Mumbai: State-owned Bank of Baroda (BoB) has reported its highest-ever annual net profit for FY2025–26, alongside a significant improvement in asset quality and strong growth across key business segments, according to its latest investor presentation released ahead of an investor engagement meeting scheduled for June 22, 2026.
The lender posted a net profit of $2.11 billion in FY26, up 2.2% year-on-year, while quarterly profit for Q4 FY26 rose 11.2% year-on-year to $592 million.
Strong Growth in Global Business
Bank of Baroda recorded robust expansion in its overall operations, with global business rising 13.9% year-on-year to $324.60 billion.
- Global deposits increased 12% to $173.83 billion
- Global advances grew 16.2% to $150.78 billion
- Domestic deposits rose 12.8%
- Domestic advances expanded 14.5%
Growth was supported by strong performance across retail, agriculture, and MSME lending segments, along with steady corporate credit demand.
Retail, Agriculture and MSME Lead Loan Expansion
The bank saw broad-based credit growth across retail and priority sectors:
- Retail advances grew 17.9%, driven by home loans, auto loans, and gold loans
- Agriculture advances surged 20.7%
- MSME lending increased 15.6%
- Corporate advances rose 11.2%, led by infrastructure and NBFC exposure
This diversified credit growth helped maintain balance sheet stability while expanding core lending operations.
Asset Quality Strengthens Further
Bank of Baroda continued to improve its asset quality during FY26:
- Gross NPA (GNPA) ratio declined to 1.89% from 2.26%
- Net NPA (NNPA) improved to 0.45% from 0.58%
- Provision Coverage Ratio (PCR) rose to 93.94% (including technical write-offs)
- Slippage ratio moderated to 0.72%
The improvement reflects stronger recoveries, better underwriting, and tighter credit monitoring.
Stable Profitability and Income Performance
Despite a marginal dip in operating profit, the bank maintained steady income growth:
- Net Interest Income (NII) rose 2.5% to $5,028 million
- Non-interest income declined slightly 0.2% to $1,662 million
- Operating profit stood at $3,402 million, down 0.5% year-on-year
- Net Interest Margin (NIM) was 2.89%
Strong Capital and Liquidity Position
The bank remained well-capitalized and liquidity strong:
- Capital Adequacy Ratio (CAR): 15.82%, above regulatory norms
- Liquidity Coverage Ratio (LCR): ~127% (quarterly average)
These indicators highlight the bank’s resilience and ability to support future growth.
Rapid Digital Transformation
Bank of Baroda continued expanding its digital banking ecosystem:
- 97% of all transactions conducted digitally
- Over 15.77 billion digital transactions processed in FY26
- More than 20,000 digital touchpoints nationwide
The bank is increasingly leveraging technology to enhance customer experience and operational efficiency.
Extensive Domestic and Global Network
Established in 1908, Bank of Baroda continues to maintain a strong presence across India and overseas:
- Customer base: nearly 183 million
- Branch network: 8,648 branches
- ATMs and cash recyclers: over 10,000
- International presence: 80 overseas offices across 15 countries
The Government of India holds a 63.97% stake in the bank, reinforcing sovereign backing.
About Bank of Baroda
Bank of Baroda is one of India’s leading public sector banks, offering a wide range of financial services including retail banking, corporate banking, treasury operations, and international banking. Founded in 1908, the bank has grown into a global financial institution with a strong presence across India and multiple international markets, supported by a large customer base and expanding digital infrastructure.
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