Mumbai, May 8, 2026, 19:36 IST
Bank of Baroda reported an 11.2% rise in March-quarter net profit to Rs 5,616 crore and recommended a dividend of Rs 8.50 a share, as stronger lending income and lower bad-loan ratios helped the state-owned lender close FY26 with record profit. The bank said full-year profit crossed Rs 20,000 crore, reaching Rs 20,021 crore.
The result matters now because investors had been watching whether public-sector banks could keep earnings growing while deposit costs, treasury moves and loan-loss provisions pressured margins. Several brokerage estimates reported before the result had expected Bank of Baroda’s profit at roughly Rs 4,800 crore to Rs 4,950 crore, below the number the bank finally posted.
It also landed on a busy day for state-run banks. Larger peer State Bank of India reported a 5.6% rise in quarterly standalone profit but missed market estimates, with margin and operating-profit pressure weighing on the stock.
Bank of Baroda’s net interest income, or the difference between interest earned on loans and interest paid on deposits, rose 8.7% to Rs 12,494 crore. Operating profit climbed 11.5% to Rs 9,069 crore, while global net interest margin — a gauge of lending profitability — stood at 2.89%, down from 2.98% a year earlier but up from 2.79% in the December quarter.
Loan growth stayed firm. Global advances rose 16.2% year-on-year to Rs 14.29 lakh crore, while domestic advances grew 14.5% to Rs 11.69 lakh crore. Global deposits increased 12% to Rs 16.48 lakh crore.
Asset quality improved again. Gross non-performing assets, or loans classified as bad, fell to 1.89% from 2.26% a year earlier; net NPAs dropped to 0.45% from 0.58%. The bank also said its slippage ratio, which tracks fresh bad loans, declined to 0.89% in the quarter.
For shareholders, the dividend is worth 425% of the Rs 2 face value of each share and remains subject to approval at the annual general meeting. Bank of Baroda fixed June 5 as the record date for determining eligible shareholders.
The board also approved raising up to Rs 6,000 crore through Additional Tier 1 and Tier II bonds, capital instruments banks use to strengthen regulatory buffers and fund growth.
But the quarter was not without strain. Provisions, money set aside mainly for possible loan losses, jumped to Rs 3,150 crore from Rs 1,552 crore a year earlier, and non-interest income fell 16.2% to Rs 3,967 crore. If credit costs rise again or margins soften, the profit cushion could narrow quickly.
The market did not reward the print. Bank of Baroda shares closed 2.39% lower at Rs 263.90 on the NSE on Friday, even after the bank called the quarter its highest-ever quarterly profit.
Bank of Baroda, headquartered in Vadodara, is one of India’s largest state-owned banks. The lender said its global business crossed Rs 30 lakh crore as of March 31, with a domestic network of 8,648 branches and 11,597 ATMs and cash recyclers.
