Bank of Baroda Reports 36% Increase in Net Profit, Reaching Rs 6,532 Crore
Bank of Baroda reported a standalone net profit of Rs 6,531.54 crore for the quarter ending September 30, 2026, marking a 35.81% increase from Rs 4,809.39 crore in the same period last year. This growth was fueled by a significant rise in other income, higher core earnings, and improved asset quality. The bank’s total income rose to Rs 41,966.05 crore, while net revenue, which includes net interest income (NII) and other income, reached Rs 19,906.99 crore.
Financial Performance Highlight
Net interest income increased by 8.98% to Rs 13,026.27 crore. Interest earned rose by 11.34% to Rs 35,085.33 crore, driven by a 13.82% increase in interest on advances and bills, which reached Rs 26,754.46 crore. The bank’s advances grew 18.49% year-on-year to Rs 1,491,037.83 crore as of September 30, 2026. Interest expenses also rose, increasing by 12.80% to Rs 22,059.06 crore, while total deposits climbed 16.36% to Rs 174,543.39 crore from Rs 150,001.48 crore a year earlier.
Other income nearly doubled, surging 95.76% to Rs 6,880.72 crore from Rs 3,514.95 crore. Treasury operations saw a 46.78% increase in segment revenue to Rs 12,381.78 crore, with segment profit rising 175.65% to Rs 6,120.44 crore from Rs 2,220.41 crore. The wholesale banking segment revenue grew 13.16% to Rs 13,511.26 crore, while retail banking revenue increased by 9.69% to Rs 15,931.72 crore.
Operating Metrics
Operating profit before provisions and contingencies surged 50.87% to Rs 11,430.11 crore, up from Rs 7,575.95 crore. Operating expenses rose by 7.4% to Rs 8,476.88 crore, with employee expenses increasing 12.86% to Rs 4,582.72 crore. Other operating expenses saw a smaller rise of 1.63% to Rs 3,894.16 crore. Provisions and contingencies increased by 93.26% to Rs 2,381.83 crore from Rs 1,232.47 crore. Profit before tax rose 42.64% to Rs 9,048.28 crore from Rs 6,343.48 crore, with a tax expense of Rs 2,516.74 crore leading to the net profit of Rs 6,531.54 crore.
Asset Quality and Capital Ratios
The bank’s asset quality showed improvement, with the gross non-performing asset (GNPA) ratio declining by 38 basis points year-on-year to 1.78% from 2.16%. Gross NPAs fell to Rs 26,896.55 crore from Rs 27,599.75 crore. The net NPA ratio decreased by 20 basis points to 0.37% from 0.57%, while net NPAs dropped 22.69% to Rs 5,520.47 crore.
The capital adequacy ratio under Basel III stood at 16.61% as of September 30, 2026, compared to 16.54% a year earlier. The common equity tier 1 (CET1) ratio improved by 84 basis points to 14.20% from 13.36%. The annualized return on assets increased to 1.26% from 1.07%.
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