Bank of Baroda Q2 Result: Net profit falls 8% at ₹4,809 crore; asset quality improves

The PSU bank’s net interest income (NII), however, rose 2.7% to ₹11,637 crore year-on-year (YoY) as against ₹11,954 crore in Q2 FY25.

The bank maintained strong asset quality, with gross non-performing assets (NPA) at 2.50%, compared to 2.28% in the previous quarter. Net NPA for Q2 FY26 remained stable at 0.60%.

Bank of Baroda’s global net interest margin (NIM) for Q2 FY26 improved by 5 basis points (bps) sequentially to 2.96%, while for the first half (H1) of FY26, it stood at 2.93%.

The bank’s domestic NIM stood at 3.10% for the quarter, up 4 bps quarter-on-quarter, and at 3.08% for H1 FY26.

Bank of Baroda’s balance sheet remained robust, supported by a healthy provision coverage ratio (PCR) of 93.21% with technical write-offs (TWO) and 74.13% without TWO. The slippage ratio for Q2 FY26 declined by 16 basis points year-on-year and 25 basis points QoQ to 0.91% and stood at 0.90% for H1 FY26. Credit cost remained low at 0.29% for Q2 FY26 and 0.42% for the first half of the year.

The bank’s global advances grew 11.9% year-on-year, while domestic advances rose 11.5% in Q2 FY26, driven by strong growth in the retail loan portfolio.

Credit cost remained well below 0.75%, at 0.29% for Q2 FY26 and 0.42% for H1 FY26.

As of September 30, 2025, the lender’s domestic current account savings account (CASA) deposits grew 6.6% YoY to ₹488,660 crore, while international deposits rose 7.2% to ₹228,020 crore YoY. 

Operating expenses remained contained sequentially, standing at ₹7,893 crore for the quarter, up 7.7% year-on-year, and at ₹15,765 crore for H1 FY26.

Return on Assets (ROA) stayed consistently above 1%, at 1.07% for Q2 FY26 and 1.04% for H1 FY26. Return on Equity (ROE) stood at 15.37% for Q2 FY26, up 32 basis points quarter-on-quarter, and at 14.95% for the first half of FY26.

On Friday, Bank of Baroda shares settled at ₹278.05 apiece on NSE, rising 1.94%.