Bank of Baroda (BoB) reported its highest-ever quarterly net profit of ₹6,532 crore for the second quarter of FY27, registering a 35.8% increase from ₹4,809 crore in the corresponding quarter last year. The public sector lender’s performance was supported by higher non-interest income, particularly treasury gains from the sale of part of its National Stock Exchange (NSE) shareholding during the exchange’s initial public offering (IPO).
The bank also recorded growth in interest income, advances and deposits, while asset quality improved during the September quarter. Net interest income increased 9% to ₹13,026 crore, and global advances grew 18.3% year-on-year. However, the record profit was supported significantly by treasury income, meaning investors will need to distinguish between recurring banking income and gains from investment-related transactions.
Key Takeaways
- Record quarterly profit: ₹6,532 crore, up 35.8% year-on-year.
- Net interest income: ₹13,026 crore, up 9%.
- Non-interest income: ₹6,881 crore, up 95.8%.
- Treasury income: ₹4,093 crore, compared with ₹1,086 crore a year earlier.
- Operating profit: ₹11,430 crore, up 50.9%.
- Global advances: ₹15.12 lakh crore, up 18.3%.
- Global deposits: ₹17.45 lakh crore, up 16.4%.
- Gross NPA ratio: Improved to 1.78% from 2.16% a year earlier.
- Net NPA ratio: Declined to 0.37%.
Bank of Baroda’s Q2 FY27 Profit Reaches Record ₹6,532 Crore
Bank of Baroda’s standalone net profit increased to ₹6,532 crore in Q2 FY27 from ₹4,809 crore in Q2 FY26.
The result represents the bank’s highest-ever quarterly net profit.
The improvement was supported by growth in both interest and non-interest income. However, the sharp increase in treasury income was a particularly important contributor to the quarter’s performance.
Bank of Baroda Q2 FY27 financial performance
| Financial metric | Q2 FY27 | Q2 FY26 | YoY growth |
|---|---|---|---|
| Net profit | ₹6,532 crore | ₹4,809 crore | 35.8% |
| Net interest income | ₹13,026 crore | ₹11,954 crore | 9% |
| Non-interest income | ₹6,881 crore | ₹3,515 crore | 95.8% |
| Operating profit | ₹11,430 crore | ₹7,576 crore | 50.9% |
| Treasury income | ₹4,093 crore | ₹1,086 crore | — |
Figures are standalone unless otherwise specified.
The results show that Bank of Baroda generated higher earnings from its regular banking operations while also benefiting from a substantial increase in non-interest income.
NSE Share Sale Drives Treasury Income Higher
One of the biggest contributors to the profit increase was treasury income.
Bank of Baroda recorded treasury income of ₹4,093 crore during Q2 FY27, compared with ₹1,086 crore in the corresponding quarter last year and ₹893 crore in Q1 FY27.
The increase was largely supported by the sale of a portion of the bank’s National Stock Exchange shareholding during NSE’s IPO.
Treasury income generally includes gains or losses from investment and trading activities, including transactions involving securities.
For banks, this income can vary significantly from one quarter to another depending on market conditions, investment valuations and the timing of asset sales.
The NSE-related gains helped lift Bank of Baroda’s non-interest income to ₹6,881 crore, an increase of 95.8% year-on-year.
This distinction matters because treasury gains may not recur at the same level in future quarters. Investors therefore need to examine the bank’s net interest income and operating performance alongside its reported net profit.
Net Interest Income Grows 9% to ₹13,026 Crore
Net interest income (NII) represents the difference between the interest a bank earns on loans and investments and the interest it pays on deposits and borrowings.
Bank of Baroda’s NII increased 9% year-on-year to ₹13,026 crore from ₹11,954 crore.
The growth indicates that the bank continued expanding its core lending and deposit operations.
However, its global net interest margin (NIM) stood at 2.74% during Q2 FY27, down three basis points compared with the previous quarter.
NIM measures how efficiently a bank earns income from its interest-bearing assets.
