Bank of Baroda shares in focus: Lender lowers loan rates by 0.25% on select products; check details

The rate cut comes at a time when calls are being made to look at boosting credit growth, which will help in the economic expansion. With an eye on inflation, the Reserve Bank of India (RBI) has been holding on to rates, and the money markets have also seen hardening of yields.

The move was aligned with the onset of the festive season, Bank of Baroda said in a statement.

In the home loan market, some major banks have been complaining about lending happening at "irrational" rates by rivals, which is forcing them to slow down book expansion.

Bank of Baroda's executive director Sanjay Mudaliar said its mortgage offering has become more competitive now with the interest rate cuts.

As part of the move, the bank said the floating car loan interest rate now starts at 8.15%, as against 8.40% earlier.

The competitive car loan offering can be availed in case of new car buying, and the rate of lending depends on the credit profile of the borrower, the bank said.

The bank has also reduced interest rates on loans against property to 9.15% from 9.85% earlier, the statement said. It offers a fixed-rate interest car loan linked to the 6-month marginal cost of funding-based lending rate starting from 8.65 per cent per annum, the statement said.

Bank of Baroda Q1 FY26 Results

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

The state-owned lender 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 fell 1.4% to ₹11,435 crore.

The Gross NPA of the bank reduced by 10.7% YoY to ₹27,572 crore in Q1 FY26, and the Gross NPA ratio improved to 2.28% in Q1 FY26 from 2.88% a year ago.