Public sector Bank of Baroda (BoB) on Friday reported an 8 per cent year-on-year decline in net profit for the quarter ended September at ₹4,809 crore, due to a higher base. However, on a consecutive basis the result was 6 percent higher.
BoB CEO Debadatta Chand said the lender had recovered ₹900 crore from a written-off account in the second quarter of FY25, boosting operating profit in the period.
Chand said the bank has made variable provisions of ₹400 crore in Q2FY26, anticipating a shift to expected credit loss (ECL) model from incurred loss model. With the addition, the bank’s total current provisions now stand at ₹1,000 crore.
“As far as ECL is concerned, yes, that is the reason we have made higher provisions this quarter. We cannot say that we will make these provisions every quarter. We will do it only if we have enough cushion,” Chand said.
Core activity
The bank’s net interest income (NII) rose 3 percent year-on-year to ₹11,954 crore in the second quarter, while other income fell 32 percent year-on-year to ₹3,515 crore, largely due to lower recoveries compared to Q2FY25 and lower gains on government bonds. The net interest margin (NIM), meanwhile, rose by 5 basis points to 2.96 percent.
Total advances rose 12 per cent year-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. In terms of segments, the lender aims to grow its corporate loan book by 10-11 percent in the current fiscal, up from 3 percent YoY growth in the second quarter, while retail loans are expected to grow by 18-20 percent in FY26. Retail, SME and agricultural loans made up 62 percent of the bank’s loan portfolio, while corporate loans accounted for the rest.
Deposits, meanwhile, rose 9 percent year-on-year to ₹15 lakh crore in the second quarter. The domestic current account and savings account ratio fell by 1.1 percent year on year to 38.42 percent.
Asset quality improved, with the slippage ratio reaching 0.91 percent in the second quarter compared to 1.16 percent in the first quarter, and credit costs falling to 29 basis points (bps) from 55 basis points in the last quarter. The gross and net NPA ratio stood at 2.16 percent and 0.57 percent in the second quarter, compared to 2.28 percent and 0.60 percent respectively in the last quarter.
Published on October 31, 2025
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