A decline in NIM can indicate pressure from funding costs, lending rates or changes in the composition of loans and investments.
For Bank of Baroda, the sequential decline suggests that stronger overall earnings did not translate into an improvement in lending margins during the quarter.
Operating Profit Rises 50.9%
Bank of Baroda’s operating profit increased 50.9% year-on-year to ₹11,430 crore in Q2 FY27, compared with ₹7,576 crore in Q2 FY26.
Operating profit reflects income from banking activities before provisions and taxes.
The increase was supported by higher net interest income and the sharp rise in non-interest income.
For the first half of FY27, the bank reported operating profit of ₹19,557 crore, up 23.7% from the corresponding period last year.
The operating performance provides another measure of the bank’s earnings strength, although the contribution from treasury income should be considered when assessing how sustainable the growth may be.
Asset Quality Improves as Gross NPA Falls to 1.78%
Bank of Baroda also reported an improvement in asset quality during Q2 FY27.
Gross non-performing assets (GNPA) declined to 1.78% of gross advances, compared with 2.16% in Q2 FY26.
The net NPA ratio improved to 0.37%, down 20 basis points year-on-year.
A non-performing asset is a loan on which the borrower has stopped making scheduled repayments for the period specified under banking regulations.
Lower NPA ratios generally indicate that a smaller proportion of a bank’s loan portfolio is classified as stressed.
Bank of Baroda asset quality indicators
| Indicator | Q2 FY27 | Year-on-year change |
|---|---|---|
| Gross NPA ratio | 1.78% | Improved from 2.16% |
| Net NPA ratio | 0.37% | Improved by 20 bps |
| Slippage ratio | 0.69% | Improved by 22 bps |
| Credit cost | 0.55% | — |
| Provision coverage ratio, including technical write-offs | 94.65% | Improved by 144 bps |
The slippage ratio declined to 0.69%, while the provision coverage ratio, including technical write-offs, increased to 94.65%.
The provision coverage ratio measures the extent to which a bank has set aside provisions against its stressed loans.
The improvement in these indicators suggests that the bank entered the September quarter with a stronger asset-quality position than a year earlier.
Global Advances Increase 18.3% to ₹15.12 Lakh Crore
Bank of Baroda’s global advances increased 18.3% year-on-year to ₹15,12,448 crore as of September 2026.
Domestic advances grew 13.5% to ₹11,87,944 crore, while international advances increased 39.7% to ₹3,24,504 crore.
The faster growth in international advances contributed to the overall expansion of the bank’s loan book.
Bank of Baroda advances
| Segment | September 2026 | YoY growth |
|---|---|---|
| Global advances | ₹15,12,448 crore | 18.3% |
| Domestic advances | ₹11,87,944 crore | 13.5% |
| International advances | ₹3,24,504 crore | 39.7% |
The bank also recorded strong growth in several domestic lending segments.
- Organic retail advances increased 18.6%.
- Auto loans grew 27.8%.
- Mortgage loans increased 20.3%.
- Home loans rose 14.6%.
- Education loans grew 9.9%.
- Agriculture advances increased 19% to ₹2,01,946 crore.
- Organic MSME advances grew 21.3% to ₹1,75,207 crore.
- Corporate advances increased 6.3% to ₹4,25,736 crore.
The figures show that retail, agriculture and small-business lending were important contributors to domestic credit expansion.
Global Deposits Grow 16.4%
Bank of Baroda’s global deposits increased 16.4% year-on-year to ₹17,45,435 crore as of September 30, 2026.
Domestic deposits grew 16.6% to ₹14,83,521 crore, while international deposits increased 14.9% to ₹2,61,915 crore.
Domestic CASA deposits rose 10.4% to ₹5,39,515 crore.
CASA refers to current account and savings account deposits. These deposits are important for banks because they generally provide a relatively lower-cost source of funding compared with certain term deposits.
The growth in deposits supports the bank’s ability to fund its expanding loan book.
However, investors will continue to monitor deposit costs and the mix between low-cost CASA deposits and higher-interest term deposits because these factors influence net interest margins.
