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Informist, Friday, Jul. 24, 2026

MUMBAI – Bank of Baroda has set a target of $4 billion to $5 billion to be raised through foreign currency non-resident bank deposits and overseas borrowing by the end of September, Managing Director and Chief Executive Officer Debadatta Chand said at a post-earnings press conference Friday. The official said the bank has so far raised $700 million through FCNR(B) deposits and expects that these deposits will cross $1 billion mark by the end of July.

The lender introduced a special scheme to attract FCNR dollar-denominated bank deposits in June and has changed the interest rates on deposits twice since it launched. The bank set a rate of 6% for three- to four-year tenor deposits, 6.10% for four to below-five-year deposits, and 6.25% for five-year deposits. The bank had introduced this special scheme after the Reserve Bank of India announced a concessional dollar-rupee swap facility for fresh FCNR(B) deposits. 

"We're quite hopeful of our initial target of raising roughly around four (billion dollars) to five billion (dollars)," Chand said. Of the $4 billion to $5 billion target, the bank is planning to raise $1 billion through an external commercial borrowing window and at least $2 billion from FCNR(B) deposits. 

The public sector lender reported a net profit of INR 12.78 billion in the June quarter, down 72% from INR 45.41 billion a year earlier. If not for the one-time legal settlement related to its operations in the United Arab Emirates, the bank's profit would have been INR 55.28 billion, up nearly 22% on year, according to the bank's investors presentation.  

Chand expects the bank's credit growth to be 12-14% and deposit growth at 10-12% in the coming quarters. He expects the net interest margin to be 2.75-2.95% in the coming quarters and return on assets of more than 1% during the September quarter.

During the June quarter, the bank's net interest margin was 2.77%, down from 2.89% in the previous quarter and 2.91% in the year-ago quarter. "The bank is quite optimally placed in terms of growth and also keeping interest of margin while continuing the business," Chand said.  

Although the bank's total deposits were up nearly 14% on year at INR 16.34 trillion as of Jun. 30, but this was 0.9% down sequentially. Similarly, advances were INR 14.17 trillion as of Jun. 30, up 17.4% on year but 0.9% down sequentially. Chand attributed this decline in deposits and advances on a sequential basis to seasonal factors. 

The bank is planning to hire 7,000 employees in 2026-27 (Apr-Mar). Friday, shares of Bank of Baroda closed 1.36% higher at INR 246.45 on the National Stock Exchange.  End

Reported by J. Navya Sruthi and Devanshu Singla 

Edited by Deepshikha Bhardwaj

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