Bank of Baroda net profit rises 1.9% to Rs 4541 crore

Mumbai: Bank of Baroda reported a muted 1.9% rise in net profit for the June quarter, as dip in net interest income, higher provisions offset gains from strong growth in deposits and advances.

Net profit stood at Rs 4,541.4 crore in Q1 FY26, up from Rs 4,458.2 crore a year earlier.The bank managed to report a profit despite only a marginal decrease in net interest income and near doubling of provisions because of a 88% year-on-year jump in other income to Rs 4674 crore in Q1 FY26, compared to Rs 2487 crore in Q1 FY25. The increase was driven by treasury income as bond yields fell.The bank’s global deposits rose 9.1% year-on-year to Rs 14,35,634 crore, while advances grew 13.2% to Rs 11,86,585 crore.

Net interest income fell 1.4% to Rs 11,434.8 crore, as the rise in interest expended outpaced the growth in interest earned. Interest earned grew 4.9% to Rs 31,091.5 crore, but interest expended rose 9% to Rs 19,656.7 crore, compressing margins. Operating expenses rose 13.7% to Rs 7,872.8 crore, adding pressure on the bottom line.

He added that the bank has generated net profit of over Rs 4000 crore for the past 10 quarters.

Announcing the results, the bank’s MD & CEO, Debadatta Chand said “Our net interest margin declined by only 7 basis points as against an average of 17 basis points for other banks” He added that margins were expected to be under pressure for the next quarter as well as deposit costs will take some time to catch up with the fall in lending rates. He said that corporates continued to reduce their loans as they got cheaper funds from bond markets and other sources and most the loan growth was from agriculture retail and MSME.

“We are targeting a 11-13% growth in advances and 9-11% increase in deposits for the year,” Chand said.Provisions and contingencies, excluding tax, nearly doubled to Rs 1,966.9 crore from Rs 1,010.7 crore in the year-ago quarter. Despite the higher provisioning, the bank improved its asset quality, with gross NPAs declining 10.7% to Rs 27,571.7 crore.The results reflect continued balance sheet expansion, but with tighter interest margins and rising costs weighing on earnings.