Bank of Baroda Q1FY26 Net Profit Rises 1.9% YoY to ₹4,541 Crore Despite Flat NII

Mumbai, July 25, 2025 — Bank of Baroda (NSE: BANKBARODA, BSE: 532134) posted a 1.9% year-on-year (YoY) growth in standalone net profit for the first quarter of FY26, reaching ₹4,541 crore, despite a marginal decline in net interest income (NII) due to lower interest on tax refunds and rising interest costs.

Financial Highlights

• Net profit rose slightly to ₹4,541 crore, up 1.9% from ₹4,458 crore in Q1FY25.
• Net Interest Income (NII) declined by 1.4% year-on-year, falling to ₹11,435 crore from ₹11,600 crore.
• Non-interest income jumped sharply by 88%, reaching ₹4,675 crore, compared to ₹2,487 crore a year ago.
• Operating profit increased by 15% year-on-year to ₹8,236 crore, up from ₹7,161 crore.
• The Gross Non-Performing Asset (GNPA) ratio improved to 2.28%, down 60 basis points from 2.88%.
• The Net NPA (NNPA) ratio also improved, coming down to 0.60%, a 9 basis point reduction from 0.69%.
• Capital adequacy ratio (Standalone) strengthened to 17.61%, rising 79 basis points from 16.82%.
• Return on Assets (RoA) fell slightly to 1.03%, down 10 basis points from 1.13%.
• Return on Equity (RoE) declined to 15.05%, down 240 basis points from 17.45%.

Note: NII was impacted by a lower contribution from income tax refunds at ₹370 crore vs ₹0 crore in Q1FY25.

Business Performance

• The bank’s total global business (deposits + advances) rose 10.7% year-on-year, reaching ₹26.43 lakh crore as of June 2025.
• Global deposits stood at ₹14.36 lakh crore, up 9.1% from the previous year.
• Global advances surged 12.6%, touching ₹12.07 lakh crore.
• Domestic deposits increased to ₹12.04 lakh crore, marking an 8.1% YoY growth from ₹11.14 lakh crore.
• International deposits rose sharply by 14.8%, reaching ₹2.31 lakh crore, up from ₹2.01 lakh crore.
• Retail advances saw strong momentum, climbing 17.5% YoY to ₹2.61 lakh crore, from ₹2.22 lakh crore.

Asset Quality

Bank of Baroda maintained strong asset quality with a sharp drop in GNPA to 2.28% and NNPA to 0.60%. Fresh slippages rose to ₹3,476 crore in Q1FY26 vs ₹2,787 crore in Q1FY25. However, the provision coverage ratio (PCR) remained healthy at 93.18%.

Segment-Wise NPA Exposure (Q1FY26)

• The MSME segment had the highest non-performing assets (NPAs) at ₹10,619 crore.
• Retail segment NPAs stood at ₹5,224 crore.
• The agriculture sector accounted for ₹7,876 crore in NPAs.
• Corporate NPAs remained minimal at just ₹55 crore.
• The bank’s international portfolio reported NPAs of ₹3,690 crore.

High exposure to MSME and agri NPAs continued, while corporate NPAs significantly declined.

Subsidiary Highlights

• IndiaFirst Life Insurance: Gross premium rose 11.6% YoY to ₹1,564 crore; net business APE improved rank to 11th among private players.
• Baroda BNP Paribas AMC: AAUM up 28.4% YoY to ₹52,933 crore; PAT rose to ₹20.45 crore from ₹3.53 crore.
• BOBCARD: Active cards reached 30.26 lakh; card spends stood at ₹9,436 crore.
• BOB Capital Markets: Net loss widened to ₹5.53 crore due to a drop in investment banking revenue.

Management Commentary

The presentation did not include direct commentary from the management. However, the performance reflects sustained growth in retail and MSME credit, strong operational control, and a continued digital transformation push.

Digital & ESG Initiatives

• 354 crore digital transactions processed in Q1.
• CBDC wallets grew 43% YoY.
• UPI-QR and Sound Box deployments surged.
• ₹1,362 crore of green deposits mobilized.
• ESG rating retained as ‘Strong’ by ESGRisk.ai.
• Net-zero emissions target set for 2057.

Strategic Outlook

With improving asset quality, strong capital buffers (CRAR at 17.61%), and robust growth in the retail franchise and digital offerings, Bank of Baroda remains well-positioned to capitalise on credit demand across sectors while sustaining profitability in a rising cost environment.

Bank of Baroda Stock Performance

Bank of Baroda shares closed at ₹243.30, representing a 1.44% dip on July 25, 2025. Bank of Baroda shares have declined 0.84% over the last year, increased 0.86% year-to-date, and risen 1.77% in the previous month.

The stock opened at ₹246.25 and touched an intraday high of ₹249.00 and a low of ₹242.41. The company’s market capitalisation stands at ₹1.26 lakh crore. Over the last 52 weeks, the stock has touched a high of ₹266.95 and a low of ₹190.70.

About Bank of Baroda

Bank of Baroda is a leading public sector bank listed on the NSE and BSE. Headquartered in Vadodara, it offers a broad portfolio of financial services in India and overseas, serving retail, corporate, MSME, and rural segments.

REF:https://nsearchives.nseindia.com/corporate/BANKBARODA_25072025163740_investorpresentation.pdf

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