Bank of Baroda has announced a dividend of Rs. 8.50 per equity share for the financial year ended March 31, 2026. The dividend was recommended by the Board of Directors in their meeting held on May 8, 2026. This payout is subject to the approval of shareholders at the Annual General Meeting scheduled for June 23, 2026.

Shareholder Action Required

The dividend will be paid to shareholders whose names appear in the Register of Members or depository records as of the close of business hours on June 5, 2026. Eligible shareholders will receive the payment electronically within 30 days of the AGM, provided their bank details are updated.

Tax on Dividend

Pursuant to the Finance Act 2026, dividends paid on or after April 1, 2026, are taxable in the hands of shareholders. Consequently, the Bank will deduct Tax Deducted at Source (TDS) at applicable rates. Shareholders are advised that this dividend pertains to FY 2026-27 for tax purposes.

Non-compliant shareholders without a valid Permanent Account Number (PAN) will face TDS deduction at a rate of 20%. To ensure appropriate TDS deduction, shareholders must submit valid documents, including PAN and residential status for FY 2026-27, via the Registrar & Share Transfer Agent's website by 5.00 PM IST on May 30, 2026.

Financial Performance Update

For the fourth quarter of FY 2026, the bank reported a net profit of Rs. 5,616 crores, a growth of 11.2% YoY. Global business volume crossed Rs. 30.78 lakh crores, registering a YoY growth of 13.9%. The bank's asset quality improved, with the Gross NPA ratio at 1.89% and Net NPA ratio at 0.45%.

Bank of Baroda has announced plans to increase its size twofold within five years, signaling a significant long-term growth ambition for one of India's prominent public sector lenders. The announcement underscores the bank's strategic focus on scaling up its overall operations and expanding its footprint in the Indian financial landscape.

Growth Ambition

The bank's plan to double its size over a five-year horizon represents a substantial commitment to expansion. While specific financial targets or operational metrics underpinning this objective have not been detailed in the available information, the announcement points to a broad-based intent to grow across the bank's business segments.

Strategic Significance

Bank of Baroda's stated ambition to double in size within five years positions it among public sector banks with clearly articulated medium-term growth goals. The plan reflects the bank's confidence in its ability to expand its balance sheet, customer base, and overall business scale over the stated period. Further details on the specific strategies, capital plans, or segment-wise targets that will drive this growth are yet to be disclosed.