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.

Bank of Baroda , one of India's leading public sector banks, has announced its financial results for the first quarter, revealing a mixed performance with modest profit growth and a slowdown in corporate lending.

Key Highlights

• Net profit increased by 1.90% year-over-year to ₹4,541.00 crore
• Operating profit rose by 15.00% to ₹8,236.00 crore
• Corporate lending declined by over 10.00% sequentially
• Retail lending grew by 17.50% year-on-year to ₹2.61 lakh crore
• MSME loans increased by 13.10% to ₹1.35 lakh crore
• Gross Non-Performing Assets (GNPA) ratio slightly increased to 2.28%

Financial Performance

Bank of Baroda reported a net profit of ₹4,541.00 crore for Q1, marking a 1.90% increase compared to ₹4,458.00 crore in the same quarter last year. The bank's operating profit showed a significant improvement, rising by 15.00% to ₹8,236.00 crore from ₹7,161.00 crore in the corresponding quarter of the previous year.

The bank's total business grew by 10.70% year-over-year, reaching ₹26,42,691.00 crore. Global advances increased by 12.60% to ₹12,07,056.00 crore, while global deposits rose by 9.10% to ₹14,35,634.00 crore.

Corporate Lending Slowdown

Bank of Baroda experienced a significant slowdown in corporate lending during the quarter. The corporate book stood at ₹3.70 lakh crore, up 4.00% year-on-year but down over 10.00% sequentially. The bank attributes this decline to companies accessing cheaper bond market rates and ongoing corporate deleveraging. Despite this setback, the bank maintains its expectation of 9-10% growth in corporate lending for the current financial year.

Retail and MSME Lending

In contrast to the corporate segment, retail lending remained strong with 17.50% year-on-year growth to ₹2.61 lakh crore. MSME loans also showed robust growth, increasing by 13.10% to ₹1.35 lakh crore. The bank expects MSME loan growth to reach 18-19% for the year.

Asset Quality

The Gross Non-Performing Assets (GNPA) ratio slightly increased to 2.28% as of the quarter-end, compared to 2.26% in the previous quarter. The Net Non-Performing Assets (NNPA) ratio rose to 0.60% from 0.58% quarter-over-quarter.

Provisions jumped 95.00% year-on-year to ₹1,967.00 crore, primarily due to a ₹500.00 crore international account being classified as NPA.

Income and Margins

The bank's net interest income (NII) saw a slight decline of 1.40% year-over-year, amounting to ₹11,435.00 crore. The net interest margin (NIM) declined to 2.91% from 2.98% in the prior quarter. The bank expects NIM pressure to persist until the September quarter but anticipates improvement thereafter, targeting a NIM range of 2.8-3% by the end of FY26.

Management Commentary and Outlook

Despite the challenges in corporate lending, Bank of Baroda maintains its overall credit growth guidance of 11-13% for the current financial year. The management remains optimistic about the bank's growth prospects, particularly in the retail and MSME segments.

Conclusion

Bank of Baroda's Q1 results present a mixed picture, with modest profit growth and strong retail and MSME lending offset by a slowdown in corporate lending and increased provisions. The bank's ability to maintain its overall growth targets while navigating challenges in the corporate segment will be crucial for its performance in the coming quarters. Investors and analysts will be closely watching the bank's efforts to manage asset quality, improve margins, and sustain its growth momentum across various lending segments.