The state-owned lender posted a standalone net profit of ₹1,278 crore for the quarter ended June, compared with ₹4,541.4 crore in the year-ago period. The figure was significantly lower than the CNBC-TV18 poll estimate of ₹5,319 crore.
The earnings were impacted by a one-time exceptional loss of ₹5,680.2 crore recorded during the quarter. In the filing, the bank clarified that excluding the exceptional item, its net profit would have stood at ₹5,528 crore, indicating that its underlying operating performance remained resilient.
Net interest income (NII), the difference between interest earned and interest paid, rose 10% year-on-year to ₹12,525 crore from ₹11,435 crore. However, it missed the CNBC-TV18 poll estimate of ₹12,745 crore, indicating a softer-than-expected core operating performance.
On the asset quality front, the bank reported a sequential deterioration. Gross non-performing assets (GNPA) increased to 1.99% at the end of June from 1.89% in the March quarter, while net NPA (NNPA) rose to 0.50% from 0.45%.
Provisions declined sharply to ₹643 crore, compared with ₹3,150 crore in the preceding quarter and ₹1,967 crore in the corresponding quarter last year.
Bank of Baroda’s exceptional loss of about ₹5,700 crore follows an out-of-court settlement in the long-running NMC Health dispute. The lender agreed to pay $600 million to resolve claims linked to the insolvency proceedings of NMC Health PLC, NMC Healthcare and NMC Holding before courts in Abu Dhabi and England.
The bank said the settlement, made without any admission of liability or wrongdoing, fully caps its financial exposure. The amount has been paid through its Abu Dhabi branch, ending proceedings in Abu Dhabi, while withdrawal of the UK case is in progress.
Bank of Baroda loan growth
On business growth front, Bank of Baroda’s global advances rose 17.4% year-on-year to ₹14.17 lakh crore, while domestic advances increased 16.1% to ₹11.51 lakh crore. International advances grew an even stronger 23.3% to ₹2.66 lakh crore.
On the liabilities side, global deposits increased 13.8% to ₹16.34 lakh crore, while domestic deposits rose 14.7% to ₹13.82 lakh crore. Domestic CASA deposits grew 10% year-on-year to ₹5.21 lakh crore.
Retail lending remained a key growth driver, with organic retail advances rising 18.4%. Within the portfolio, auto loans grew 25.3%, mortgage loans 27.4%, home loans 14.7% and education loans 10.8%.
The bank also reported robust expansion in priority and commercial lending. Agriculture advances increased 18.7% to ₹1.92 lakh crore, organic MSME loans grew 20.3% to ₹1.63 lakh crore, while corporate advances rose 15.3% year-on-year to ₹4.27 lakh crore.
First Published: Jul 24, 2026 5:24 PM IST
