Mumbai, May 8, 2026, 19:36 IST
Bank of Baroda logged an 11.2% jump in net profit for the March quarter, coming in at Rs 5,616 crore. The board has proposed a dividend of Rs 8.50 per share. Stronger lending income and a drop in bad-loan ratios underpinned the state-owned lender’s performance, closing FY26 with record earnings. Full-year profit broke through the Rs 20,000 crore mark, landing at Rs 20,021 crore, the bank said.
This time, it counted: investors were waiting to see if public-sector banks could keep up earnings growth, even as deposit costs rose and treasury actions plus provisions for bad loans squeezed margins. Before the result, brokerages had pegged Bank of Baroda’s profit somewhere between Rs 4,800 crore and Rs 4,950 crore—a range the lender ended up topping.
It came as public sector lenders were already in focus. State Bank of India, the bigger player, posted a 5.6% increase in standalone quarterly profit, though that fell short of analyst expectations. Margins and operating profit both came under pressure, dragging the stock lower.
Bank of Baroda reported net interest income up 8.7% at Rs 12,494 crore. Operating profit came in at Rs 9,069 crore, an 11.5% increase. The bank’s global net interest margin was 2.89%—down against last year’s 2.98% but an improvement from 2.79% in the December quarter.
Loan growth held steady, with global advances climbing 16.2% year-on-year to Rs 14.29 lakh crore. Domestic advances rose 14.5% to Rs 11.69 lakh crore. On the deposit side, the global figure moved up 12% to Rs 16.48 lakh crore.
Asset quality ticked higher. Gross non-performing assets—bad loans—came in at 1.89%, down from 2.26% a year ago. Net NPAs dropped too, hitting 0.45% versus 0.58%. The bank reported its slippage ratio dropped for the quarter, reaching 0.89%.
Shareholders stand to receive a dividend equal to 425% of the Rs 2 face value per share, pending approval at the annual general meeting. Bank of Baroda has set June 5 as the record date to identify which shareholders qualify.
The board gave the nod to raising as much as Rs 6,000 crore via Additional Tier 1 and Tier II bonds—tools banks turn to for bolstering capital buffers and supporting expansion.
Still, the quarter showed some pressure points. Provisions—mostly buffers against potential loan losses—rose sharply to Rs 3,150 crore, more than double last year’s Rs 1,552 crore. Non-interest income slid 16.2% to Rs 3,967 crore. Any uptick in credit costs or a squeeze on margins, and profits could erode fast.
Bank of Baroda posted its best-ever quarterly profit, but the stock still slipped 2.39% to Rs 263.90 on the NSE on Friday. The market barely blinked at the announcement.
Bank of Baroda, based in Vadodara, stands among the country’s biggest government-owned lenders. As of March 31, the bank reported its global business topped Rs 30 lakh crore. It operates 8,648 branches across India, along with 11,597 ATMs and cash recyclers domestically.
