Bank of Baroda reported a tiny rise in net profit by 1.8% to Rs 4,541 crore in the June quarter compared to Rs 4,458 crore a year ago, as net interest income (NII) saw a dip.

The state-owned lender’s NII fell 1.4% to Rs 11,435 crore versus Rs 11,600 crore in the earlier-year.

Total interest income rose 4.9% to Rs 31,091 crore from Rs 29,628 crore in the same period of the previous year.

NIM

Global net interest margin (NIM) for the June quarter was 2.91%, down from 3.18% a year ago and 2.98% in the preceding March quarter. Domestic NIM was at 3.06% as on 30 June 2025.

NPAs

The bank’s gross non-performing assets (NPAs) stood at 2.28% compared to 2.26% in the preceding March quarter and 2.88% a year ago.

Net NPA was at 0.6% in the June quarter as against 0.58% a quarter ago and 0.69% a year ago.

Slippages for the quarter was around Rs 500 crore higher in the June quarter than the lender’s average run rate of Rs 2,800-Rs 2,900 crore per quarter.

The provision coverage ratio stood at 93.18% while the slippage ratio was at 1.16% and credit cost at 0.55%.

Operating profit grew 15% year-on-year to Rs 8,236 crore in Q1 of FY26, led by a surge in non-interest income which grew 88% to Rs 4,675 crore.

Loan growth

In the fiscal first quarter, the bank’s overall loan book grew 12.6% year-on-year, led by a 18% rise in the RAM (Retail, Agri and MSME) segment. Domestic advances grew 12.4% year-on-year to Rs 9.91 lakh crore. The share of RAM improved by 300 basis points to 62.7% of the lender’s total loan portfolio.

Deposits

Total deposits rose 9.1% to Rs 14.36 lakh crore in the quarter ended June 2025, from Rs 13.16 lakh crore a year ago. Within this, domestic deposits stood at Rs 12.04 lakh crore and international deposits at Rs 2.32 lakh crore.

The bank’s domestic CASA (current account savings account) ratio fell by 98 basis points (bps) in the June quarter to 39.33% from 40.31% a year ago.

The capital adequacy ratio rose to 17.61% from 16.82%.

Guidance

The bank has guided to a credit growth of 11-13% for the full-fiscal, led largely by the retail and MSME (micro, small and medium enterprises) segments. 

Despite a 4.2% rise in corporate loans to Rs 3.70 lakh crore for the first quarter ended June, the lender expects this segment to achieve about 10% growth for FY26.

The lender has a recovery target of Rs 10,000 crore in the full-fiscal, but ended up marginally lower in the first quarter ended June than the average Rs 2,500 crore it needs to clock every three months.