Bank of Baroda stock draws focus after record Q2 profit

Published on 11/01/2026 at 00:54 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Bank of Baroda stock draws attention after the lender posts its strongest quarterly profit. Management raises FY27 growth guidance as margins remain a watchpoint.

Record profit meets stronger lending outlook

Bank of Baroda posted its highest quarterly profit in the September 2026 quarter.
Asset quality improved, while higher provisions and a softer net interest margin remain key watchpoints.
Management raised its FY27 credit and deposit growth guidance.

Bank of Baroda, INE028A01039, Illustration mit AI erstellt.

Bank of Baroda reported its highest-ever quarterly net profit on Friday, October 30, 2026, as stronger non-interest income and improved asset quality lifted the lender's performance in the July-to-September period. Business Standard reported that net profit rose 36 percent year over year to INR 6,532 crore in Q2 FY27.

The result was supported by a 9 percent increase in net interest income to INR 13,026 crore. Non-interest income almost doubled to INR 6,881 crore, helped by treasury income of INR 4,093 crore after the bank sold part of its National Stock Exchange stake during the exchange's initial public offering, Business Standard reported.

Growth improves as margins face pressure

Operating profit increased 50.9 percent year over year to INR 11,430 crore. Global advances grew 18.3 percent to INR 15.12 trillion, led by a 39.7 percent increase in international advances, while domestic advances rose 13.5 percent.

Asset quality also strengthened. The gross non-performing asset ratio improved to 1.78 percent, while net non-performing assets declined to 0.37 percent. Fresh slippages fell to INR 2,392 crore from INR 3,183 crore in the first quarter.

Provisions nevertheless rose 93 percent year over year to INR 2,382 crore, although they were below the prior quarter's INR 6,323 crore. The net interest margin eased to 2.74 percent from the first quarter, below management's guidance range of 2.75 to 2.95 percent.

Management raises full-year targets

Managing Director and Chief Executive Officer Debadatta Chand said the bank lifted its FY27 credit growth guidance to 13-15 percent from 12-14 percent. Deposit growth guidance increased to 11-13 percent from 10-12 percent, while the net interest margin range was unchanged.

Management expects the net interest margin to improve in the third and fourth quarters as interest-rate conditions evolve. It also expects return on assets to remain above 1 percent in each of the remaining quarters of FY27.

Bank of Baroda's lending footprint

Bank of Baroda is an India-based state-owned bank offering savings and current accounts, loans, deposits, cards and other retail and corporate banking services. Its shareholder information lists personal, home, car and education loans alongside deposit products, cards and branch services, with the head office in Vadodara and the corporate office in Mumbai. The bank's broad public-sector model spans domestic and international lending, retail, agriculture, MSME and corporate segments.