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Informist, Friday, Oct. 31, 2025

--Bank of Baroda: Seeing 25% higher demand in auto loans post GST rate cut 
--Bank of Baroda: Aiming 18-20% growth in retail book FY26 
--CONTEXT: Comments of Bk of Baroda mgmt at media call post Q2 fincl results 
--Bank of Baroda: See 11-13% credit growth for FY26

MUMBAI – Bank of Baroda remains optimistic of increasing its advances in the second half of the financial year 2025-26 (Apr-Mar) as it aims to grow its retail loan book by more than 18%. "The overall guidance on advances remains the same, 11-13% growth. Of that, retail has been (growing) almost at 18-20% for the last many quarters, maybe around 15-16 quarters," the management told a press conference after the bank detailed its Jul-Sept earnings.

"That is the strength of the bank in terms of creating retail demand," the management said. "Particularly post-GST (goods and services tax rate cuts), we have seen very strong retail demand, particularly products like auto loans and a couple of other schemes. Going forward also, full-year basis, I am targeting around 18-20% growth in the retail book, which consists of housing, auto, education, and other schemes."

The lender beat Street estimates by reporting a net profit of INR 48.09 billion for the September quarter. The net profit fell 8% on year owing to a sharp fall in income from wholesale banking and income on investments. However, a sharp fall in provisions helped to limit the fall in profit. Sequentially, the net profit declined nearly 6%.

The global advances of the state-owned lender were up 11.9% on year at INR 12.79 trillion as of Sept. 30. Retail loans were up 17.6% on year at INR 2.73 trillion as of Sept. 30.

On Sept. 3, the GST Council decided to overhaul the indirect tax regime by consolidating the four slabs--5%, 12%, 18%, and 28%--into a two-slab structure of 5% and 18%. It also reduced tax rates on a host of common use and on aspirational items like cars. The changes came into effect from Sept. 22.

"Post that, we are seeing almost 25% increase in disbursement vis-a-vis the same period last year," the bank's management said. "From 23rd September till 30th October, disbursement basis if you compare, it is almost 26% higher."

The lender has a strong corporate loan pipeline which may grow by 10-11% in the near future, the management said. "In terms of pipeline, we have almost 40,000 crore (INR 400 billion) of sanctions which are yet to be disbursed," it said. "There can be a spillover of the earlier quarter getting into this quarter because we have not disbursed those yet. Secondly, we have another 25,000 crore (INR 250 billion) of proposals which are under process."

Friday, shares of Bank of Baroda closed 2% higher at INR 278.40 on the National Stock Exchange. The bank detailed its September quarter earnings after market hours.  End

Reported by Sagar Sen and Rati Chaphekar

Edited by Rajeev Pai

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