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.

Bank of Baroda , one of India's leading public sector banks, has announced a significant development in its governance structure with the appointment of a new Government Nominee Director.

New Government Nominee Director

The bank has appointed Shri Ashish Madhaorao More as the Government of India Nominee Director on its Board, effective July 24, 2025. This appointment, made through a Central Government notification under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, sees Shri More replacing Shri M P Tangirala.

Background and Experience

Shri More brings a wealth of experience to the role. He is currently serving as a Joint Secretary in the Ministry of Finance, Department of Financial Services. A senior IAS officer from the AGMUT cadre with an allotment year of 2005, Shri More holds a Bachelor of Arts degree from Nagpur University.

His extensive administrative experience spans roles across Central Government, Union Territories, and States. Notable positions in his career include:

• Deputy Commissioner in Andaman & Nicobar Islands, Delhi, and Mizoram
• Director (Finance) in Delhi Jal Board
• Secretary in multiple departments in Goa and Puducherry
• Private Secretary to the Minister of Railways
• Director (All India Services Division) in the Department of Personnel and Training

Impact on Bank of Baroda

This diverse background in public service, policy implementation, financial administration, and governance across various domains is expected to bring valuable insights to Bank of Baroda's board.

The appointment of Shri Ashish Madhaorao More as the Government Nominee Director underscores the bank's commitment to strong governance and aligning with regulatory requirements. His extensive experience in public administration and finance is likely to contribute significantly to the bank's strategic direction and oversight.