Bank of Baroda (BANKBARODA) Q2 25/26 earnings summary

Executive summary

• Global advances grew 11.9% year-over-year to ₹12,78,847 crore, with domestic at 11.5% and international at 13.8%.

• Global deposits increased 9.3% year-over-year to ₹15,00,012 crore; domestic deposits up 9.7%, international up 7.2%.

• Net profit for Q2FY26 was ₹4,809 crore, up 5.9% sequentially but down 8.2% year-over-year; H1FY26 net profit at ₹9,351 crore.

• Asset quality improved with gross NPA at 2.16% and net NPA at 0.57%.

• Digital transformation accelerated, with 96% of transactions done digitally and strong growth in digital product sanctions.

Financial highlights

• Operating profit for Q2FY26 was ₹7,576 crore; H1FY26 at ₹15,812 crore.

• Net interest income for Q2FY26 was ₹11,954 crore, up 2.7% YoY; H1FY26 NII at ₹23,388 crore.

• Net interest margin (NIM) improved to 2.96% for Q2FY26; domestic NIM at 3.10%.

• Return on assets (ROA) at 1.07% for Q2FY26; return on equity (ROE) at 15.37%.

• Cost-to-income ratio increased to 51.02% in Q2FY26 from 43.60% in Q2FY25.

Outlook and guidance

• Corporate loan growth expected to reach 10%-11% for FY26, with strong pipelines in place.

• NIM guidance for the coming quarters is 2.85%-3% globally.

• Slippage ratio guidance maintained at 1%-1.25%; credit cost expected below 0.75%.

• Focus on digital growth, sustainability, and financial inclusion continues.

• ECL transition expected to have a net impact of 0.75% on CRAR over five years; credit cost may rise by 20-25 bps.