JOIN WITH US -FOR QUICK BANKING UPDATESDate: July 25, 2025
Location: Mumbai
Kicking off the fiscal year with confidence, Bank of Baroda (BoB) has announced a robust financial performance for Q1 FY26, reporting a net profit of Rs. 4,541 crore, a marginal but stable 1.9% increase YoY compared to Rs. 4,458 crore in Q1 FY25.
What makes the Q1 performance impressive isn’t just the profit figure—but what’s fueling it. The bank clocked an 88% year-on-year surge in Non-Interest Income, reaching Rs. 4,675 crore, largely driven by a sevenfold jump in treasury income to Rs. 2,226 crore.
Operating profit jumped 15% YoY to Rs. 8,236 crore, aided by prudent cost management and income diversification. The Cost-to-Income Ratio improved to 48.87%, down 30 basis points from the previous year.
On the retail lending front, BoB flexed strong momentum, with organic retail advances soaring 17.5% YoY. Personal loans led the charge with 19.5% growth, followed by auto loans (17.9%), mortgage loans (18.6%), and home loans (16.5%). The RAM (Retail, Agri, MSME) segment now forms 62.7% of total advances, showing a healthy portfolio shift.
Asset quality remained strong with Gross NPA down to 2.28% (from 2.88% a year ago) and Net NPA easing to 0.60%. The Provision Coverage Ratio (PCR) held firm at 93.18%.
On capital adequacy, the CRAR stood at 17.61%, with CET-1 ratio improving to 14.12%. Domestic advances grew by 12.4% YoY, while global deposits rose 9.1%, indicating sustained franchise strength.
Despite slight pressure on Net Interest Margin (NIM)—down to 2.91% globally and 3.06% domestically—the overall profitability matrix remains solid, with Return on Assets at 1.03% and Return on Equity at 15.05%.
Bank of Baroda’s Q1FY26 performance clearly reflects resilience, diversified revenue streams, and sustained credit growth. As the banking giant continues its calibrated strategy, stakeholders remain optimistic about the quarters ahead.
