Bank of Baroda Posts Record Profit of 6,532 Crore Rupees, Up 36%
Key Facts
Bank of Baroda said standalone net profit reached 6,532 crore rupees in the second quarter of fiscal 2027, up 36% year on year, marking its highest quarterly profit. The board approved unaudited results for the quarter and half-year ended September 30, 2026. Profit growth came as net interest income rose 9% to 13,026 crore rupees and non-interest income increased about 96% to 6,881 crore rupees. A surge in treasury income supported revenue, reaching 4,093 crore rupees during the quarter.
Treasury income was 4,093 crore rupees, compared with 1,086 crore in the second quarter of fiscal 2026 and 893 crore in the previous quarter. Total non-interest income also rose to 6,881 crore rupees, up about 96% year on year. In core banking, net interest income increased to 13,026 crore rupees, recording annual growth of 9%. This means core income growth remained positive, while the increase in overall revenue did not prevent a decline in the margin compared with the year-earlier period.
Provisions rose 93% year on year to 2,382 crore rupees in the second quarter of fiscal 2027. They included about 1,300 crore rupees in precautionary provisions related to the expected transition to an expected credit loss framework. The bank added 300 crore rupees to contingency provisions. At the same time, bad-loan indicators improved from the previous quarter: the gross non-performing asset ratio fell 21 basis points to 1.78%. The net non-performing asset ratio declined 13 basis points to 0.37%, while fresh slippages fell to 2,392 crore rupees from 3,183 crore in the first quarter, but remained below the 2,669 crore recorded a year earlier.
The bank continued to expand its balance sheet during the quarter, with global advances growing 18.3% year on year to 15.12 trillion rupees at quarter-end. Global deposits increased 16.4% to 17.45 trillion rupees. The bank raised its fiscal 2027 credit growth guidance to a range of 13–15%, from 12–14%. It also raised its deposit growth forecast to 11–13% from 10–12%. Management said: "We are revising our full-year guidance upward from 12–14% to 13–15%, and similarly raising our deposit growth guidance from 10–12% to 11–13%," in an update that sets higher expansion targets for the current fiscal year.
As part of deposit funding, the bank raised $8.08 billion through FCNR(B) deposits under the Reserve Bank of India's preferential swap window. These deposits complement the picture of growth in the funding base, alongside a 16.4% rise in global deposits to 17.45 trillion rupees at the end of the second quarter. On guidance, the increase in the deposit growth range to 11–13% accompanies a higher target range of 13–15% for credit growth in fiscal 2027. The quarterly results remain a mix of business expansion, a strong contribution from treasury income, pressure on the interest margin and higher hedging provisions. The period covered by the results ended on September 30, 2026, according to the bank's disclosure for the quarter and half-year.