Bank of Baroda , one of India's leading public sector banks, has announced its financial results for the first quarter, showcasing resilience in a challenging economic environment.

Key Financial Highlights

• Net Profit: The bank reported a net profit of ₹4,541.00 crore, marking a modest 1.9% increase from ₹4,458.00 crore in the same quarter last year.
• Operating Profit: Operating profit saw a significant rise of 15%, reaching ₹8,236.00 crore compared to ₹7,161.00 crore in the previous year.
• Net Interest Income (NII): NII experienced a slight decline of 1.4%, settling at ₹11,435.00 crore.
• Non-Interest Income: This segment showed remarkable growth, surging by 88% to ₹4,675.00 crore, primarily driven by strong treasury gains.

Asset Quality and Provisions

Bank of Baroda continued to improve its asset quality metrics:

• Gross Non-Performing Asset (GNPA) Ratio: Decreased to 2.28% from 2.88% in the previous year.
• Net Non-Performing Asset (NNPA) Ratio: Improved to 0.60% from 0.69% year-on-year.
• Provision Coverage Ratio: Stood strong at 93.18%, ensuring robust coverage against potential risks.

Business Growth

The bank demonstrated solid growth across various business segments:

• Global Advances: Increased by 12.6% year-on-year to ₹12,07,056.00 crore.
• Global Deposits: Rose by 9.1% to ₹14,35,634.00 crore.
• Domestic CASA Ratio: Stood at 39.33%, reflecting a strong low-cost deposit base.

Sectoral Performance

Bank of Baroda showed strong growth in key lending segments:

• Retail Loans: Grew by 17.5% year-on-year.
• Agriculture Loans: Increased by 16.2%.
• MSME Loans: Rose by 13.1%.

Digital Initiatives and Customer Experience

The bank continued to make strides in its digital transformation:

• bob World Users: Increased to 333 lakh, a 7% growth from the previous year.
• Digital Transactions: Constituted 95% of total transactions, highlighting the bank's strong digital presence.
• UPI Transactions: The bank maintained its 3rd rank in UPI remittances.

Capital Adequacy and Liquidity

Bank of Baroda maintained a strong capital position:

• Capital Adequacy Ratio: Improved to 17.61% from 16.82% in the previous year.
• CET-1 Ratio: Stood at 12.38%, ensuring a robust capital buffer.

Management Commentary

Sanjiv Chadha, MD & CEO of Bank of Baroda, commented on the results: "Our Q1 performance demonstrates the bank's resilience and adaptability in a dynamic economic environment. The significant growth in operating profit and improvement in asset quality reflect our strategic focus on sustainable growth and risk management. We remain committed to enhancing shareholder value while supporting India's economic growth through our diverse product offerings and digital initiatives."

Outlook

Bank of Baroda's Q1 results reflect its ability to navigate challenges while maintaining growth momentum. The bank's focus on digital transformation, improved asset quality, and strong capital position positions it well for future growth. As the Indian economy continues to recover, Bank of Baroda is well-placed to capitalize on emerging opportunities in retail, agriculture, and MSME sectors.

The bank's strategic initiatives in sustainability and digital banking are likely to drive long-term value creation for stakeholders. Investors and analysts will be watching closely to see how Bank of Baroda builds on this performance in the coming quarters, especially in light of evolving economic conditions and regulatory landscapes.

Bank of Baroda , one of India's leading public sector banks, has announced an ambitious target of 9-10% growth in corporate loans for the fiscal year, signaling a strong focus on expanding its corporate lending portfolio. This strategic move comes as the bank reports a robust performance in the first quarter of the financial year 2025-26.

Corporate Loan Growth Strategy

Bank of Baroda's executive has set a clear goal to achieve 9-10% growth in corporate loans for the year. This target underscores the bank's commitment to strengthening its position in the corporate lending sector and capitalizing on the growing demand for credit in the Indian market.

Q1 FY2025-26 Financial Highlights

The bank's financial results for the quarter ended June 30, 2025, reveal a solid performance across key metrics:

Profit and Income

• Net Profit: The bank reported a net profit of ₹4,541.00 crore for Q1 FY26, showing a modest year-on-year growth of 1.9% from ₹4,458.00 crore in Q1 FY25.
• Operating Profit: Operating profit saw a significant increase of 15.0%, reaching ₹8,236.00 crore compared to ₹7,161.00 crore in the same quarter last year.
• Non-Interest Income: There was a substantial rise in non-interest income, which grew by 88.0% year-on-year to ₹4,675.00 crore.

Asset Quality

• Gross NPA Ratio: The bank's asset quality improved, with the Gross Non-Performing Asset (GNPA) ratio decreasing to 2.28% from 2.88% in the previous year.
• Net NPA Ratio: The Net NPA ratio also showed improvement, declining to 0.60% from 0.69% year-on-year.

Business Growth

• Global Advances: The bank's global advances grew by 12.6% year-on-year, reaching ₹12,07,056.00 crore.
• Domestic Gross Advances: Domestic gross advances increased by 12.4% to ₹9,91,363.00 crore.
• Global Deposits: Total global deposits rose by 9.1% to ₹14,35,634.00 crore.

Key Ratios

• Net Interest Margin (NIM): The global NIM stood at 2.91% for Q1 FY26.
• Capital Adequacy: The bank maintained a strong capital position with a Capital Adequacy Ratio of 17.61% on a standalone basis.

Sector-wise Performance

The bank's focus on corporate lending is evident in its sector-wise performance:

The corporate sector, while showing modest growth, presents significant potential for expansion, aligning with the bank's new growth target.

Digital Banking Initiatives

Bank of Baroda continues to make strides in digital banking:

• The bank's digital platform 'bob World' saw its user base grow to 333 lakh, a 7% increase from the previous year.
• Digital transactions accounted for 95% of total transactions, highlighting the bank's successful digital transformation efforts.

Conclusion

Bank of Baroda's ambitious corporate loan growth target of 9-10% comes at a time when the bank is demonstrating strong financial performance and improved asset quality. With its robust Q1 results and strategic focus on corporate lending, the bank appears well-positioned to capitalize on growth opportunities in the corporate sector while maintaining its strong presence in retail and MSME segments.

As the bank moves forward with its growth strategy, it will be interesting to observe how this targeted expansion in corporate loans influences its overall performance and market position in the coming quarters.