Bank of Baroda Q1 FY27 Result: Net Profit Falls to ₹1,278 Crore; Core Business Stays Resilient

Bank of Baroda's June-quarter earnings were weighed down by an exceptional charge, but its core business continued to expand.

Net interest income rose, credit growth remained broad-based and asset quality improved further. Retail, agriculture and MSME loans continued to outpace the overall loan book.

Bank of Baroda Q1 FY27 Result: Key Highlights

Bank of Baroda posted a net profit of ₹1,278 crore in the June quarter, compared with ₹4,541 crore a year earlier. The bank said the reported figure includes a one-time exceptional item. Excluding this impact, net profit would have been ₹5,528 crore.

Net interest income (NII) rose 9.5% year-on-year to ₹12,524 crore. Operating profit stood at ₹8,127 crore, while non-interest income came in at ₹3,470 crore. Operating expenses were largely unchanged at ₹7,868 crore, compared with the same quarter last year.

Global net interest margin (NIM) stood at 2.77%, while domestic NIM was 2.93%. The cost of deposits declined to 4.66%, down 39 basis points from a year ago.

On 2 July, Bank of Baroda’s share price closed at ₹246.45, up 1.36%, before the results were announced.

How Did Bank of Baroda's Business Grow in Q1 FY27?

The bank's global business reached ₹30.5 lakh crore, an increase of 15.4% year-on-year. Global advances rose 17.4% to ₹14.17 lakh crore, while global deposits grew 13.8% to ₹16.34 lakh crore. Domestic advances increased 16.1%, and domestic deposits rose 14.7% during the same period.

Retail lending continued to grow faster than the overall loan book. Organic retail advances were up 18.4%, led by mortgage loans (27.4%), auto loans (25.3%), home loans (14.7%) and education loans (10.8%). The RAM portfolio—Retail, Agriculture and MSME—expanded 16.5% and accounted for 62.9% of total advances.

Domestic CASA deposits stood at ₹5.21 lakh crore, up 10% year-on-year. International advances increased 23.3%, agriculture loans grew 18.7%, organic MSME loans rose 20.3%, and corporate advances were higher by 15.3% compared with the year-ago quarter.

How Was Bank of Baroda's Asset Quality in Q1 FY27?

The bank continued to report healthy asset quality during the quarter. Gross non-performing assets (GNPA) declined to 1.99% from 2.28% a year earlier, while net NPA improved to 0.50% from 0.60%.

Fresh stress remained under control. The slippage ratio fell to 0.91%, while credit cost reduced to 0.29% from 0.55% in the corresponding quarter last year. Provision coverage ratio (PCR) stood at 93.28%.

Bank of Baroda's capital position remained comfortable. The bank closed the quarter with a CRAR of 16.30% and a CET-1 ratio of 13.90%. Its average liquidity coverage ratio stood at around 127% during the quarter.

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