Bank of Baroda Posts Record Profit of 6,532 Crore Rupees in Second Quarter
Key Facts
Bank of Baroda said on October 30 that net profit reached 6,532 crore rupees in the second quarter ended September 30, 2026, up 35.8% year on year, marking the highest quarterly profit in its history. Net profit was 4,809 crore rupees in the same period of the previous financial year and 1,278 crore in the first quarter of the current financial year. But first-half profit was 7,810 crore rupees, compared with 9,351 crore a year earlier, a decline of 16.5%. The bank said in its results statement that the quarter saw "the highest-ever quarterly net profit." The quarterly jump came with a strong increase in non-interest income, while net interest income growth remained much slower.
Net interest income, or income from lending after accounting for funding costs, rose 9% year on year to 13,026 crore rupees, while non-interest income climbed 95.8% to 6,881 crore. Operating profit rose 50.9% to 11,430 crore rupees, according to the bank's statement. Treasury income was 4,093 crore rupees, compared with 1,086 crore in the corresponding quarter and 893 crore in the first quarter. Business Standard linked the increase to the bank's sale of part of its stake in the NSE during its initial public offering. The official public disclosure did not state the value of the sale proceeds, so the published comparison of treasury income remains the available quantitative indicator on this point.
On returns, return on assets was 1.26% in the second quarter and 0.75% in the first half. Return on equity rose to 19.28% for the quarter and was 11.63% for the first half, according to the results statement. These indicators reflect a divergence between higher profit and returns in the quarter and a decline in the margin compared with the previous period.
Asset quality indicators improved alongside lending growth. Fresh slippages fell to 2,392 crore rupees in the second quarter, compared with 3,183 crore in the first quarter and 2,669 crore in the corresponding quarter a year earlier, according to Business Standard. On expansion, global advances grew 18.3% year on year to 15,12,448 crore rupees as of September 30, 2026. International advances, up 39.7% to 3,24,504 crore rupees, grew faster than domestic advances, which rose 13.5% to 11,87,944 crore. The comparison within the bank's portfolio shows that international credit expanded at a faster pace than domestic credit during the period.
The organic retail portfolio grew 18.6% year on year, driven by increases of 27.8% in auto loans, 20.3% in mortgage loans, 14.6% in home loans and 9.9% in education loans. The organic small and medium enterprise portfolio also rose 21.3% to 1,75,207 crore rupees. The agriculture portfolio increased 19% to 2,01,946 crore rupees, while corporate loans grew 6.3% to 4,25,736 crore. The bank's total global business was 32,57,883 crore rupees, up 17.2% year on year, according to the official disclosure. These figures show business growth across retail, corporate and agriculture segments, with clear differences in their rates of expansion.
The bank raised its FY2027 credit growth guidance to 13%–15% from 12%–14%, and increased its deposit growth target to 11%–13% from 10%–12%. The chief executive said he expects stronger credit growth in the December and March quarters, and for the interest margin to improve in the second half. The bank added that it has a corporate credit pipeline exceeding 60,000 crore rupees and expects corporate credit growth to exceed 10% for the full financial year. It also raised 8.08 billion dollars through its FCNR(B) special deposit programme, and said about 74,000–75,000 crore rupees of funds converted into rupees remain available for liquidity and will be deployed in the December and March quarters. These targets and funding flows outline the expected growth path in the coming months and were among the key announcements accompanying the bank's results.