The Bank delivers strong operating performance with calibrated growth and resilient asset quality
FinTech BizNews Service
Mumbai, July 25, 2025: Bank of Baroda today announced its Financial Results for the Quarter Year ended 30th June 2025.
Highlights
· Operating Profit grew by 15% YoY to INR 8,236 crore in Q1FY26.
· Bank reported a Net Profit of INR 4,541 crore for Q1FY26 as against INR 4,458 crore in Q1FY25.
· The growth in operating profit was supported by 88% YoY growth in Non-Interest Income to INR 4,675 crore in Q1FY26.
· Growth in Non-Interest income was primarily driven by ~7x growth in Treasury Income which stands at INR 2,226 crore.
· Steady growth in operating income and contained growth in operating expenses led to a YoY reduction of 30 bps in Cost to Income ratio which stands at 48.87% for Q1FY26.
· Return on Assets (ROA) remains above 1% and stands at 1.03% for Q1FY26.
· Return on Equity (ROE) stands at 15.05% for Q1FY26.
· Global Net Interest Margin (NIM) for Q1FY26 is 2.91% with Domestic NIM at 3.06%.
· Bank continues to maintain strong Asset quality with reduction in GNPA by 60 bps YoY to 2.28% from 2.88% in Q1FY26.
· Bank’s NNPA also reduced 9 bps to 0.60% in Q1FY26 as against 0.69% in Q1FY25.
· BOB’s balance sheet remains robust with healthy Provision Coverage Ratio (PCR) of 93.18% with TWO & at 74.04% without TWO.
· Credit cost remains below 0.75% at 0.55% for Q1FY26.
· BOB’s Global Advances registered a growth of 12.6% YoY and Domestic advances grew by 12.4% in Q1FY26 led by robust retail loan book growth.
· Bank’s organic Retail Advances grew by 17.5%, driven by strong growth across segments such as Mortgage Loan (18.6%), Auto Loan (17.9%), Home Loan (16.5%), Education Loan (15.4%) and Personal Loan (19.5%).
· Share of Retail, Agri Loans and MSME loans (RAM) in advances improved by 300 bps YoY to 62.7%. RAM portfolio grew by 18% in Q1FY26.
Profitability
v Net Profit for Q1FY26 stands at INR 4,541 crore (+1.9% YoY) as against INR 4,458 crore in Q1FY25.
v Net Interest Income for Q1FY26 stands at INR 11,435 crore.
v Non-Interest Income for Q1FY26 stands at INR 4,675 crore up by 88% YoY.
v Global NIM for Q1FY26 stands at 2.91% with Domestic NIM at 3.06%.
v Operating Profit for Q1FY26 increased by 15% to INR 8,236 crore.
v Cost to Income ratio reduced by 30 bps YoY and stands at 48.87% for Q1FY26.
v Return on Assets stands at 1.03% for Q1FY26.
v Return on Equity stands at 15.05% for Q1FY26
Asset Quality
v The Gross NPA of the Bank reduced by 10.7% YoY to INR 27,572 crore in Q1FY26 and Gross NPA Ratio improved to 2.28% in Q1FY26 from 2.88% in Q1FY25.
v The Net NPA Ratio of the Bank also reduced by 9 bps to 0.60% in Q1FY26
v The Provision Coverage Ratio of the Bank stood at 93.18% including TWO and 74.04% excluding TWO for Q1FY26.
v Slippage ratio stands at 1.16% for Q1FY26.
v Credit cost stands at 0.55% for Q1FY26.
Capital Adequacy
v CRAR of the Bank stands at 17.61% in Jun’25. Tier-I stood at 15.15% (CET-1 at 14.12%, AT1 at 1.03%) and Tier-II stood at 2.46% as of Jun’25.
v The CRAR and CET-1 of consolidated entity stands at 18.29% and 14.84% respectively
v The Liquidity Coverage Ratio (LCR) consolidated stands at 119% (approx.).
