Bank of Baroda Q2FY26 Results: State-owned Bank of Baroda announced its financial results for the September quarter on October 31, post market hours, reporting an 8.2% year-on-year decline in net profit to ₹4,809 crore, compared with ₹5,238 crore in the same period last year, despite a sharp improvement in provisions.
The decline was primarily driven by a steep 32% drop in non-interest income, which fell to ₹3,515 crore from ₹5,166 crore a year ago. A sharp 36% year-on-year fall in treasury income to ₹1,086 crore weighed on the bank’s profitability.
Meanwhile, net interest income (NII) registered a modest increase of 2.7% YoY to ₹11,954 crore, up from ₹11,637 crore in Q2FY25, while the net interest margin remains stable on a QoQ basis at 3.10% but fell marginally by 17 basis points to 3.27%.
On the asset quality front, the bank reported an improvement, with the gross non-performing asset (GNPA) ratio easing to 2.16% from 2.50%, and the net NPA ratio improving slightly to 0.57% from 0.60%. The capital adequacy ratio strengthened to 16.54%, up 28 basis points year-over-year.
Additionally, provisions declined sharply by 47.2% YoY to ₹1,232 crore, providing some support to the bottom line. The operating profit before provisions came in at ₹7,576 crore, a 20.1% YoY drop over ₹9,477 crore in the September 2024 quarter.
