Archive · 31 Oct 2025
Bank of Baroda Q2 FY26 Profit Dips Amid Asset Quality Gains
Bank of Baroda recently shared its financial results for the second quarter of the fiscal year 2026.
Although the bank's profit went down by about 8% compared to the same time last year, this was mainly because its operating profit decreased.
However, the bank did better in managing its loans, as fewer loans became 'bad loans' (non-performing assets).
Both the overall bad loans and the net bad loans decreased.
The bank's income from lending, called net interest income, actually went up slightly.
Its total loans also grew, with a particular increase in loans given to individuals and small businesses.
This shows the bank is improving its loan quality even as profits took a hit.
Bank of Baroda's Q2 FY26 consolidated net profit decreased by 8.2% year-on-year to Rs 4,809 crore.
Net interest income (NII) grew by 2.7% YoY to Rs 11,954 crore, while operating profit fell 20.1% YoY.
The bank reported improvements in asset quality, with the gross NPA ratio falling to 2.16% and the net NPA ratio easing to 0.57%.
Global advances increased by 11.9% YoY, driven by strong growth in organic retail advances (17.6% YoY).
The share of Retail, Agriculture, and MSME (RAM) loans in total advances increased to 61.7%.
- Who
- Bank of Baroda (BoB)
- What
- Reported an 8.2% year-on-year decline in consolidated net profit for the second quarter of FY26, while simultaneously showing improvements in asset quality.
- When
- Second quarter of fiscal year 2026 (July-September)
- Where
- India (BSE mentioned)
- Why
- Net profit declined due to a drop in operating profit, despite growth in net interest income. Asset quality improved with lower gross and net NPA ratios.
Financial Performance
Asset Quality
Profit vs. Loan Quality
Financial Performance
The bank experienced an 8.2% year-on-year decrease in consolidated net profit for Q2 FY26, and a 20.1% drop in operating profit.
Asset Quality
Simultaneously, the bank's asset quality improved, with a decline in both the gross NPA ratio to 2.16% and the net NPA ratio to 0.57%.
- Q2 FY26 Consolidated Net Profit
- Rs 4,809 crore (down 8.2% YoY)
- Q2 FY26 Net Interest Income (NII)
- Rs 11,954 crore (up 2.7% YoY)
- Q2 FY26 Operating Profit
- Rs 7,576 crore (down 20.1% YoY)
- Q2 FY26 Gross NPA Ratio
- 2.16% (down from 2.50% YoY, down from 2.28% QoQ)
- Q2 FY26 Net NPA Ratio
- 0.57% (down from 0.60% YoY, down from 0.60% QoQ)
- Q2 FY26 Global Advances Growth
- 11.9% YoY
- Q2 FY26 Organic Retail Advances Growth
- 17.6% YoY
- Q2 FY26 RAM Loans Share
- 61.7% of total advances (up 310 bps YoY)
Sources
Bandhan Bank Q2 profit falls sharply to Rs 112 crore on high slippages, low margins
Bandhan Bank Q2, weakest among peers, triggers target price cuts
Bandhan Bank shares plunge 6% post weak Q2; brokerages cut earnings estimates
Bandhan Bank shares plunge 7% as analysts slash targets on asset quality woes
Bank of Baroda Q2 results: Profit declines 8% to Rs 4,809 crore; asset quality improves
