State-owned Bank of Baroda (BoB) on Friday reported a 71.8% year-on-year decline in net profit to Rs 1,278 crore for the quarter ended June 30, 2026, after taking a one-time exceptional charge of Rs 5,680 crore (equivalent to $600 million) towards a settlement payout.
Excluding the exceptional item, the lender's net profit would have stood at Rs 5,528 crore during the quarter, higher than Rs 4,541 crore reported in the year-ago period.
Net interest income (NII) rose 9.5% year-on-year to Rs 12,524 crore, while operating profit declined marginally by 1.3% to Rs 8,127 crore. Non-interest income fell 25.8% to Rs 3,470 crore. Global net interest margin (NIM) narrowed to 2.77% from 2.91% a year ago, while its return on assets fell sharply to 0.25% due to the exceptional charge. Excluding the one-time impact, return on assets would have been 1.10%.
Despite the hit to profitability, the bank posted healthy business growth and stable asset quality. Global business expanded 15.4% year-on-year to Rs 30.5 lakh crore, comprising global deposits of Rs 16.34 lakh crore and global advances of Rs 14.17 lakh crore.
Domestic advances grew 16.1% year-on-year to Rs 11.51 lakh crore, led by an 18.4% increase in organic retail loans. Growth in the retail portfolio was driven by auto loans (25.3%), mortgage loans (27.4%), home loans (14.7%) and education loans (10.8%).
The bank's agriculture and MSME portfolios also remained robust, growing 18.7% and 20.3%, respectively. Corporate advances rose 15.3% to Rs 4.27 lakh crore.
On the liabilities side, domestic deposits increased 14.7% to Rs 13.82 lakh crore, while domestic CASA deposits rose 10% to Rs 5.21 lakh crore.
Asset quality remained healthy, with the gross non-performing asset (GNPA) ratio improving to 1.99% at the end of June 2026 from 2.28% a year ago. The net NPA ratio declined to 0.50% from 0.60% in the corresponding quarter last year. The provision coverage ratio stood at 93.28%.
The lender's slippage ratio improved to 0.91% during the quarter from 1.16% a year earlier, while credit cost moderated to 0.29% from 0.55%.
