Earnings Review
Wholesale banking ops pull down Bank of Baroda Q2 PAT
This story was originally published at 19:44 IST on 31 October 2025
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--Bank of Baroda Jul-Sept earnings detailed table
--Bank of Baroda Jul-Sept slippage ratio 0.91% vs 1.07% year ago
--Bank of Baroda Jul-Sept credit cost 0.29% vs 0.65% year ago
--Bank of Baroda Jul-Sept write-off INR 11.35 bln vs INR 35.92 bln year ago
--Bank of Baroda Q2 recoveries, upgrades INR 18.97 bln vs INR 18.37 bln
--Bk of Baroda Jul-Sept fresh slippages INR 26.69 bln vs INR 27.88 bln yr ago
--Bank of Baroda: MSME loans INR 1.44 tln as on Sept 30, up 13.9% on yr
--Bank of Baroda: Retail loans INR 2.73 tln as on Sept 30, up 17.6% on yr
--Bank of Baroda: Corporate loans INR 4.01 tln as on Sept 30, up 3% on yr
--Bk of Baroda domestic CASA ratio at 38.42% Sept 30 vs 39.52% year ago
--Bank of Baroda global deposits INR 15.00 tln as on Sept 30, up 9.3% on yr
--Bank of Baroda global advances INR 12.79 tln as on Sept 30, up 11.9% on yr
--Bank of Baroda Jul-Sept cost of deposits 4.91%, down 14 bps on quarter
--Bank of Baroda Jul-Sept domestic NIM 3.10%, up 4 bps on quarter
--Bank of Baroda Jul-Sept global NIM 2.96% up 5 bps on quarter
--Bank of Baroda Jul-Sept net interest income INR 119.54 bln, up 2.7% YoY
--Bank of Baroda Jul-Sept net interest income INR 119.54 bln, up 4.5% QoQ
--Bank of Baroda Basel III capital adequacy ratio 16.54% as on Sept 30
--Bank of Baroda net NPA ratio 0.57% as on Sept 30 vs 0.60% qtr ago
--Bank of Baroda gross NPA ratio 2.16% as on Sept 30 vs 2.28% qtr ago
--Bank of Baroda Jul-Sept total income INR 350.26 bln vs INR 354.45 bln yr ago
-- Bank of Baroda Jul-Sept net profit INR 48.09 bln vs INR 52.38 bln year ago
--Analysts saw Bank of Baroda Jul-Sept net profit at INR 41.87 bln
--Bank of Baroda Jul-Sept net profit INR 48.09 bln
BY Vaishali Tyagi
MUMBAI – Bank of Baroda reported a fall in its net profit in the September quarter due to a sharp fall in income from wholesale banking and income on investments. However, a sharp fall in provisions helped limit the fall in profit.
The state-owned bank's net profit fell by over 8% on year to INR 48.09 billion in the September quarter. Sequentially, the net profit declined by nearly 6%. However, the bank's net profit exceeded analysts' consensus estimate of INR 41.87 billion.
The bank's income from wholesale banking fell to INR 21 billion during the quarter from INR 47.20 billion a year ago. The bank's total income fell by over 1% on year and 2% on quarter to INR 350.26 billion in Jul-Sept, with income from investments declining by over 2% on year to INR 63.76 billion.
The provisions and contingencies of the bank fell by over 47% from a year ago to INR 12.32 billion in Jul-Sept. The bank's fresh slippages in the September quarter fell to INR 26.69 billion from INR 34.76 billion a quarter ago. The bank wrote off INR 11.35 billion in the September quarter, significantly lower than the INR 21.16 billion in the previous quarter and INR 35.92 billion a year ago. The bank's upgrades and recoveries in the Jul-Sept quarter totalled INR 18.97 billion, up from INR 15.60 billion in the previous quarter.
The bank's slippage ratio was 0.91% as of Sept. 30, up 16 basis points from a year ago and down 25 bps from a quarter ago. Bank of Baroda's gross non-performing assets ratio declined 34 bps on year to 2.16% as on Sept. 30. The net non-performing assets ratio was at 0.57%.
A slight rise in operating expenditure also weighed on the bank's net profit. The bank's operating expenses rose nearly 8% on year to INR 78.93 billion. Within operating expenses, the bank's other operating expenses were INR 38.32 billion, up nearly 17% on-year. The employee costs remained broadly unchanged year-on-year at INR 40.61 billion, but fell nearly 6% on a quarterly basis. Total expenses rose nearly 6% on year to INR 274.5 billion in Jul-Sept.
A significant fall in other income also weighed on the bank's bottom line. The bank's other income fell 32% year on year to INR 35.15 billion in the September quarter. The other income also fell by nearly 25% sequentially. A significant fall in trading income weighed on the bank's other income. Trading income fell by more than half on year to INR 10.86 billion in the September quarter from INR 22.26 billion a quarter ago. In other income, the bank's fee income remained broadly unchanged year-on-year at INR 17.90 billion.
The bank's net interest income – the difference between interest earned and interest expended — rose 2.7% on year to INR 119.54 billion. Brokerage firms expected a slight decline in net interest income for the reporting quarter, due to a contraction in the net interest margin. The bank's net interest income was expected to decline by around 2% on year to INR 113.89 billion, according to the estimates. The bank's global net interest margin was 2.96% in the September quarter, up from 2.91% in the June quarter, while its domestic NIM was up 4 bps on quarter to 3.10%
On the business front, the bank's global advances were at INR 12.79 trillion as of Sept. 30, up 12% on year. Of the total advances, retail advances amounted to INR 2.73 trillion, up 17.6% on year. Corporate advances were at INR 4.01 trillion, up 3% on year and loans to small and medium enterprises were at INR 1.44 trillion, up 14%.
The current account savings account deposit ratio of the state-owned lender was at 38.42% as on Sept. 30, lower than 39.33% in the June quarter and 39.52% a year ago. The bank's total global deposits rose 9.3% on year to INR 15.00 trillion as of Sept. 30, with term deposits rising nearly 12% to INR 7.83 trillion.
The bank's Basel III capital adequacy ratio fell to 16.54% as on Sept. 30 from 17.61% a quarter ago. The bank's global cost of deposits declined to 4.91% in the September quarter from 5.05% in the previous quarter and 5.12% in the same quarter last year.
Bank of Baroda's net profit in Apr-Sept fell by 3.6% on year to INR 93.51 billion. Friday, shares of the lender ended at INR 278.40 on the National Stock Exchange, up 2.1% over Thursday. The public sector bank released its results post-market hours. End
Edited by Saji George Titus
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