Bank of Baroda reported a net profit of Rs 6,532 crore for the September quarter (Q2 FY27), a 35.8 per cent jump. The bank also saw its net interest income rise 9 per cent to Rs 13,026 crore. These results beat Zee Business estimates as the bank improved its asset quality.

State-owned Bank of Baroda on Friday reported better-than-expected financial results for the September quarter (Q2 FY27). Image Credit: ANI

State-owned Bank of Baroda on Friday reported better-than-expected financial results for the September quarter (Q2 FY27), with net profit and net interest income (NII) surpassing Zee Business estimates.

The bank also reported an improvement in asset quality, with both gross and net non-performing asset (NPA) ratios declining sequentially.

The bank reported a net profit of Rs 6,532 crore in Q2 FY27, registering a 35.8 per cent year-on-year (YoY) increase against Rs 4,810 crore in the corresponding quarter last year. The profit was higher than the Zee Business estimate of Rs 5,290 crore.

On a quarter-on-quarter (QoQ) basis, net profit surged 411.1 per cent from Rs 1,278 crore in Q1 FY27.

Bank of Baroda Q2 results: NII beats Zee Business estimates

The bank's net interest income (NII), which is the difference between interest earned and interest expended, increased 9 per cent YoY to Rs 13,026 crore in Q2 FY27 against Rs 11,954 crore in the year-ago quarter.

The NII figure is higher than the Zee Business estimate of Rs 12,370 crore. On a sequential basis, NII increased 4 per cent from Rs 12,524 crore in Q1 FY27.

Interest income rose 5.6 per cent QoQ to Rs 35,085 crore from Rs 33,211 crore in the previous quarter. Meanwhile, interest expenses increased 6.6 per cent to Rs 22,059 crore against Rs 20,686 crore in Q1 FY27.

Bank of Baroda Q2 FY27: Non-interest income nearly doubles

The bank's non-interest income witnessed a significant improvement during the September quarter, rising 98.3 per cent QoQ to Rs 6,881 crore from Rs 3,470 crore in the preceding quarter.

Consequently, operating income increased 24.5 per cent to Rs 19,907 crore in Q2 FY27 compared with Rs 15,995 crore in Q1 FY27.

Operating expenses, however, also increased during the quarter. They rose 7.7 per cent to Rs 8,477 crore from Rs 7,868 crore in the June quarter.

Despite the increase in expenses, the bank's operating profit improved 40.6 per cent QoQ to Rs 11,430 crore from Rs 8,127 crore.

The bank reported total provisions of Rs 2,382 crore during the September quarter, down 62.3 per cent from Rs 6,323 crore in the preceding quarter.

However, provisions for non-performing asset (NPA) bad debts increased 85.5 per cent to Rs 1,935 crore from Rs 1,043 crore in Q1 FY27.

Profit before tax (PBT) jumped 401.6 per cent QoQ to Rs 9,048 crore from Rs 1,804 crore in the previous quarter. Tax provision increased to Rs 2,517 crore from Rs 526 crore.

Bank of Baroda Q2 results: Asset quality better than estimates

Bank of Baroda reported an improvement in its asset quality during the September quarter, with both gross and net NPA ratios coming in better than Zee Business estimates.

The bank's gross non-performing asset (GNPA) ratio stood at 1.78 per cent in Q2 FY27, against the Zee Business estimate of 1.9 per cent. The ratio was 2 per cent in the previous quarter, indicating an improvement of 22 basis points (bps).

Sequentially, the GNPA ratio declined from 1.99 per cent in Q1 FY27 to 1.78 per cent in Q2 FY27, a reduction of 21 bps.

Similarly, the net non-performing asset (NNPA) ratio came in at 0.37 per cent, compared with the Zee Business estimate of 0.5 per cent. It also improved from 0.50 per cent in the preceding quarter, marking a decline of 13 bps.

The bank's provision coverage ratio (PCR), including technical write-offs (TWO), improved to 94.65 per cent in Q2 FY27 from 93.28 per cent in Q1 FY27, an increase of 137 bps.

The PCR without technical write-offs also improved to 79.48 per cent, registering an increase of 535 bps year-on-year.

Bank of Baroda Q2 FY27: Key financial ratios

The bank's global net interest margin (NIM) stood at 2.74 per cent in Q2 FY27 compared with 2.77 per cent in Q1 FY27, indicating a decline of 3 bps.

Return on assets (ROA), however, improved to 1.26 per cent from 0.25 per cent in the preceding quarter.

The capital adequacy ratio (CRAR) increased to 16.61 per cent at the end of September 2026 from 16.30 per cent at the end of June 2026. The Common Equity Tier-1 (CET-1) ratio also improved to 14.20 per cent from 13.90 per cent.

Bank of Baroda Q2 FY27: Deposits and advances

On the business front, the bank's domestic deposits increased 7.4 per cent QoQ to Rs 14,83,521 crore as of September 30, 2026, compared with Rs 13,81,535 crore at the end of June 2026.

Domestic CASA deposits rose 3.5 per cent to Rs 5,39,515 crore from Rs 5,21,149 crore in the preceding quarter. Global deposits increased 6.9 per cent to Rs 17,45,435 crore from Rs 16,33,559 crore.

Domestic advances grew 3.2 per cent QoQ to Rs 11,87,944 crore against Rs 11,50,906 crore in the June quarter. The bank's organic retail loan portfolio increased 4.6 per cent to Rs 3,24,040 crore from Rs 3,09,674 crore in Q1 FY27.

Global advances rose 6.8 per cent to Rs 15,12,448 crore compared with Rs 14,16,898 crore at the end of the previous quarter.