Business Performance
v Domestic Advances of the Bank increased to INR 9,91,363 crore, +12.4% YoY.
v Global Advances of the Bank increased to INR 12,07,056 crore, +12.6% YoY.
v Domestic Deposits increased by 8.1% YoY to INR 12,04,283 crore in Jun’25.
v Global Deposits increased by 9.1% YoY to INR 14,35,634 crore.
v Domestic CASA deposits registered a growth of 5.5% YoY and stands at INR 4,73,637 crore as of 30th June 2025.
v International Deposits grew by 14.8% on a YoY basis to INR 2,31,351 crore in Jun’25.
v Organic Retail Advances grew by 17.5%, led by strong growth across segments such as Mortgage Loan (18.6%), Auto Loan (17.9%), Home Loan (16.5%), Education Loan (15.4%) and Personal Loan (19.5%) on a YoY basis.
v Agriculture loan portfolio grew by 16.2% YoY to INR 1,61,764 crore.
v Organic MSME portfolio grew by 13.1% YoY to INR 1,35,660 crore.
v Corporate advances registered a growth of 4.2% YoY and stands at INR 3,70,266 crore.
Financial results for Quarter ended 30th June 2025
Particulars (INR crore) | Q1FY25 | Q4FY25 | Q1FY26 | YoY(%) |
Interest Income | 29,629 | 31,117 | 31,091 | 4.9 |
Interest Expenses | 18,029 | 19,622 | 19,657 | 9.0 |
Net Interest Income (NII) | 11,600 | 11,494 | 11,435 | -1.4 |
Non-Interest Income | 2,487 | 4,735 | 4,675 | 88.0 |
Operating Income | 14,087 | 16,229 | 16,109 | 14.4 |
Operating Expenses | 6,926 | 8,097 | 7,873 | 13.7 |
Operating Profit | 7,161 | 8,132 | 8,236 | 15.0 |
Total Provisions (other than tax) and contingencies | 1,011 | 1,552 | 1,967 | 94.6 |
of which, Provision for NPA Bad Debts Written-off | 1,269 | 1,297 | 1,686 | 32.9 |
Profit before Tax | 6,150 | 6,581 | 6,270 | 1.9 |
Provision for Tax | 1,692 | 1,533 | 1,728 | 2.1 |
Net Profit | 4,458 | 5,048 | 4,541 | 1.9 |
*Includes Interest on Income Tax Refund of INR 370 crore in Q1FY26, INR 475 Crore in Q4FY25 and NIL in Q1FY25.
Business position
Particulars (INR crore) | Jun 30 2024 | Mar 31 2025 | Jun 30 2025 | YoY (%) |
Domestic deposits | 11,14,039 | 12,42,169 | 12,04,283 | 8.1 |
Domestic CASA | 4,49,019 | 4,96,462 | 4,73,637 | 5.5 |
Global deposits | 13,15,573 | 14,72,034 | 14,35,634 | 9.1 |
Domestic advances | 8,81,785 | 10,21,112 | 9,91,363 | 12.4 |
Of which, retail loan portfolio (Organic) | 2,22,494 | 2,56,633 | 2,61,479 | 17.5 |
Global advances | 10,71,681 | 12,30,461 | 12,07,056 | 12.6 |
Key Ratios
Particulars | Q1FY25 | Q4FY25 | Q1FY26 |
NIM Global %* | 3.18 | 2.98 | 2.91 |
Return on Assets (%) | 1.13 | 1.16 | 1.03 |
CRAR (%) | 16.82 | 17.19 | 17.61 |
CET-1 (%) | 13.08 | 13.78 | 14.12 |
Gross NPA (%) | 2.88 | 2.26 | 2.28 |
Net NPA (%) | 0.69 | 0.58 | 0.60 |
PCR (with TWO) (%) | 93.32 | 93.29 | 93.18 |
*Including impact of reclassification of Interest on Income Tax Refund
