Bank of Baroda Q1 results LIVE: PSU Bank to announce earnings today; all eyes on loan growth, NIMs, and asset quality

Bank of Baroda Q1 results Highlights : PSU lender Bank of Baroda announced its earnings for the quarter ended June 2026 (Q1FY27) post market hours on Friday, July 24.

Bank of Baroda reported a sharp decline in standalone net profit for the June quarter (Q1 FY27) as a one-time exceptional charge weighed on earnings, even though the public sector lender posted healthy growth in its core interest income. The bank also reported a sequential deterioration in asset quality, while provisions declined sharply from the previous quarter.

The lender's net profit fell 71.9% YoY to ₹ 1,278 crore from ₹ 4,541 crore in the corresponding quarter last year.

The fall in Q1 profit is due to a one-time expense of ₹ 5,680.23 crore incurred during the quarter, related to payments to NMC Group to settle a legal dispute. In July this year, Bank of Baroda agreed to pay $600 million in an out-of-court settlement to resolve years-long litigation linked to the collapse of United Arab Emirates (UAE)-based healthcare provider NMC Health.

Interest income rose 6.8% to ₹ 33,211 crore from ₹ 31,091 crore, while net interest income (NII) increased 9.5% to ₹ 12,526 crore, compared with ₹ 11,435 crore a year earlier. However, operating profit slipped 1.3% to ₹ 8,127 crore from ₹ 8,236 crore.

On the asset quality front, gross non-performing assets (GNPA) rose to 1.99% from 1.89% in the March quarter, while net non-performing assets (NNPA) increased to 0.50% from 0.45%, indicating a sequential deterioration in the bank's bad loan ratios.

At the same time, provisions declined sharply to ₹ 643 crore, down 79.6% QoQ from ₹ 3,150 crore, reflecting a much lower provisioning requirement than in the previous quarter.

The sharp fall in profit comes despite steady growth in the bank's lending income, with investors now likely to focus on management's commentary on margins, asset quality, credit growth and the impact of the exceptional charge on the lender's earnings trajectory.

Fundraising : Bank of Baroda has approved an enhancement in its overseas resource-raising limits, including doubling the borrowing limit through various loan facilities to USD 10 billion from USD 5 billion, as the public sector lender looks to strengthen funding for its international operations. The decision was approved by the bank's Board of Directors at its meeting held on July 24, 2026.

Interest income rose 6.8% YoY to ₹ 33,211 crore from ₹ 31,091 crore.

Net interest income (NII) increased 9.5% YoY to ₹ 12,526 crore, compared with ₹ 11,435 crore a year ago.

Net profit declined 71.9% YoY to ₹ 1,278 crore from ₹ 4,541 crore.

Operating profit slipped 1.3% YoY to ₹ 8,127 crore, against ₹ 8,236 crore in the year-ago period.

Provisions fell 79.6% QoQ to ₹ 643 crore from ₹ 3,150 crore in the March quarter.

Gross NPA (GNPA) stood at 1.99%, compared with 1.89% in the previous quarter, deteriorating by 10 basis points.

Net NPA (NNPA) increased to 0.50% from 0.45% in Q4 FY26, worsening by 5 basis points.

The board also approved an increase in Bank of Baroda's overseas borrowing limit through syndicated loans, bilateral loans, club deals and other similar arrangements. The limit has been enhanced to USD 10 billion from USD 5 billion, strengthening the bank's resource-raising capacity for its overseas operations. The proposal was approved by the board at its meeting on July 24, 2026 and disclosed under SEBI's Listing Regulations.

Bank of Baroda's board has approved retaining the size of its Medium Term Note (MTN) programme at USD 4 billion. At the same time, it approved a new sub-limit of USD 1 billion for issuing Green and ESG (Environmental, Social and Governance) Bonds for the bank's overseas operations, including its International Financial Services Centre Banking Unit (IFSCBU). The decision was taken at the board meeting held on July 24, 2026.

On the asset quality front, gross non-performing assets (GNPA) increased to 1.99% from 1.89% in the March quarter, deteriorating by 10 basis points sequentially.

Similarly, net non-performing assets (NNPA) rose to 0.50% from 0.45% in the previous quarter, indicating a 5-basis-point sequential deterioration.

Meanwhile, the bank's provisions declined sharply to ₹ 643 crore, down 79.6% from ₹ 3,150 crore reported in the preceding quarter, reflecting a significantly lower provisioning requirement compared with Q4 FY26.

Interest income increased 6.8% YoY to ₹ 33,211 crore from ₹ 31,091 crore, while net interest income (NII) rose 9.5% to ₹ 12,526 crore from ₹ 11,435 crore, reflecting steady growth in the bank's core lending business.

PSU lender Bank of Baroda announced its earnings for the quarter ended June 2026 (Q1FY27) post market hours on Friday, July 24. It posted a standalone net profit of ₹ 1278.39 crore, down 72% from ₹ 4541.36 in the same quarter last year.

