Bank of Baroda Q2 profit dips 8% YoY to ₹4,809 cr; asset quality strengthens, retail loans up 18%
Mumbai: Bank of Baroda (BoB) reported a year-on-year decline of 8.2% in its Q2FY26 net profit, which stood at ₹4,809 crore, compared to ₹5,238 crore in the same quarter last year.
Sequentially, however, profit rose 5.9% from the previous quarter, supported by healthy loan growth, higher margins, and lower credit costs.
For the first half of FY26, the bank posted a net profit of ₹9,351 crore, marginally lower than ₹9,696 crore in H1FY25.
Net Interest Income (NII) rose 2.7% YoY to ₹11,954 crore, while Non-Interest Income came in at ₹3,515 crore.
Operating profit stood at ₹7,576 crore, down from ₹9,477 crore a year earlier.
Profitability metrics remained steady, with Return on Assets (ROA) at 1.07% and Return on Equity (ROE) at 15.37%.
The Global Net Interest Margin (NIM) improved to 2.96% from 2.91% in the previous quarter, while the Domestic NIM stood at 3.10%.
The bank’s asset quality continued to improve, with Gross NPA reducing to 2.16% from 2.50% last year and Net NPA at 0.57%, down 3 bps YoY.
The Provision Coverage Ratio (PCR) stood strong at 93.21%, while credit cost remained contained at 0.29%.
On the business front, global advances grew 11.9% YoY to ₹12.78 lakh crore, led by strong retail lending momentum.
Domestic advances rose 11.5%, while the retail loan portfolio expanded 17.6%, driven by solid growth in mortgage (19.8%), auto (17.7%), home (16.5%), and personal loans (18.6%).
The Retail, Agri, and MSME (RAM) segment now forms 61.7% of total advances.
Deposits also showed healthy growth — domestic deposits increased 9.7% YoY to ₹12.72 lakh crore, and global deposits rose 9.3% to ₹15 lakh crore.
The bank’s Capital Adequacy Ratio (CRAR) remained comfortable at 16.54%, with a Tier-I ratio of 14.15%.
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