Bank of Baroda Q3 FY2026 Results
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Overview
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Detailed Analysis
Sentiment
Positive
Executive Summary
Bank of Baroda Q3 FY26: Operating Income ₹15,400 Cr (vs ₹15,186 Cr YoY), PAT ₹5,055 Cr (vs ₹4,837 Cr YoY)
In Q3 FY26 Bank of Baroda reported consolidated Operating Income of ₹15,400 Cr and consolidated Net Profit of ₹5,055 Cr, up versus Q3 FY25 levels. Net Interest Income was stable at ₹11,800 Cr while Non‑Interest Income rose to ₹3,600 Cr, supporting operating profit of ₹7,377 Cr. Asset quality improved with Gross NPA at 2.04% and provision coverage (with TWO) at 92.73%, while CRAR remained comfortable at 15.75% (consolidated). The quarter included an amortisation charge related to revised family pension (₹72.72 Cr charged in the quarter) and management reiterated focus on sustaining >1% ROA and...Net Profit (Consolidated)
₹5,055 Crvs ₹4,837 Cr in Q3 FY25
Operating Income (Consolidated)
₹15,400 Crvs ₹15,186 Cr in Q3 FY25
Net Interest Income (Consolidated)
₹11,800 Crvs ₹11,786 Cr in Q3 FY25
Non‑Interest Income (Consolidated)
₹3,600 Crvs ₹3,400 Cr in Q3 FY25
Operating Profit (Consolidated)
₹7,377 Crvs ₹7,664 Cr in Q3 FY25
Gross NPA (Consolidated)
2.04%vs 2.43% in Q3 FY25
CRAR (Consolidated)
15.75%vs 15.75% in Q3 FY25
Global NIM (Consolidated)
2.79%vs 3.04% in Q3 FY25
Key Highlights
10
Consolidated Net Profit rose to ₹5,055 Cr in Q3 FY26, an increase versus ₹4,837 Cr in Q3 FY25 driven by stable NII and higher non‑interest income
Global Net Interest Margin compressed to 2.79% in Q3 FY26 from 3.04% in Q3 FY25, reflecting margin pressure despite stable Net Interest Income of ₹11,800 Cr
Operating Profit (before provisions) was ₹7,377 Cr in Q3 FY26, slightly below ₹7,664 Cr a year ago, impacted by higher operating expenses of ₹8,024 Cr
Asset quality improved
Provision Coverage Ratio (including TWO) stood at 92.73% as on 31 Dec 2025, giving cushion against credit shocks
Non‑Interest Income increased to ₹3,600 Cr in Q3 FY26 from ₹3,400 Cr in Q3 FY25, supporting Operating Income despite NIM compression
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Key Highlights
10
Consolidated Net Profit rose to ₹5,055 Cr in Q3 FY26, an increase versus ₹4,837 Cr in Q3 FY25 driven by stable NII and higher non‑interest income
Global Net Interest Margin compressed to 2.79% in Q3 FY26 from 3.04% in Q3 FY25, reflecting margin pressure despite stable Net Interest Income of ₹11,800 Cr
Operating Profit (before provisions) was ₹7,377 Cr in Q3 FY26, slightly below ₹7,664 Cr a year ago, impacted by higher operating expenses of ₹8,024 Cr
Asset quality improved
Provision Coverage Ratio (including TWO) stood at 92.73% as on 31 Dec 2025, giving cushion against credit shocks
Non‑Interest Income increased to ₹3,600 Cr in Q3 FY26 from ₹3,400 Cr in Q3 FY25, supporting Operating Income despite NIM compression
Credit cost remained low at 0.17% in Q3 FY26 (slippage ratio 0.86% in Q3 FY26), supporting profitability and balance‑sheet stability
Bank recorded an amortisation charge related to family pension revision
Domestic advances grew (reported in press materials) with organic retail advances up 17.4% YoY, supporting retail mix gains and RAM share at 61.8%
Liquidity metrics
Guidance & Outlook
4
Management indicated continued focus on sustaining ROA above 1% and improving return on equity via business growth and controlled credit cost
Bank emphasised continued organic retail and RAM (Retail, Agri, MSME) growth to improve loan mix; retail advances grew 17.4% YoY in Q3 FY26
Liquidity stance to remain conservative with consolidated LCR ~116% and floating provisions in place (Group floating provision ₹106,281 lakhs reported)
No explicit capital raise planned; CRAR (consolidated) at 15.75% provides headroom for growth plans in the near term
Risks & Concerns
5
Margin pressure
Global NIM contracted to 2.79% in Q3 FY26 from 3.04% in Q3 FY25 which could compress future profitability if deposit costs rise
Amortisation of additional family pension liability aggregate ₹145,441 lakhs (₹1,454.41 Cr) remains a recurring charge (balance unamortised ₹7,273 lakhs as on 31 Dec 2025) and could dent future profits if accelerated
Operating expense growth (Q3 FY26 operating expenses ₹8,024 Cr) and elevated Opex could limit operating leverage if revenue growth slows
Slowdown risk in wholesale/corporate segment could increase slippages; while GNPA improved to 2.04% there remains concentration risk in project finance exposures (projects under implementation outstanding ₹20,084.14 lakh as per disclosures)
Regulatory and consolidation-related items (amalgamation of RRBs, liquidation of joint venture India International Bank Malaysia) created one‑offs and reserve movements that may affect comparability of future quarters
AI-generated analysis. May contain inaccuracies — verify against original sources.