Bank of Baroda logs highest quarterly net profit at ₹6,532 cr in Q2FY27

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Global deposits and advances growth was healthy at 16.4 per cent and 18.3 per cent in the reporting quarter, respectively

By BL Mumbai Bureau

Updated - October 30, 2026 at 10:04 PM.

Chand likened the FCNR-B deposits to stored liquidity, which will support loan growth in the third and fourth quarter | Photo Credit: ANUSHREE FADNAVIS

Bank of Baroda (BoB) reported its highest quarterly standalone net profit at ₹6,532 crore in the second quarter (Q2FY27), up 36 per cent year-on-year (y-o-y), on the back of a decent growth in net interest income and robust growth in other income.

This profit growth comes even as non-performing asset (NPA) and bad debts written-off provisions, including prudential provisions for migrating to the ECL (Expected Credit Loss) credit impairment recognition framework, rose sharply.

The public sector bank logged a net profit of ₹4,809 crore in the year ago quarter. Global deposits and advances growth was healthy at 16.4 per cent and 18.3 per cent in the reporting quarter, respectively.

Excluding the impact of FCNR-B (Foreign Currency Non-Resident-Bank) deposits (the Bank mobilised $8.08 billion during the June 8-August 31 period under the RBI’s special foreign currency swap window) on deposit and advances, the global deposit and advances growth was at 11.2 per cent and 13.5 per cent, respectively.

“This is precisely in line with the guidance (for FY27) that was given — 10 to 12 per cent for deposit and 12 to 14 per cent for advances. We are upsizing the deposit and credit growth guidance to 11 to 13 per cent and 13 to 15 per cent, respectively,” said Debadatta Chand, MD & CEO, BoB.

Chand likened the FCNR-B deposits to stored liquidity, which will support loan growth in the third and fourth quarter. So, liquidity is not a challenge. He emphasised that the Bank is having a corporate loan pipeline (comprising loans under process, sanctioned, and sanctioned but not disbursed) of more than ₹60,000 crore.

Net interest income (difference between interest earned and interest expended) rose 9 per cent y-o-y to ₹13,026 crore ( ₹11,954 crore in Q2FY26).

Other income, comprising fee-based income, treasury income and other non-interest income, soared 96 per cent y-o-y to ₹6,881 crore ( ₹3,515 crore). This was helped by the sale of 76.90 lakh equity shares of NSE by way of offer for sale through initial public offering for a gross consideration of ₹1,372 crore.

The BoB Chief said: “If the prudential provisioning had not been done, the profit would have been higher. But then provisioning has been made just to take care of our migration towards the ECL (Expected Credit Loss provisioning norm).

“And if you look at our operating profit, we have been posting ₹7,000 crore plus for last many quarters. So taking that as a number, our expectation is that we will sustain it quarter to quarter.”

The Bank made substantially higher provisions of ₹1,935 crore towards NPA and bad debts written-off against ₹883 crore in Q2FY26.

Chnd said: “We have almost made ₹1,300 crore of prudential provisioning on the NPA and bad debt on need-based prudential provisioning considering our roadmap for ECL migration. Mind you that we had also had a floating provision of almost ₹2,500 crore earlier.

“So the bank is buffering its balance sheet in terms of our ECL migration. We have also made a contingency provision of ₹300 crore to take care of the change in valuation both in terms of the debt market and equity market which continues to be volatile.”

Published on October 30, 2026

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