | 1534.09 | 64 | 3042.34 | 3262.26 | -7 | 5089.11 | 6873.23 | -26 |
| PAT | 6531.54 | 4809.39 | 36 | 7809.93 | 9350.75 | -16 | 20021.06 | 19581.15 | 2 |
| EPS*(Rs) | 43.0 | 37.2 | ? | 42.2 | 36.1 | ? | 38.7 | 37.8 | ? |
| Equity | 1035.5 | 1035.5 | ? | 1035.5 | 1035.5 | ? | 1035.5 | 1035.5 | ? |
| Adj BV (Rs) | 281.4 | 248.4 | ? | 281.4 | 248.4 | ? | 264.6 | 229.0 | ? |
| * EPS and Adj BV are calculated on diluted equity as given for each year excluding EO and relevant tax. Face Value: Rs 2, Figures in Rs crore | |||||||||
| Source: Capitaline Corporate Database | |||||||||
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