Bank of Baroda (BANKBARODA) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 net profit rose 35.8% YoY to a record ₹6,532 crore; operating profit rose 50.9% to a record ₹11,430 crore.

• Global business reached ₹32,57,883 crore, up 17.2% YoY; advances grew 18.3% and deposits 16.4%.

• H1 FY27 net profit fell 16.5% YoY to ₹7,810 crore, including a ₹5,680 crore NMC settlement charge; operating profit rose 23.7% to ₹19,557 crore.

Financial highlights

• Q2 NII rose 9.0% YoY to ₹13,026 crore; non-interest income increased 95.8% to ₹6,881 crore, lifting operating income 28.7% to ₹19,907 crore.

• Q2 PBT rose 42.6% YoY to ₹9,048 crore; operating expenses increased 7.4% to ₹8,477 crore and provisions excluding tax were ₹2,382 crore.

• H1 NII grew 9.2% to ₹25,551 crore; H1 PBT was ₹10,852 crore, down 14.0% YoY.

• Consolidated Q2 profit after tax increased 31.2% YoY to ₹6,737 crore; EPS was ₹13.03, up 31.2%.

• Q2 operating profit included NSE-related gains; NSE-related cash profit was ₹1,349 crore, while operating profit excluding the entire NSE impact was ₹7,749 crore.

Outlook and guidance

• FY27 credit growth guidance raised to 13%-15% from 12%-14%; deposit growth guidance raised to 11%-13% from 10%-12%.

• FY27 NIM guidance remains 2.75%-2.95%, with expectations toward the higher end; credit cost guidance remains below 0.6%.

• Q2-Q4 ROA is expected to exceed 1% each quarter; full-year ROA outlook remains near 1%, with ROE guidance of 15%-16%.

• Normalized recovery from technical write-offs is ₹750 crore per quarter, expected in Q3 and Q4; fee income is expected to improve over the next two quarters.