Mumbai: State-owned Bank of Baroda (BoB) posted a stable performance for the December quarter (Q3 FY26), reporting a 4.5% year-on-year rise in standalone net profit to ₹5,055 crore, driven by stable net interest income, improved asset quality, and strong loan growth.
Profit and Income Metrics Remain Strong
Bank of Baroda’s net interest income (NII) remained largely flat at ₹11,800 crore, compared with ₹11,786 crore a year ago. Non-interest income rose 5.9% YoY to ₹3,600 crore, contributing to an operating profit of ₹7,377 crore. Return on assets (RoA) stood at 1.09%, while return on equity (RoE) improved to 15.59%.
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Asset Quality Shows Consistent Improvement
The bank’s gross non-performing assets (GNPA) ratio declined to 2.04% from 2.43% in Q3 FY25. Net NPA remained stable at 0.57%, supported by a healthy provision coverage ratio of 92.73% (including technical write-offs). The slippage ratio was reported at 0.86%, while credit cost remained low at 0.17%.
Segment-wise asset quality highlights included:
- Housing loans (ex-pool): 1.19% GNPA
- Auto loans (ex-pool): 1.75% GNPA
- Personal loans: 4.42% GNPA
- Retail gold loans: 0.56% GNPA
Loan and Deposit Growth Exceed Guidance
Bank of Baroda’s global advances grew 14.7% YoY to ₹13.44 lakh crore, surpassing management guidance of 11–13% growth. Domestic advances rose 13.6% YoY to ₹10.96 lakh crore. Deposits across the network increased 10.3% to ₹15.46 lakh crore.
The retail loan portfolio posted strong growth of 17.4% YoY to ₹2.85 lakh crore, led by:
- Mortgage loans: +21%
- Auto loans: +17.4%
- Home loans: +16%
- Education loans: +12.8%
- Personal loans: +12%
Priority sector lending remained strong at 40.45% of adjusted net bank credit, exceeding regulatory norms, with agriculture, small and marginal farmers, weaker sections, and micro-enterprises all above mandated thresholds.
Capital Adequacy and Digital Banking Momentum
The bank maintained healthy capital ratios with a standalone CRAR of 15.29% and CET-1 ratio at 12.45%. Consolidated CRAR stood at 15.75%, with CET-1 at 12.97%.
Digital banking initiatives showed robust traction:
- bob World users: 3.47 crore (+9% YoY)
- Digital transactions: 96% of total transactions
- Digital lending sanctions: ₹9,184 crore (+70% YoY)
Nine-Month FY26 Performance
For the April–December 2025 period, Bank of Baroda reported a net profit of ₹14,405 crore and NII of ₹35,189 crore (+0.5% YoY), reflecting steady growth and operational resilience.
Management Commentary
The bank highlighted its focus on sustainable growth, strengthening the retail franchise, digital innovation, and prudent risk management, underlining the continued improvement in asset quality and business performance.
About Bank of Baroda
Founded in 1908, Bank of Baroda is a leading public sector bank in India with a widespread domestic network and international operations in 17 countries. Listed on both the BSE and NSE, BoB continues to focus on retail growth, priority sector lending, and digital banking innovations.
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