Bank of Baroda (BANKBARODA) Q1 25/26 earnings summary

Executive summary

• Global advances grew 12.6% YoY, led by robust retail, agriculture, and MSME growth, while corporate loan growth was muted at 4.2% YoY.

• Net profit for Q1FY26 rose 1.9% YoY to ₹4,541 crore, with operating profit up 15% YoY to ₹8,236 crore and non-interest income surging 88% YoY to ₹4,675 crore.

• Deposit growth was 9.1% YoY, with international deposits up 14.8% and domestic up 8.1%.

• Asset quality improved, with GNPA at 2.28% and NNPA at 0.60% as of June 2025.

• Focus remains on sustainable, organic growth, digital expansion, and maintaining strong fundamentals.

Financial highlights

• Retail book grew 17.5%, agriculture 16.2%, MSME 13.1%, and personal loans 19.5%.

• Net interest income for Q1FY26 was ₹11,435 crore; operating income rose 14.4% YoY to ₹16,109 crore.

• Cost-to-income ratio improved by 30 bps YoY to 48.87%.

• Net interest margin (NIM) at 2.91% globally, with a 7 bps sequential decline; domestic NIM at 3.06%.

• Return on assets (ROA) at 1.03%-1.16%; return on equity (ROE) at 15.05%.

• GNPA improved by 60 bps YoY to 2.28%; Net NPA at 0.60%-0.64%.

• Provision coverage ratio (PCR) at 93.18%; slippage ratio at 1.16%; credit cost at 0.55%.

Outlook and guidance

• Margin pressure expected to persist in Q2, with improvement anticipated in Q3 and Q4; full-year NIM guidance at 2.85%-3%.

• ROA above 1% targeted for the full year, with sustainability supported by prudent provisioning.

• Corporate loan growth guidance at 9%-10% for FY26.

• Recovery targets set above INR 10,000 crore for the year.

• Bank targets net zero emissions by 2057 and aims for 50% renewable energy sector financing by 2029.