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Bank of Baroda Q2 Results: Profit hits record high, but provisions jump 93%; asset quality improves - Published OnOct 30, 2026 | 17:07 IST - Last Updated OnOct 30, 2026 | 23:11 IST Strong non-interest income growth and healthier loan asset quality drove operating profit higher, even as provisioning expenses nearly doubled during the quarter. Discover how management plans to sustain deposit mobilization and maintain margins amid shifting liquidity. State-owned lender Bank of Baroda Ltd on Friday (October 30) reported its highest-ever quarterly net profit of ₹6,532 crore for the second quarter of FY27, registering a 35.8% year-on-year growth. The bank's operating profit also reached a record ₹11,430 crore, rising 50.9% from the corresponding quarter last year. Net interest income (NII) rose 9% year-on-year to ₹13,026 crore from ₹11,954 crore. Non-interest income surged 95.8% to ₹6,881 crore, taking the bank's operating income to ₹19,907 crore, up 28.7% year-on-year. Provisions surged 93.3% year-on-year to ₹2,381.8 crore from ₹1,232.47 crore. On a sequential basis, provisions increased from ₹643.03 crore in the previous quarter. Operating expenses rose 7.4% to ₹8,477 crore during the quarter. Global net interest margin (NIM) stood at 2.74%. ALSO READ | Bank of Baroda yet to receive BR Shetty's $15 billion lawsuit papers First Half For the first half of FY27, Bank of Baroda reported a net profit of ₹7,810 crore. NII increased 9.2% to ₹25,551 crore, while non-interest income rose 26.4% to ₹10,351 crore. Operating profit stood at ₹19,557 crore, up 23.7%, and operating income increased 13.7% to ₹35,902 crore. Operating expenses rose 3.7% to ₹16,345 crore. The bank's return on assets (ROA) improved 19 basis points year-on-year to 1.26% in Q2FY27, while return on equity (ROE) increased 363 basis points to 19.28%. For H1FY27, ROA stood at 0.75% and ROE at 11.63%. The global NIM for the first half stood at 2.76%. Asset Quality Bank of Baroda continued to report an improvement in asset quality, with its gross non-performing asset (GNPA) ratio declining 38 basis points year-on-year to 1.78% as of September 2026, compared with 2.16% a year ago. The net non-performing asset (NNPA) ratio declined 20 basis points to 0.37%. The provision coverage ratio (PCR), including technical write-offs (TWO), improved 144 basis points to 94.65%, while PCR excluding TWO increased 535 basis points to 79.48%. ALSO READ | Bank of Baroda subsidiary commences NBFC operations, to focus on debt markets The slippage ratio declined 22 basis points year-on-year to 0.69% in Q2FY27. For H1FY27, it stood at 0.67%, compared with 0.90% in the year-ago period. Credit cost stood at 0.55% for the quarter and 0.42% for the first half. Business Performance The bank's global business increased 17.2% year-on-year to ₹32,57,883 crore as of September 30, 2026. Global advances grew 18.3% to ₹15,12,448 crore, while domestic advances increased 13.5% to ₹11,87,944 crore. International advances rose 39.7% to ₹3,24,504 crore. Global deposits increased 16.4% year-on-year to ₹17,45,435 crore. Domestic deposits grew 16.6% to ₹14,83,521 crore, while international deposits rose 14.9% to ₹2,61,915 crore. Domestic current account and savings account (CASA) deposits increased 10.4% to ₹5,39,515 crore. The retail, agriculture and micro, small and medium enterprises (RAM) portfolio grew 18% year-on-year, accounting for 64.2% of domestic advances. ALSO READ | Bank of Baroda Q2 update: Global business rises 17.5% YoY to ₹32.64 lakh crore Organic retail advances increased 18.6%, driven by growth in auto loans (27.8%), mortgage loans (20.3%), home loans (14.6%) and education loans (9.9%). The agriculture loan portfolio grew 19% to ₹2,01,946 crore, while the organic MSME portfolio increased 21.3% to ₹1,75,207 crore. Corporate advances rose 6.3% to ₹4,25,736 crore. Capital Adequacy Bank of Baroda's capital adequacy ratio (CRAR) stood at 16.61% as of September 2026. Tier-I capital was 14.70%, comprising common equity tier-I (CET-1) capital of 14.20% and additional tier-I (AT1) capital of 0.50%. Tier-II capital stood at 1.91%. The consolidated entity's CRAR and CET-1 ratios stood at 17.01% and 14.65%, respectively. The quarterly average standalone liquidity coverage ratio (LCR) was approximately 133.6%. Shares of Bank of Baroda Ltd ended at ₹238.50, up by ₹3.00, or 1.24%, on the BSE. ALSO READ | BR Shetty files suit against Bank of Baroda, seeks $15 billion for alleged role in NMC fraud
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