Bank of Baroda announced financial results for the July–September 2025 quarter (Q2 FY26) on October 31. Bank profits fell slightly because of lower margins, even though business grew strongly and loan quality improved. The bank remains financially healthy and well-capitalized.
Highlights of the Financial Results:
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Net Profit: The bank’s profit went down to ₹4,809 crore. This is an 8% decline year-on-year (YoY) compared to ₹5,237 crore in the same quarter last year (Q2 FY25). The drop suggests that while the bank earned more interest income, other factors such as higher provisions, operating costs, or lower treasury gains — may have reduced overall profitability.
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Income slightly down: Total income dropped a bit (by 1.2%) to ₹35,026 crore.
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Profit before tax (PBT): Also declined by 11.2% to ₹6,343 crore.
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Net Interest Income (NII): This is the money the bank earns from loans after paying interest on deposits. It rose slightly by 2.7% to ₹11,954 crore. This represents a 2.7% YoY increase from ₹11,637 crore last year.A modest rise in NII indicates that the bank’s core lending business remained stable, even though profit growth was muted.
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Net Interest Margin (NIM): This shows how profitably the bank lends money.
It fell to 2.96% from 3.11%, meaning margins got thinner. -
Business Growth: The bank’s total business (deposits plus loans) increased by 10.5% year-on-year to reach ₹27.78 lakh crore. Within this, deposits rose 10.5% to ₹12.72 lakh crore, while loans (advances) grew 11.5% to ₹10.46 lakh crore, reflecting healthy growth in both lending and customer deposits.
- Gross Non-Performing Assets (GNPA): The bank’s GNPA improved to 2.16% as of September 30, 2025, down from 2.28% in June 2025 and 2.5% a year earlier. This indicates that fewer loans are becoming bad, reflecting stronger credit discipline and better recovery efforts.
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Net Non-Performing Assets (NNPA): The bank’s net non-performing assets (NNPA) declined to 0.57% in Q2 FY26, from 0.6% in the previous quarter (Q1 FY26). This shows that the bank’s stressed assets, after making provisions, have reduced further, indicating improved asset quality.
Despite a slight fall in profit, Bank of Baroda’s financial health remains strong. The bank’s core income has grown modestly, asset quality has improved but net profit fell likely due to non-core pressures like higher provisions, expenses, or lower fee/treasury income.
