State-owned lender Bank of Baroda Ltd on Friday (October 30) reported its highest-ever quarterly net profit of ₹6,532 crore for the second quarter of FY27, registering a 35.8% year-on-year growth. The bank’s operating profit also reached a record ₹11,430 crore, rising 50.9% from the corresponding quarter last year.
Net interest income (NII) rose 9% year-on-year to ₹13,026 crore from ₹11,954 crore. Non-interest income surged 95.8% to ₹6,881 crore, taking the bank’s operating income to ₹19,907 crore, up 28.7% year-on-year.
Provisions surged 93.3% year-on-year to ₹2,381.8 crore from ₹1,232.47 crore. On a sequential basis, provisions increased from ₹643.03 crore in the previous quarter. Operating expenses rose 7.4% to ₹8,477 crore during the quarter. Global net interest margin (NIM) stood at 2.74%.
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First Half
For the first half of FY27, Bank of Baroda reported a net profit of ₹7,810 crore. NII increased 9.2% to ₹25,551 crore, while non-interest income rose 26.4% to ₹10,351 crore. Operating profit stood at ₹19,557 crore, up 23.7%, and operating income increased 13.7% to ₹35,902 crore. Operating expenses rose 3.7% to ₹16,345 crore.
The bank’s return on assets (ROA) improved 19 basis points year-on-year to 1.26% in Q2FY27, while return on equity (ROE) increased 363 basis points to 19.28%. For H1FY27, ROA stood at 0.75% and ROE at 11.63%. The global NIM for the first half stood at 2.76%.
Asset Quality
Bank of Baroda continued to report an improvement in asset quality, with its gross non-performing asset (GNPA) ratio declining 38 basis points year-on-year to 1.78% as of September 2026, compared with 2.16% a year ago.
The net non-performing asset (NNPA) ratio declined 20 basis points to 0.37%. The provision coverage ratio (PCR), including technical write-offs (TWO), improved 144 basis points to 94.65%, while PCR excluding TWO increased 535 basis points to 79.48%.
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The slippage ratio declined 22 basis points year-on-year to 0.69% in Q2FY27. For H1FY27, it stood at 0.67%, compared with 0.90% in the year-ago period. Credit cost stood at 0.55% for the quarter and 0.42% for the first half.
Business Performance
The bank’s global business increased 17.2% year-on-year to ₹32,57,883 crore as of September 30, 2026. Global advances grew 18.3% to ₹15,12,448 crore, while domestic advances increased 13.5% to ₹11,87,944 crore. International advances rose 39.7% to ₹3,24,504 crore.
Global deposits increased 16.4% year-on-year to ₹17,45,435 crore. Domestic deposits grew 16.6% to ₹14,83,521 crore, while international deposits rose 14.9% to ₹2,61,915 crore.
Domestic current account and savings account (CASA) deposits increased 10.4% to ₹5,39,515 crore. The retail, agriculture and micro, small and medium enterprises (RAM) portfolio grew 18% year-on-year, accounting for 64.2% of domestic advances.
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Organic retail advances increased 18.6%, driven by growth in auto loans (27.8%), mortgage loans (20.3%), home loans (14.6%) and education loans (9.9%).
The agriculture loan portfolio grew 19% to ₹2,01,946 crore, while the organic MSME portfolio increased 21.3% to ₹1,75,207 crore. Corporate advances rose 6.3% to ₹4,25,736 crore.
Capital Adequacy
Bank of Baroda’s capital adequacy ratio (CRAR) stood at 16.61% as of September 2026. Tier-I capital was 14.70%, comprising common equity tier-I (CET-1) capital of 14.20% and additional tier-I (AT1) capital of 0.50%. Tier-II capital stood at 1.91%.
The consolidated entity’s CRAR and CET-1 ratios stood at 17.01% and 14.65%, respectively. The quarterly average standalone liquidity coverage ratio (LCR) was approximately 133.6%.
Shares of Bank of Baroda Ltd ended at ₹238.50, up by ₹3.00, or 1.24%, on the BSE.
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