Bank of Baroda, Kotak Mahindra Bank, IDFC First Bank: How key banking names fared in Q1 FY26; top takeaways

Bank of Baroda

Bank of Baroda, the state-run lender, on Friday said its net profit rose 1.9% to ₹4,541 crore in the first quarter of the current fiscal year (Q1 FY26).

The state-run bank had posted a net profit of ₹4,458 crore in the year-ago period.

Its operating profit grew by 15% year-on-year (YoY) to ₹8,236 crore in the April-June quarter of 2025-26, the lender said in a statement.

"The growth in operating profit was supported by 88% YoY growth in non-interest income to ₹4,675 crore in Q1FY26," it said.

However, BoB's net interest income (NII) fell 1.4% to ₹11,435 crore.

The gross NPA (non-performing assets) of the bank reduced by 10.7% YoY to ₹27,572 crore in Q1FY26, and the gross NPA ratio improved to 2.28% in Q1FY26 from 2.88% a year ago.

The net NPA ratio also reduced by 9 basis points (bps) to 0.60% in the first quarter of FY26.

The bank's domestic advances increased to ₹9,91,363 crore, up 12.4% year-on-year.

Global advances grew 12.6% YoY to ₹12,07,056 crore.

Total business size as of June 30, 2025, stood at ₹26.42 lakh crore, up from ₹23.87 lakh crore as of June 30, 2024.

Total interest income grew 4.9% to ₹31,091 crore at the end of the June quarter.

Kotak Mahindra Bank

Kotak Mahindra Bank on Saturday reported a consolidated net profit of ₹4,472 crore for the June quarter and flagged stress on the retail commercial vehicle portfolio due to adverse macroeconomic conditions.

The consolidated net profit in the year-ago period was ₹7,448 crore, but it had included gains of over ₹3,000 crore on its stake sale in the general insurance arm, while the net profit for the March quarter stood at ₹4,933 crore.

On a standalone basis, the private sector lender's net profit dropped 7% year-on-year to ₹3,282 crore, which was attributed to reverses on the core income front due to rate cuts by the RBI, slower growth in fee income, and also higher provisions.

The core net interest income grew 6% to ₹7,259 crore on the back of a 14% loan growth but was restricted by a 0.37% narrowing in the net interest margin (NIM) to 4.65%.

The bank's chief financial officer, Devang Gheewala, said over 60% of the assets are linked to the repo rate, which gets repriced with every policy rate cut, while the decrease in cost of funds is taking longer as the deposit base takes longer to reprice.

The other income grew by a slower 5% to ₹3,080 crore, and Gheewala said it will rise once the bank comes out of the RBI-imposed embargo and ups the pace of 811 account openings and credit card business.

The overall provisions on advances more than doubled to ₹1,200 crore, and a major part of it was due to money set aside on reserves the bank sees in the microfinance portfolio, which has been bothering for some quarters now, and also retail commercial vehicles.

The bank's managing director and chief executive, Ashok Vaswani, said it has cautiously started disbursing MFI loans, and the pace of disbursements will go up in the second half of the fiscal year, which will help it show growth in the book as well.

"The provisions for MFI business have peaked," he added.

Fresh slippages increased to ₹1,812 crore from ₹1,358 crore logged in the year-ago period, while the gross non-performing assets ratio increased to 1.48% from 1.39%.

Gheewala said nearly 35% of the incremental slippages came from the retail CV book.

IDFC First Bank

Private sector IDFC First Bank on Saturday reported a 32% slump in net profit to ₹463 crore during the first quarter of the current financial year, impacted by slippages in the microfinance book.

The Mumbai-based lender had earned a net profit of ₹681 crore in the same quarter of the previous fiscal year.

The total income rose to ₹11,869 crore during the June quarter of 2025-26 from ₹10,408 crore in the same quarter of FY25, IDFC First Bank said in a regulatory filing.

Interest earned by the bank improved to ₹9,642 crore compared to ₹8,789 crore in the June quarter of FY25.

Net interest income (NII) also increased to ₹4,933 crore during the quarter against ₹4,695 crore logged in the year-ago period.

The bank's asset quality showed deterioration as gross non-performing assets (NPAs) declined to 1.97% of gross advances at the end of the June quarter from 1.90% a year ago.

However, net NPAs, or bad loans, improved to 0.55% against 0.59% in the year-ago period.

Provisions for the quarter rose significantly to ₹1,659 crore compared to ₹994 crore in the same period of the previous fiscal due to slippages in the microfinance book.

Return on Assets (ROA) declined to 0.53% for June 2025 from 0.91% at the end of June 2024, registering a fall of 38 bps, it said.

At the same time, the capital adequacy ratio slipped to 14.86% from 15.59% in the same quarter of FY25.