DBT Bureau
Pune, 27 July 2025
Bank of Baroda (BoB), one of India’s leading public sector banks, delivered a resilient financial performance in the first quarter of FY26, with a 15% year-on-year (YoY) rise in operating profit to ₹8,236 crore and steady improvements in asset quality, margins, and retail advances.
Profitability Anchored by Treasury Gains, Non-Interest Income
The bank’s net profit rose modestly by 1.9% YoY to ₹4,541 crore in Q1 FY26, compared to ₹4,458 crore in the same period last year. A key highlight was the 88% YoY surge in non-interest income to ₹4,675 crore, largely driven by a nearly sevenfold jump in treasury income, which stood at ₹2,226 crore.
Net Interest Income (NII) stood at ₹11,435 crore, while the global Net Interest Margin (NIM) came in at 2.91%, with domestic NIM at 3.06%. Improved cost efficiency also played a role in the performance, with the cost-to-income ratio improving by 30 basis points YoY to 48.87%.
Return on Assets (ROA) and Return on Equity (ROE) stood at 1.03% and 15.05%, respectively.
Asset Quality Strengthens Further
Bank of Baroda continued to strengthen its asset quality metrics. Gross Non-Performing Assets (GNPA) declined to 2.28% in Q1 FY26, down 60 bps YoY, while Net NPA reduced to 0.60% from 0.69% a year earlier. The bank maintained a healthy Provision Coverage Ratio (PCR) at 93.18% (including write-offs).
Credit cost remained contained at 0.55%, and the slippage ratio stood at 1.16%, indicating prudent risk management.
Capital and Liquidity Position Remains Robust
The bank’s capital adequacy ratio (CRAR) stood at a strong 17.61% as of June 2025, with Tier-1 capital at 15.15% and CET-1 at 14.12%. On a consolidated basis, CRAR was 18.29%. Liquidity Coverage Ratio (LCR) remained healthy at around 119%.
Retail and RAM Lending Drive Advances Growth
Global advances rose by 12.6% YoY to ₹12.07 lakh crore, while domestic advances increased by 12.4% to ₹9.91 lakh crore. Growth was led by the robust performance of the retail loan book, which expanded 17.5% YoY. Segments such as mortgage (18.6%), auto (17.9%), home (16.5%), education (15.4%), and personal loans (19.5%) all saw strong traction.
The RAM (Retail, Agriculture, MSME) segment continued to dominate the loan mix, now comprising 62.7% of the bank’s advances, up 300 bps YoY. Agriculture loans rose 16.2% YoY to ₹1.62 lakh crore, while the MSME book grew 13.1% to ₹1.36 lakh crore. Corporate advances also grew modestly by 4.2% to ₹3.70 lakh crore.
Deposit Growth Remains Healthy
On the deposit front, global deposits grew by 9.1% YoY to ₹14.36 lakh crore, while domestic deposits rose by 8.1% YoY to ₹12.04 lakh crore. Domestic CASA deposits grew by 5.5% to ₹4.73 lakh crore, and international deposits jumped by 14.8% YoY to ₹2.31 lakh crore.
