Bank of Baroda announced a robust performance for Q2 FY26, with net profit reaching ₹4,809 crores. The bank saw global advances increase by 11.9% YoY, driven by strong RAM growth. Net Interest Margin (NIM) improved to 2.96%. Asset quality remained strong, with Gross NPA ratio improving to 2.16% and Net NPA ratio below 1%. The bank maintains a positive outlook for the full fiscal year, targeting a corporate loan growth of 10%-11%.
Financial Performance Highlights
Bank of Baroda reported a strong financial performance for the second quarter of fiscal year 2026. Key highlights include:
- Net Profit: ₹4,809 crores
- Global Advances Growth: 11.9% YoY
- Domestic Advances Growth: 11.5% YoY
- International Advances Growth: 13.8% YoY
- Net Interest Margin (NIM): 2.96%
- Gross NPA Ratio: 2.16%
- Net NPA Ratio: Below 1% (0.57%)
The bank’s performance reflects a focus on strengthening fundamental parameters and consistent delivery.
Advances and Deposit Growth
The bank experienced significant growth in its advances portfolio, particularly in the RAM (Retail, Agriculture, and MSME) segments:
- Retail Growth: 17.6%
- Agriculture Growth: 17.4%
- MSME Growth: Approximately 14%
Corporate loan growth was 3% YoY but is expected to improve, targeting 10%-11% for the full year. Deposits grew by 9.3%, with a focus on containing bulk deposits. The CASA ratio remained strong at 38.42%.
Asset Quality and Provisions
Bank of Baroda maintained strong asset quality, with the Gross NPA ratio improving to 2.16% and the Net NPA ratio remaining below 1%. The bank has also made a floating provision of ₹400 crores, bringing the total floating provision amount to ₹1,000 crores.
Strategic Outlook and Key Initiatives
The bank is focused on prudent liability management, maintaining a healthy NIM, and continuing to invest in technology and digital transformation. Bank of Baroda is also committed to its ESG mandate, including the creation of BOB Forests. The bank intends to maintain a slippage ratio between 1-1.25% and a credit cost below 0.75%.
Looking Ahead
Bank of Baroda anticipates continued growth in the coming quarters, driven by RAM advances and a focus on core corporate lending. The bank remains well-capitalized and is committed to delivering sustainable profitability.
Source: BSE