Bank of Baroda Reports Q1 FY26 Net Profit Decline

Bank of Baroda reported a decline in consolidated net profit for Q1 FY26. The bank's net interest income increased by 12.5% YoY, while non-interest income fell by 4.2%. The bank's net interest margin contracted by 54 basis points YoY to 2.55%. The bank aims to achieve 9-10% growth in corporate loans for the full year.

Bank of Baroda (BoB) reported a decline in consolidated net profit for the first quarter of the fiscal year 2026 (Q1 FY26). The state-owned bank's net profit decreased by 1.8% year-on-year (YoY) to ₹4,541 crore, falling short of market expectations [2].

Despite the profit decline, BoB's net interest income (NII) increased by 12.5% YoY, reaching ₹11,435 crore. However, non-interest income fell by 4.2% YoY to ₹4,675 crore, driven by a nearly sevenfold jump in treasury income [2]. This increase in treasury income, which stood at ₹2,226 crore, was a significant contributor to the bank's overall non-interest income growth [2].

The bank's net interest margin (NIM) contracted by 54 basis points YoY to 2.55% during the quarter. This decline was primarily attributed to a 1.4% dip in NII and a 2.28% gross non-performing assets (GNPA) ratio [2]. The bank's operating profit increased by 15% YoY to ₹8,236 crore, driven largely by the surge in non-interest income [2].

Bank of Baroda aims to achieve 9-10% growth in corporate loans for the full year. To achieve this, the bank is focusing on expanding its retail, agriculture, and MSME (micro, small, and medium enterprises) segment, which constituted 62.7% of total advances in the quarter [2]. The bank's global advances grew 12.6% YoY to ₹12.07 lakh crore, with domestic advances increasing 12.4% to ₹9.91 lakh crore [2].

The bank's capital adequacy ratio (CAR) stood at 17.61%, with the consolidated CAR at 18.29%. The bank's liquidity coverage ratio (LCR) was around 119%, indicating a strong liquidity position [2]. BoB's global deposits grew 9.1% YoY to ₹14.36 lakh crore, with domestic deposits rising 8.1% to ₹12.04 lakh crore [2].

References:
[1] Reuters. "India's equity benchmarks set to open near previous session's one-month closing low." Yahoo Finance. https://sg.finance.yahoo.com/news/indias-equity-benchmarks-set-open-024103559.html
[2] CNBC-TV18. "Bank of Baroda's Q1 FY26 results: Profit up 1.8% YoY, net interest income up 12.5%." CNBC-TV18. https://www.cnbctv18.com/market/stocks/bank-of-baroda-share-price-q1fy26-results-profit-nii-down-treasury-income-jumps-7fold-asset-quality-deposits-19643719.htm
[3] The Economic Times. "Bank of Baroda Q1 FY26 results: Profit grows 2% YoY, NII down 1.4%." The Economic Times. https://economictimes.indiatimes.com/markets/stocks/earnings/bank-of-baroda-q1-results-pat-grows-2-yoy-to-rs-4541-crore-nii-decline-1-4/articleshow/122905928.cms
[4] The Economic Times. "Bank of Baroda and Canara Bank reduce corporate loan portfolios by ₹54,000 crore for margin safety." The Economic Times. https://economictimes.indiatimes.com/industry/banking/finance/banking/bank-of-baroda-canara-bank-let-go-of-54000-crore-loans-for-margin-safety/articleshow/122939808.cms