BoB Q2 Results: Net Profit Drops 8.2% To Rs 4,809 Cr, NIM & Asset Quality Improve

On Friday, October 31, Bank of Baroda released its financial results for the quarter and a half that ended on September 30, 2025. The bank recorded mixed results. In Q2FY26, interest income climbed 4.1% YoY to Rs 31,511 crore, while interest expenses jumped 4.9% to Rs 19,557 crore. As a result, net interest income (NII) increased by 2.7% YoY to Rs 11,954 crore.

Non-interest income dropped 32% YoY to Rs 3,515 crore, boosting total operating income to Rs 15,469 crore, though it was down 7.9% YoY.

BoB said that higher expenses caused its operating profit to drop 20.1% YoY to Rs 7,576 crore. To Rs 1,232 crore, provisions fell precipitously by 47.2%, with NPA-related provisions falling by 49.1%. Net profit fell 8.2% to Rs 4,809 crore, while profit before tax was Rs 6,343 crore, down 11.2% YoY.

The bank's interest income improved 4.5% YoY to Rs 62,602 crore during H1FY26, while NII grew by 0.7% to Rs 23,388 crore. While the operating profit dropped 5% to Rs 15,812 crore, non-interest income jumped 7% YoY to Rs 8,189 crore. The half-year's net profit was Rs 9,351 crore, a 3.6% YoY drop.

The bank reported robust growth in deposits and credit in terms of business performance. As of September 30, 2025, total deposits were Rs 12,71,992 crore, up 9.7% YoY, with domestic CASA deposits up 6.6% to Rs 4,88,660 crore. Due to strong credit demand and retail momentum, advances increased 11.5% YoY to Rs 10,46,506 crore, while the retail loan portfolio climbed 17.6% to Rs 2,73,116 crore.

Even while the net interest margin (NIM) was mostly the same, the bank's robust loan growth helped counteract margin pressure by generating a significant rise in interest-earning assets. Global advances increased 11.9% YoY in Q2FY26, while domestic advances climbed 11.5% thanks to a notable 17.6% boost in retail loans.

In summary, solid credit growth and strong retail demand helped sustain earnings momentum and offset margin compression, even if margins were somewhat impacted by higher interest expenses.

With Net NPA down 3 bps YoY to 0.57% and Gross NPA down 34 bps YoY to 2.16%, the bank maintained good asset quality in Q2FY26. The slippage ratio dropped to 0.91% for the quarter, while the Provision Coverage Ratio (PCR) was strong at 93.21%, indicating further improvements in asset quality.

With 8,446 branches, 11,457 ATMs, and cash recyclers backed by self-service channels, Bank of Baroda is one of the largest banks in India. With a network of 82 overseas offices spread across 17 countries and 38 branches of overseas JV/Associate, the bank has a substantial global footprint.