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Public sector lender Bank of Baroda (BoB) on Friday reported an 8 per cent year-on-year (y-o-y) fall in net profit for the quarter that ended September at ₹4,809 crore, on account of a higher base. However, the bottom line was 6 per cent higher on a sequential basis. BoB’s MD, CEO Debadatta Chand said the lender had recovered ₹900 crore from a written-off account in Q2FY25, which boosted its bottomline in that period. Chand said the bank made floating provisions of ₹400 crore in Q2FY26, in anticipation of a shift to the expected credit loss (ECL) model from the incurred loss model. With the addition, the bank’s overall floating provisions now stand at ₹1,000 crore. “As far as ECL is concerned, yes, that is the reason we created higher provisions in this quarter. We cannot say that each quarter we will make these provisions. We will only do it when we have a cushion,” Chand said. Core business The bank’s net interest income (NII) was up 3 per cent y-o-y to ₹11,954 crore in Q2, while other income was down 32 per cent on-year to ₹3,515 crore, largely on account of lower recoveries in comparison to Q2FY25 and lower treasury gains. Net interest margin (NIM), meanwhile, rose 5 bps sequentially to 2.96 per cent. Overall advances grew 12 per cent on-year to ₹12.78 lakh crore, and the bank aims to grow its advances by 11-13 per cent in the current fiscal, Chand said. Among segments, the lender aims to grow its corporate loan book by 10-11 per cent in the current fiscal, as against 3 per cent y-o-y growth seen in Q2, while retail loans are expected to rise by 18-20 per cent in FY26. Retail, MSME and agriculture loans formed 62 per cent of the bank’s loan book, while corporates loans accounted for the rest. Deposits, meanwhile, rose 9 per cent y-o-y to ₹15 lakh crore in Q2. The domestic current account and savings account ratio fell 1.1 per cent on-year to 38.42 per cent. Asset quality improved, with the slippage ratio standing at 0.91 per cent in Q2 versus 1.16 per cent in Q1, and credit cost falling to 29 basis points (bps) from 55 bps last quarter. The gross and net NPA ratio stood at 2.16 per cent and 0.57 per cent in Q2 versus 2.28 per cent and 0.60 per cent in the last quarter, respectively. Published on October 31, 2025
