Bank of Baroda has released its financial results for the quarter ended 30th June 2026, showcasing a sustained and strong growth momentum coupled with a healthy asset quality. The bank’s global business expanded significantly, reaching INR 30,50,457 crore and registering a year-on-year (YoY) growth of 15.4%.
On the business performance front, the bank’s global advances grew by 17.4% YoY, while domestic advances recorded a 16.1% YoY increase, touching INR 11,50,906 crore. Total global advances stood at INR 14,16,898 crore, bolstered by international advances which grew by 23.3% YoY to reach INR 2,65,992 crore. Organic retail advances witnessed an impressive 18.4% YoY growth, driven by robust performances across segments including auto loans at 25.3%, mortgage loans at 27.4%, home loans at 14.7%, and education loans at 10.8%. Furthermore, the retail, agriculture, and MSME (RAM) portfolio grew by 16.5% YoY, accounting for 62.9% of total advances, with agriculture loans rising by 18.7% YoY to INR 1,91,989 crore, organic MSME portfolios growing by 20.3% YoY to INR 1,63,264 crore, and corporate advances increasing by 15.3% YoY to INR 4,27,082 crore.
Deposit growth remained equally robust, with global deposits rising by 13.8% YoY to INR 16,33,559 crore and domestic deposits advancing by 14.7% YoY to INR 13,81,535 crore. Domestic CASA deposits registered a solid 10% YoY growth, reaching INR 5,21,149 crore, while international deposits grew by 8.9% YoY to stand at INR 2,52,024 crore.
Regarding profitability and income metrics, the Net Interest Income (NII) for the quarter expanded by 9.5% YoY to INR 12,524 crore. Non-interest income was recorded at INR 3,470 crore, which was augmented by a treasury income of INR 893 crore, recovery from written-off accounts amounting to INR 1,006 crore, and PSLC income of INR 280 crore. Operating expenses remained well-controlled at INR 7,868 crore, marking a slight decline of 0.1% YoY, resulting in an operating profit of INR 8,127 crore. The bank’s quarterly net profit stood at INR 1,278 crore after absorbing the impact of a one-off exceptional settlement payout item; excluding this payout, the net profit would have been INR 5,528 crore. Consequently, the Return on Assets (ROA) was 0.25% (or 1.10% excluding the exceptional item), and the Return on Equity (ROE) stood at 3.89% (or 16.57% excluding the exceptional item). The cost of deposits for Q1FY27 improved to 4.66%, reducing by 12 basis points sequentially and 39 basis points YoY. The global Net Interest Margin (NIM) stood at 2.77% and the domestic NIM at 2.93%.
Asset quality indicators showed continued strength as the Gross NPA ratio improved by 29 basis points YoY down to 1.99% from 2.28% in Q1FY26, while the Net NPA ratio decreased by 10 basis points YoY to 0.50%. The bank’s balance sheet remains highly robust, supported by a healthy Provision Coverage Ratio (PCR) of 93.28% including written-off accounts (TWO) and 75.07% excluding TWO. Additionally, the slippage ratio declined by 25 basis points YoY to 0.91%, and credit costs moderated to 0.29% compared with 0.55% in Q1FY26.
Finally, in terms of capital adequacy, the bank maintained a solid capital position with a CRAR ratio of 16.30% as of 30th June 2026. Tier-I capital stood at 14.41% (comprising CET-1 at 13.90% and AT1 at 0.51%) and Tier-II capital stood at 1.89%. On a consolidated basis, the CRAR and CET-1 stood at 16.70% and 14.36% respectively, while the standalone quarterly average Liquidity Coverage Ratio (LCR) was approximately 127%.
