Bank of Baroda reported a 4.5% year-on-year increase in net profit, reaching ₹5,055 crore for Q3 FY2026. Global advances grew by 14.7%, while domestic advances increased by 13.6%. The bank’s gross NPA ratio improved to 2.04%, and net NPA stood at 0.57%. The board maintained its full-year margin guidance of 2.85% to 3%. Focus on RAM advances continues, with retail, agriculture, and MSME sectors showing strong growth.
Financial Performance
Bank of Baroda announced its financial results for Q3 FY2026, highlighting a net profit of ₹5,055 crore, a 4.5% increase year-on-year. Operating profit for the quarter stood at ₹7,377 crore. Return on assets remained above 1% at 1.09%, and return on equity was 15.59% for the quarter. For the nine months of FY2026, operating profit reached ₹23,190 crore and net profit stood at ₹14,405 crore. Return on assets for this period remained above 1% at 1.05%, and return on equity was 14.81%.
Advances and Deposits
Global advances grew by 14.7% year-on-year, with domestic advances growing by 13.6% and international advances by 19.3%. Organic retail book grew by 17.4%, agriculture by 19%, and organic MSME by 16.4%. Corporate loans increased by 8.1%. Total deposits grew by 10.3%, with international deposits increasing by 5.7% and domestic deposits by 11.1%. Domestic CASA deposits grew by 8.6%, and term deposits registered 12.7% growth. As of December 31, 2025, the bank’s domestic credit deposit ratio was 83.89%, and the CASA ratio was 38.45%.
Asset Quality
Gross NPA ratio improved by 39 bps year-on-year to 2.04%. Net NPA ratio was below 1% at 0.57%. Provision coverage ratio, including TWO, was 92.73%. The slippage ratio for Q3 FY2026 reduced by 4 bps year-on-year and stood at 0.86%. Credit cost remained low at 0.17% for the quarter.
Capital Adequacy
The bank’s capital position remained strong, with CET-1 at 12.45%, Tier-1 at 13.10%, and overall CRAR at 15.29% as of December 31, 2025. The LCR was healthy at approximately 116%. Adjusted for the profits of 9 months FY 2026, capital adequacy would have been 16.47%.
Guidance
The management reiterated its guidance for the full year. Credit growth is expected to be between 11-13%, with potential upside. The deposit growth target is 9-11%. Net interest margin is projected to be between 2.85% and 3%. The credit cost guidance has been revised downward to below 0.60%. The bank aims to maintain ROA above 1% and ROE between 16-18%.
Source: BSE