The fall in Q1 profit is due to a one-time expense of ₹ 5,680.23 crore during the quarter.

Systematix Research expects Bank of Baroda's Q1 FY27 profit to be weighed down by a one-time exceptional charge of around ₹ 4,300 crore (net of tax) related to the UAE court settlement. The brokerage expects net interest income (NII) to rise 10.5% YoY to ₹ 12,632 crore, even as advances are likely to decline sequentially based on the bank's provisional business update.

It also forecasts operating profit to fall 10.9% QoQ to ₹ 8,083 crore, while provisions are expected to decline sharply by 77.8% QoQ to ₹ 700 crore. However, total operating expenses are likely to increase sequentially due to higher employee expenses.

The trend in provisions will also remain in focus after Q4 FY26 provisions surged 103% YoY to ₹ 3,150 crore, mainly due to one-off discretionary floating provisions. The Street will watch whether the absence of these discretionary charges results in a sharp year-on-year decline in quarterly provisioning.

Another key monitorable will be asset quality, with a focus on slippages in the corporate loan book. Bank of Baroda's Q4 FY26 slippage ratio was 0.72%, outperforming its guidance range of 1.00-1.25%. Investors will look for any stress emerging in the metals, infrastructure and power portfolios amid the RBI's caution over geopolitical risks and volatile energy prices.

Investors will closely watch Bank of Baroda's net interest margin (NIM) trajectory in Q1 FY27, particularly the balance between asset-side repricing and rising funding costs. The bank's Q4 FY26 NIM stood at 2.89%, at the lower end of its 2.85-3.00% guidance range. Market participants will assess whether the lagged MCLR repricing is sufficient to offset the increase in deposit costs following the decline in the CASA ratio to 38.89%.

The PSU stock ended 1.4% higher at ₹ 246.40 per share on BSE.

Despite strong year-on-year growth, Bank of Baroda's provisional business update showed a sequential moderation in business. Global business stood at ₹ 30.51 lakh crore as of June 30, 2026, compared with ₹ 30.78 lakh crore at the end of March 2026. Global deposits eased to ₹ 16.34 lakh crore from ₹ 16.48 lakh crore, while global advances declined to ₹ 14.17 lakh crore from ₹ 14.30 lakh crore over the same period.

Ahead of its Q1 FY27 results, Bank of Baroda reported that its global business grew 15.46% YoY to ₹ 30.51 lakh crore as of June 30, 2026. Global advances increased 17.42% to ₹ 14.17 lakh crore, while global deposits rose 13.81% to ₹ 16.34 lakh crore. Domestic deposits grew 14.74% to ₹ 13.82 lakh crore, domestic advances climbed 16.14% to ₹ 11.51 lakh crore, and domestic retail advances (excluding pool purchase) rose 18.45% to ₹ 3.10 lakh crore.

The stock opened at ₹ 242.30, initially fell 1.5% to its day's low of ₹ 239.30. However, it later jumped around 3% from intra-day low to its day's high of ₹ 246.15 per share on BSE.

Axis Direct expects Bank of Baroda's Q1 FY27 NII to increase 1.9% QoQ and 11.3% YoY to ₹ 12,732 crore, while net profit is seen at ₹ 5,115 crore, down 8.9% QoQ but up 12.6% YoY. The brokerage expects pre-provision operating profit to decline 5% QoQ due to lower treasury gains. However, provisions are likely to fall 43.7% QoQ to ₹ 1,773 crore, supporting profitability. It also expects healthy loan growth, slower deposit growth, and the loan-to-deposit ratio (LDR) to remain within the management's guidance.

Systematix Research expects Bank of Baroda's net interest income (NII) to rise 10.5% YoY to ₹ 12,632 crore. The brokerage expects advances to decline sequentially, operating profit to fall 10.9% QoQ to ₹ 8,083 crore, while provisions are likely to decline 77.8% QoQ to ₹ 700 crore. However, higher employee expenses are expected to push up total operating expenses sequentially.

Systematix Research expects Bank of Baroda's Q1 FY27 profit to be impacted by a one-time exceptional charge of around ₹ 4,300 crore (net of tax) related to the UAE court settlement, despite healthy year-on-year growth in net interest income.

Apart from the headline numbers, investors will assess Bank of Baroda's June quarter performance for indications of sustained profit growth, trends in asset quality, loan and deposit growth, and the management's outlook on credit demand and net interest margins.

The key metrics to watch include Net Interest Margin (NIM), loan growth, deposit growth, gross and net non-performing assets (GNPA and NNPA), credit cost, slippages, provisioning, and the bank's management guidance.

Bank of Baroda's stock has witnessed sustained weakness across multiple timeframes. Over the past five trading sessions, the shares have slipped 1.69%. The decline has been steeper over longer periods, with the stock falling 14.70% in the past month and 20.12% over the last six months.

On a year-to-date (YTD) basis, the PSU bank's shares have lost 17.44%, although they continue to remain 2.22% higher compared with the same period a year ago.