Bank of Baroda posts record profit of 6,532 crore rupees in second quarter
Key Facts
India’s Bank of Baroda reported net profit of 6,532 crore rupees in the second quarter of fiscal 2026-2027, up 36% year on year and its highest quarterly profit on record. Business Standard reported that profit rose from 4,809 crore rupees in the same period of the previous fiscal year. Operating profit increased 50.9% to 11,430 crore rupees, from 7,576 crore in the corresponding quarter. Growth in non-interest income, particularly treasury income, was among the main drivers of the increase in earnings. The report said the rise in treasury income was linked to the sale of NSE shares through an initial public offering.
Net interest income rose 9% year on year to 13,026 crore rupees in the second quarter, while non-interest income climbed about 96% to 6,881 crore rupees, Business Standard reported. But this growth in non-interest income came as net interest margin contracted 3 basis points from the previous quarter to 2.74%. The margin measures the return on lending relative to funding costs, so its decline shows that growth in net interest income did not prevent sequential pressure on the margin. Treasury income was 4,093 crore rupees in the second quarter, compared with 1,086 crore in the second quarter of fiscal 2025-2026 and 893 crore in the first quarter of the current fiscal year. The report linked the surge in non-interest income to treasury income, including the sale of NSE shares through an initial public offering.
On asset quality, the gross non-performing asset ratio fell 21 basis points from the previous quarter to 1.78% at the end of the second quarter. The net non-performing asset ratio declined 13 basis points to 0.37%, the report said. Year on year, the gross non-performing asset ratio was 2.16% in the second quarter of fiscal 2025-2026, before falling to 1.78% in the corresponding period of the current fiscal year. Fresh slippages also declined to 2,392 crore rupees, from 3,183 crore in the first quarter and 2,669 crore in the second quarter of the previous year. These figures show a decline in new additions to non-performing loans alongside a fall in both the gross and net ratios.
Provisions, meanwhile, rose 93% year on year to 2,382 crore rupees in the second quarter, although they fell from 6,323 crore in the previous quarter. The comparison shows provisions declining quarter on quarter while remaining far above their level in the year-earlier period. At the same time, the bank expanded its advances: global advances grew 18.3% year on year to 15.12 trillion rupees in September 2026. International advances rose 39.7% to 3.24 trillion rupees, while domestic advances increased 13.5% to 11.87 trillion rupees. According to Business Standard, international lending was the fastest-growing component among the advances cited.
Global deposits grew 16.4% year on year to 17.45 trillion rupees in September 2026, with domestic deposits up 16.6% to 14.83 trillion rupees and international deposits rising 14.9% to 2.61 trillion rupees. Domestic current and savings deposits stood at 5.39 trillion rupees as of 30 September 2026, up 10.4% from a year earlier. These figures show the expansion of domestic and international deposits alongside the growth in advances over the same period. The bank announced results for the quarter ended September 2026 on 30 October, according to the first draft; open-source data identify the fiscal period and figures reported in the results. The available information did not include a specific later date or forward guidance from the bank.