Return Ratios and Capital Position
Bank of Baroda reported improvements in key profitability ratios during the quarter.
Return on Assets (ROA) increased by 19 basis points year-on-year to 1.26%.
Return on Equity (ROE) improved by 363 basis points to 19.28%.
The bank’s standalone capital adequacy ratio stood at 16.61% as of September 2026. Its Tier-I capital ratio was 14.70%, including a Common Equity Tier-I ratio of 14.20%.
Capital adequacy measures a bank’s capital relative to its risk-weighted assets. It is an important indicator of the bank’s ability to absorb potential losses and support future lending.
The consolidated capital adequacy ratio stood at 17.01%.
First-Half FY27 Profit Reaches ₹7,810 Crore
For the six months ended September 30, 2026, Bank of Baroda reported standalone net profit of ₹7,810 crore.
Net interest income for the first half increased 9.2% year-on-year to ₹25,551 crore, while non-interest income rose 26.4% to ₹10,351 crore.
Operating profit reached ₹19,557 crore, up 23.7% from the corresponding period last year.
The first-half figures provide a broader view of the bank’s performance beyond the record September quarter.
They also highlight the importance of separating recurring interest income from treasury-related gains when assessing the sustainability of earnings growth.
The Bigger Picture
Bank of Baroda’s record quarterly profit reflects growth across its banking business, stronger non-interest income and an improvement in asset quality. The 18.3% expansion in global advances and 16.4% growth in global deposits indicate that the lender is increasing its business scale. Lower gross and net NPA ratios also suggest an improvement in the quality of its loan portfolio.
However, the nearly 96% increase in non-interest income was heavily supported by treasury gains associated with the NSE share sale. This means the record profit should not automatically be treated as a recurring earnings level. The bank’s future performance will depend on sustainable growth in net interest income, deposit costs, lending margins, credit quality and the extent to which non-interest income can be maintained.
Looking Ahead
Investors will monitor whether Bank of Baroda can maintain loan and deposit growth while protecting its net interest margin. The bank’s retail, agriculture and MSME portfolios will be important indicators of domestic lending momentum. Asset-quality trends, fresh loan slippages and credit costs will also help determine whether the improvement in the bank’s balance sheet can continue.
The next few quarters will also show how the bank performs without an unusually large contribution from the NSE-related treasury transaction. Consistent growth in core banking income, supported by stable margins and controlled credit costs, will be important in evaluating the durability of its record Q2 earnings.
Frequently Asked Questions
1. What was Bank of Baroda’s Q2 FY27 net profit?
Bank of Baroda reported a standalone net profit of ₹6,532 crore in Q2 FY27, an increase of 35.8% from ₹4,809 crore in Q2 FY26.
2. Why did Bank of Baroda’s profit increase sharply?
The increase was supported by 9% growth in net interest income and a 95.8% rise in non-interest income. Treasury income increased significantly, partly due to the sale of a portion of the bank’s NSE shareholding during the exchange’s IPO.
3. What was Bank of Baroda’s net interest income in Q2 FY27?
The bank reported net interest income of ₹13,026 crore, up 9% year-on-year.
4. What was Bank of Baroda’s gross NPA ratio in Q2 FY27?
Its gross NPA ratio declined to 1.78% from 2.16% in Q2 FY26. The net NPA ratio improved to 0.37%.
5. How much did Bank of Baroda’s global advances grow?
Global advances increased 18.3% year-on-year to ₹15.12 lakh crore as of September 2026.
6. What was Bank of Baroda’s global deposit growth?
Global deposits increased 16.4% year-on-year to ₹17.45 lakh crore as of September 30, 2026.
7. Was the record Q2 profit entirely generated from regular banking operations?
No. While net interest income increased 9%, the bank also recorded a substantial rise in non-interest income, including treasury gains associated with its NSE shareholding sale. These gains may not recur at the same level in future quarters.
Get the day’s top stories in your inbox
One concise email. No spam, unsubscribe anytime.
