Bank of Baroda (BOB) on Friday reported an 8% fall in net profit to Rs 4,809 crore for the September quarter, compared with Rs 5,238 crore in the year-ago period, because of a 32% decline in non-interest income. The operating profit stood at Rs 7,576 crore, down 20% YoY.
Other incomes fell to Rs 3,515 crore from Rs 5,166 crore. Net interest income (NII) increased 2.7% YoY to Rs 11,954 crore.
The profit declined despite provisioning being 47% lower at Rs 1,232 crore, from Rs 2,336 crore a year back. It also included a Rs 171-crore of write back in non-performing investment for the latest quarter.
“Our Q2FY26 operating profit reflects a normalised performance, especially when adjusted for last year’s one-off NCLT recovery and softer treasury income this quarter. Excluding the previous year’s one-off item, our net profit would reflect a 22% year-on-year growth and a steady 6% sequential uptick— underscoring the resilience and momentum in our core business,” said Debadutta Chand, MD & CEO.
Despite a fall in net profit, the bank beat analyst estimates that had projected a net profit of Rs 4,050 crore, according to Bloomberg. Results came post the market hours. The stock on Friday hit a new 52-week high at 280.70, before closing 2% higher at Rs 278.30 per share on the BSE.
“We have maintained a sharp focus on RAM — retail, agriculture, and MSME — which now makes up 62% of our total book, a 300-bps improvement year-on-year,” said Chand, who is expecting the RAM book to account for 65% going forward. “Within retail, we saw a strong momentum in mortgages, personal loans, auto & home loans, and even education loans— all growing in double digits.”
Chand said the organic growth has been robust across segments, with retail growing 17.6%, agriculture 17.4%, and MSME 13.9%. “On the corporate side, our 3% growth reflects a deliberate strategy of selective refinancing and organic expansion, with sequential growth at 8%,” Chand said.
The net interest margin (NIM) stood at 2.96%, against 3.11% in the same quarter last year. Total deposits rose 9.3% YoY to Rs 15,00,012 crore. Domestic deposits stood at Rs 12,71,992 crore (Q2 FY26), compared with Rs 11,59,919 crore a year back. International deposits were at Rs 2,28,020 crore (Rs 2,12,695 crore).
“We added Rs 400 crore to floating provisions this quarter, taking the total buffer to Rs 1,000 crore. Despite geopolitical uncertainties, we maintain our guidance of slippage ratio anywhere between 1% and 1.25%, and credit cost below 0.75%,” said Chand. Bank of Baroda continued to strengthen asset quality metrics with a year-on-year improvement in GNPA to 2.16% and NNPA to 0.57%, both well within the bank’s comfort range.
On the capital front, CET1 stood at 13.36%, Tier 1 at 14.15%, and CRAR at a healthy 16.54%, with a strong liquidity coverage ratio of 121%. The provision coverage remains robust at 93.21%, and credit cost was contained at 0.29%. Slippages have moderated to 0.91%.