Quarterly Financial Results
Bank of Baroda Q1 FY27 Results: Core Business Growth Remains Strong Despite Exceptional Provision Impact
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- Bank of Baroda reported healthy business growth during the quarter ended 30 June 2026, with global business increasing 15.4% YoY to ₹30.50 lakh crore, supported by robust growth in deposits and advances.
- While reported net profit declined due to a one-time exceptional provision, the bank stated that profit excluding the exceptional item stood at ₹5,528 crore, reflecting continued strength in its core banking operations.
- Asset quality also improved with lower GNPA and NNPA ratios.Â
PRICE-SENSITIVE TRIGGER
Event: Bank of Baroda released its Investor Presentation along with the financial results for the quarter ended 30 June 2026.
Type: Quarterly Financial Results
Impact: Neutral
Immediate Effect: The bank reported strong growth across deposits and advances with improving asset quality. However, reported profitability declined significantly due to an exceptional provision of approximately ₹5,680 crore recognised during the quarter.Â
Metrics:
Key Financial Metrics:
- Global Business: ₹30.50 lakh crore (▲15.4% YoY)
- Global Deposits: ₹16.34 lakh crore (▲13.8% YoY)
- Global Advances: ₹14.17 lakh crore (▲17.4% YoY)
- Net Interest Income (NII): ₹12,524 crore (▲9.5% YoY)
- Non-Interest Income: ₹3,470 crore (▼25.8% YoY)
- Operating Profit: ₹8,127 crore (▼1.3% YoY)
- Reported Profit Before Tax: ₹1,804 crore (▼71.2% YoY)
- Reported Net Profit: ₹1,278 crore (▼71.8% YoY)
- Net Interest Margin (Global):Â 2.77%
- Return on Assets (Reported):Â 0.25%
- Return on Equity (Reported):Â 3.89%
- Gross NPA Ratio: 1.99% (improved from 2.28%)
- Net NPA Ratio: 0.50% (improved from 0.60%)
- Capital Adequacy Ratio:Â 16.30%
Highlight:
- Excluding the exceptional provision, Bank of Baroda reported an adjusted net profit of ₹5,528 crore, adjusted RoA of 1.10%, adjusted RoE of 16.57% and adjusted Book Value per Share of ₹264.5, indicating that the bank’s underlying operating performance remained resilient.Â
What Happened ?
Bank of Baroda delivered another quarter of healthy balance sheet expansion with double-digit growth in both deposits and advances. Retail, agriculture and MSME (RAM) lending continued to remain the primary growth drivers, while asset quality further strengthened through lower non-performing assets.
However, the reported earnings were significantly affected by a one-time exceptional provision of approximately ₹5,680 crore (USD 600 million equivalent) recorded during the quarter. Excluding this exceptional item, the bank’s profitability remained broadly in line with its recent operating performance.Â
key details
Business Growth & Operational Performance:
- Global business increased 15.4% YoY to ₹30.50 lakh crore.
- Global deposits grew 13.8% YoY to ₹16.34 lakh crore.
- Global advances increased 17.4% YoY to ₹14.17 lakh crore.
- Domestic advances rose 16.1% YoY, supported by healthy credit demand.
- Retail advances expanded 18.4% YoY.
- MSME advances grew 20.3% YoY.
- Agriculture advances increased 18.7% YoY.
- International advances registered 23.3% YoY growth.
- Retail, Agriculture and MSME (RAM) portfolio accounted for 62.9% of domestic advances.Â
Note:
- The quarter reflected continued business momentum across core lending segments despite a moderation in global Net Interest Margin and softer non-interest income.
- Loan growth remained broad-based across retail, agriculture and MSME portfolios.
Risk Analysis
Summary:
- Although the bank continues to report healthy business growth and improving asset quality, the exceptional provision materially reduced reported earnings for the quarter. Investors will closely monitor future provisioning requirements and margin trends.
Key Risks:
- Reported profitability was significantly impacted by an exceptional provision.
- Global Net Interest Margin moderated to 2.77%.
- Non-interest income declined due to lower treasury income.
- Domestic CASA ratio declined to 37.72%.
- Capital adequacy reduced marginally compared to the previous year but remained comfortably above regulatory requirements.
- Sustaining loan growth while maintaining margins will remain an important focus area.Â
Worst Case:
- If additional exceptional provisions or weaker treasury income continue in subsequent quarters, reported earnings could remain under pressure despite continued growth in deposits and advances.
Risk Level: Medium
Company Commentary
- Global business crossed ₹30.50 lakh crore, reflecting sustained franchise growth.
- Net Interest Income increased 9.5% YoY to ₹12,524 crore.
- Retail, Agriculture and MSME lending continued to be the key growth engine.
- Gross NPA declined to 1.99%, while Net NPA improved to 0.50%.
- Excluding the exceptional provision, adjusted net profit stood at ₹5,528 crore, with adjusted RoA of 1.10% and adjusted RoE of 16.57%.
- The bank maintained a healthy Capital Adequacy Ratio of 16.30%, supporting future business expansion.Â
Official Exchange Filing: Bank of Baroda Limited
