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Informist, Friday, Jul. 24, 2026

 

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--Bank of Baroda Apr-Jun net profit INR 12.78 bln 
--Analysts saw Bank of Baroda Apr-Jun net profit at INR 38.43 bln 
--Bank of Baroda Apr-Jun total income INR 366.81 bln 
--Bank of Baroda Apr-Jun net profit INR 12.78 bln vs INR 45.41 bln year ago 
--Bank of Baroda Apr-Jun total income INR 366.81 bln vs INR 357.66 bln yr ago 
--Bank of Baroda Apr-Jun net profit includes one-time cost INR 56.80 bln 
--Bank of Baroda one-time cost in Q1 on account of settlement with NMC Group 
--Bank of Baroda retains medium term note programme size at $4 bln 
--Bank of Baroda Apr-Jun provisions INR 6.43 bln vs INR 19.67 bln year ago 
--Bank of Baroda gross NPA ratio 1.99% on Jun 30 vs 1.89% qtr ago 
--Bank of Baroda net NPA ratio 0.50% on Jun 30 vs 0.45% qtr ago 
--Bank of Baroda basel III capital adequacy ratio 16.30% on Jun 30 
--Bank of Baroda: Hold floating provision of INR 25 bln on Jun 30 
--Bank of Baroda ups syndicated loan limit to $10 bln from $5 bln 
--Bank of Baroda Apr-Jun global NIM 2.77% vs 2.89% quarter ago 
--Bank of Baroda Apr-Jun net interest income INR 125.24 bln, up 9.50% on yr 
--Bank of Baroda Apr-Jun global cost of deposits 4.66% vs 4.78% qtr ago 
--Bank of Baroda Apr-Jun global yield on advances 7.37% vs 7.44% qtr ago 
--Bk of Baroda Q1 fresh slippages INR 31.83 bln vs INR 34.76 bln yr ago 
--Bank of Baroda Q1 recoveries, upgrades INR 16.9 bln vs INR 15.6 bln yr ago 
--Bank of Baroda Q1 write-offs INR 6.25 bln vs INR 21.16 bln year ago 
 

 

By Vaishali Tyagi

 

NEW DELHI – Bank of Baroda's net profit for the quarter ended June fell sharply year-on-year and came in well below Street estimates. The decline was largely due to a one-time legal settlement related to its operations in the United Arab Emirates. However, a significant year-on-year fall in provisions helped cushion the hit to the bank's bottom line. 

Bank of Baroda reported a net profit of INR 12.78 billion in the June quarter, down sharply from INR 45.41 billion a year earlier. The bank's net profit fell 72% on year and 77% on quarter. It also missed analysts' estimate of INR 38.43 billion by a wide margin.

 

On a year-on-year basis, this was the steepest fall in at least 10 years, largely due to the one-time cost. On a sequential basis, it was the steepest decline since the September 2025 quarter, when profit fell by over 88%, according to data compiled by Informist.

 

The bank reported a one-time cost of INR 56.80 billion during the quarter on account of a settlement in the UAE. Excluding the one-time cost, its net profit would have been INR 69.58 billion, up over 53% on year. 

 

Analysts' estimates had differed widely, reflecting varying assumptions about the financial impact of the one-time legal settlement. On Friday, the bank's shares ended at INR 246.45 on the National Stock Exchange, up 1.4% from the previous close. The bank announced its June quarter results after market hours. 

 

In June, Bank of Baroda had said its Abu Dhabi branch would pay $600 million to the joint administrators of NMC Health Public Ltd. Co., NMC Healthcare Ltd., and NMC Holding Ltd. to settle a case out of court. The bank said the Abu Dhabi case was resolved without any admission of wrongdoing and that a related case in the UK would also be discontinued.

 

The case pertained to the insolvency proceedings of the UK-based healthcare provider that began in 2020. Following the collapse of the publicly listed company, it was placed into administration, with legal proceedings continuing in both the UK High Court and Abu Dhabi Global Market Court. Bank of Baroda had said it would have no further liability in the matter.

 

Bank of Baroda's provisions, other than tax, fell to INR 6.43 billion in the reporting quarter, down nearly 67% on year and 80% sequentially. On a year-on-year basis, this was the steepest decline in 10 quarters. The bank also held floating provisions of INR 25 billion as of Jun. 30.

 

The lender's asset quality deteriorated marginally from the previous quarter, but improved from the previous year. The gross non-performing asset ratio was at 1.99% as of Jun. 30, higher than 1.89% a quarter ago, but down from 2.28% a year ago. The bank's net NPA ratio as of Jun. 30 was 0.50%, marginally higher than 0.45% a quarter ago but down from 0.60% a year ago. The Basel-III capital adequacy ratio was at 16.30% as of Jun. 30, up from 15.82% at the end of the March quarter. 

 

During the reporting quarter, the bank's net interest income rose nearly 10% on year to INR 125.24 billion. Total income grew about 3% year-on-year and marginally on a sequential basis to INR 366.81 billion. Total expenditure rose by nearly 4% both year-on-year and quarter-on-quarter to INR 285.54 billion. Within total expenditure, interest expense rose while other expenditure, including operating expenses and employee costs, fell marginally.

 

The bank margins contracted, with the net interest margin falling to 2.77% from 2.89% a quarter ago and 2.91% a year ago. The credit cost was significantly lower at 0.29% in Apr-Jun from 0.76% a quarter ago and 0.55% a year ago. The slippage ratio was at 0.91% in the June quarter, compared with 0.89% in the previous quarter and 1.16% a year ago.

 

Fresh slippages during the quarter were INR 31.83 billion, compared with INR 29.44 billion in the previous quarter and INR 34.76 billion a year ago. Recoveries and upgrades from non-performing assets during the quarter were INR 16.94 billion, compared with INR 22.33 billion in the trailing quarter and INR 15.60 billion a year ago. In the reporting quarter, the bank wrote off NPAs totalling INR 6.25 billion, significantly down from INR 15.12 billion in the March quarter and INR 21.16 billion a year ago. The provision coverage ratio was at 75.07% without technical write-offs, and 93.28% including the write-offs.  

 

On the business front, the bank's global gross advances rose over 17% on year to INR 14.17 trillion as on Jun. 30, while its total deposits grew nearly 14% on year to INR 16.34 trillion. The bank's domestic current account savings account ratio was at 37.72% as on Jun. 30, down 161 basis points from a year ago.

 

The bank's board Friday approved an increase in its loan facility limit to $10 billion from $5 billion, with the bucket including syndicated loans and club deals. The board also retained the size of its medium-term note programme at $4 billion with a new sub limit of $1 billion for green and environmental, social and governance bonds.  End

 

US$1 = INR 96.57

 

Edited by Saji George Titus

 

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