Mumbai, July 28 (MExN): State-owned Bank of Baroda (BoB) has reported a consolidated net profit of INR 1,278 crore for the quarter ended June 30, 2026, as the lender absorbed the impact of a one-off exceptional item related to a settlement payout. Excluding this extraordinary charge, the bank’s net profit would have stood at INR 5,528 crore.
The bank’s Return on Assets (ROA) for the first quarter of FY27 stood at 0.25%, though it would have been significantly higher at 1.10% without the exceptional item. Similarly, Return on Equity (ROE) came in at 3.89%, but would have been 16.57% on a normalized basis.
BoB’s global business grew by 15.4% year-on-year (YoY) to reach INR 30,50,457 crore, driven by a robust 17.4% YoY increase in global advances. Domestic advances rose 16.1% YoY, while the retail, agriculture, and MSME (RAM) portfolio—which now constitutes 62.9% of total advances—expanded by 16.5% YoY. Organic retail advances saw a strong 18.4% YoY growth, propelled by auto loans (up 25.3%), mortgage loans (27.4%), home loans (14.7%), and education loans (10.8%).
On the liabilities side, global deposits grew 13.8% YoY, with domestic deposits rising 14.7%. The bank’s domestic Current Account and Savings Account (CASA) deposits registered a robust 10% YoY growth, standing at INR 5,21,149 crore.
Net Interest Income (NII) for the quarter expanded by 9.5% YoY to INR 12,524 crore, while non-interest income came in at INR 3,470 crore, supported by treasury income (INR 893 crore), recoveries from written-off accounts (INR 1,006 crore), and PSLC income (INR 280 crore). Operating expenses remained flat YoY at INR 7,868 crore, helping the bank post an operating profit of INR 8,127 crore.
Asset quality continued to improve, with Gross Non-Performing Assets (GNPA) declining by 29 basis points (bps) YoY to 1.99%, while Net NPA fell by 10 bps to 0.50%. The Provision Coverage Ratio (PCR) remained healthy at 93.28% (including TWO) and 75.07% (excluding TWO). The slippage ratio improved by 25 bps YoY to 0.91%, and credit cost reduced sharply to 0.29% from 0.55% in the year-ago period.
The bank’s cost of deposits fell by 39 bps YoY to 4.66% in Q1FY27. Global Net Interest Margin (NIM) stood at 2.77%, while domestic NIM was 2.93% for the quarter.
BoB’s capital position remained robust, with the Capital Adequacy Ratio (CRAR) at 16.30% as of June 30, 2026.
