Mumbai: Bank of Baroda (BoB) reported a standalone net profit of ₹1,278 crore for the first quarter of FY27, impacted by a one-time exceptional charge of ₹5,680 crore related to the NMC Group settlement.
Excluding the exceptional item, the bank’s net profit would have stood at ₹5,528 crore, reflecting the strength of its core banking operations. The public sector lender reported strong business growth during the quarter, with improvement in asset quality, higher advances, and a rise in net interest income (NII).
Bank of Baroda Q1 FY27 Financial Performance
Bank of Baroda reported steady growth in key financial parameters during Q1 FY27.
Key financial highlights include:
- Net Profit: ₹1,278 crore
- Adjusted Net Profit (excluding exceptional item): ₹5,528 crore
- Net Interest Income (NII): ₹12,524 crore, up 9.5% year-on-year
- Total Income: ₹36,681 crore, up 2.6% YoY
- Operating Profit: ₹8,127 crore
- Non-Interest Income: ₹3,470 crore
- Global Net Interest Margin (NIM): 2.77%
- Domestic NIM: 2.93%
- Cost of Deposits: 4.66%, down 39 basis points YoY
The bank’s Return on Assets (ROA) stood at 0.25%, while ROA excluding the exceptional item was 1.10%. Return on Equity (ROE) was 3.89%, improving to 16.57% after adjusting for the one-time impact.
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Bank of Baroda Business Growth Remains Strong
Despite the impact of the exceptional charge, Bank of Baroda continued to witness strong growth across its business segments.
The bank’s business performance during Q1 FY27 includes:
- Global Business: ₹30,50,457 crore, up 15.4% YoY
- Global Advances: ₹14,16,898 crore, up 17.4% YoY
- Global Deposits: ₹16,33,559 crore, up 13.8% YoY
- Domestic Advances: ₹11,50,906 crore, up 16.1% YoY
- Domestic Deposits: ₹13,81,535 crore, up 14.7% YoY
- International Advances: ₹2,65,992 crore, up 23.3% YoY
The bank’s domestic CASA deposits stood at ₹5,21,149 crore, registering a growth of 10% year-on-year.
Retail, Agriculture and MSME Loans Drive Growth
Bank of Baroda continued to see strong momentum in retail and priority sector lending.
The RAM portfolio (Retail, Agriculture and MSME) grew 16.5% YoY, with its share increasing to 62.9% of total advances.
Major portfolio growth figures include:
- Organic Retail Advances: Up 18.4% YoY
- Auto Loans: Up 25.3%
- Mortgage Loans: Up 27.4%
- Home Loans: Up 14.7%
- Education Loans: Up 10.8%
- Agriculture Loans: ₹1,91,989 crore, up 18.7% YoY
- MSME Portfolio: ₹1,63,264 crore, up 20.3% YoY
- Corporate Advances: ₹4,27,082 crore, up 15.3% YoY
Asset Quality Improves with Lower NPAs
Bank of Baroda reported improvement in asset quality during Q1 FY27.
Key asset quality indicators:
- Gross NPA (GNPA): 1.99%, down 29 basis points YoY
- Net NPA: 0.50%, down 10 basis points YoY
- Provision Coverage Ratio (PCR) with TWO: 93.28%
- PCR without TWO: 75.07%
- Slippage Ratio: 0.91%, down 25 basis points YoY
- Credit Cost: 0.29%, down 26 basis points YoY
On a quarter-on-quarter basis, GNPA increased slightly from 1.89% in the previous quarter to 1.99%, while Net NPA rose from 0.45% to 0.50%.
NMC Group Settlement Impacts Q1 Profit
Bank of Baroda’s Q1 FY27 profit was affected by a one-time settlement with NMC Group entities.
Key details of the settlement:
- Bank paid USD 600 million (₹5,680 crore)
- Settlement date: July 1, 2026
- Amount charged to the Q1 FY27 profit and loss account
- Settlement completed without admission of liability
- All related proceedings were discontinued
The bank stated that the settlement resolves all outstanding claims related to the matter.
Capital Position Remains Strong
Bank of Baroda maintained a healthy capital position during the quarter.
Capital adequacy details:
- CRAR: 16.30%
- Tier-I Capital: 14.41%
- CET-1: 13.90%
- AT1: 0.51%
- Tier-II Capital: 1.89%
- Consolidated CRAR: 16.70%
- Consolidated CET-1: 14.36%
- Average Liquidity Coverage Ratio (LCR): Around 127%
The strong capital position provides support for future business expansion and growth initiatives.
Segment Performance of Bank of Baroda
Bank of Baroda reported strong performance across major business segments.
Segment-wise Results:
- Treasury Segment
- Revenue: ₹8,212 crore
- Result: ₹1,471 crore
- Wholesale Banking
- Revenue: ₹12,997 crore
- Result: ₹3,399 crore
- Retail Banking
- Revenue: ₹15,366 crore
- Result: ₹3,889 crore
- Other Banking Operations
- Revenue: ₹102 crore
- Result: ₹102 crore
Geographic Performance:
- Domestic Revenue: ₹32,390 crore
- International Revenue: ₹4,291 crore
Bank of Baroda’s Core Business Remains Resilient
Although the reported profit declined due to the one-time NMC settlement, the bank’s underlying business performance remained strong.
Net Interest Income increased 9.5% YoY to ₹12,524 crore, reflecting healthy growth in lending activities. The bank also reported a significant decline in provisioning expenses, which stood at ₹643 crore, compared with ₹3,150 crore in the previous quarter and ₹1,967 crore in Q1 FY26.
The performance highlights continued improvement in business growth, profitability potential, and asset quality management.
About Bank of Baroda (BoB)
Bank of Baroda (BoB) is one of India’s largest public sector banks, established in 1908 and headquartered in Mumbai. The bank provides a wide range of banking and financial services, including retail banking, corporate banking, loans, digital banking, and international banking operations. With a strong domestic and global presence, Bank of Baroda plays an important role in supporting India’s economic growth and financial inclusion.
