The public sector bank Bank of Baroda announced on Friday a 36 percent year-on-year increase in net profit, reaching a record 6,532 crore rupees for the quarter from July to September 2027 financial year (Q2FY27). This record figure was driven by increased treasury income, as well as an 18.3 percent growth in loans and improved asset quality.
The profit growth resulted from a sharp increase in non-interest income, which occurred against the backdrop of the Initial Public Offering (IPO) of the National Stock Exchange (NSE). The bank's Net Interest Income (NII) increased by 9 percent year-on-year, amounting to 13,026 crore rupees in Q2FY27. Meanwhile, non-interest income grew by almost 96 percent year-on-year, reaching 6,881 crore rupees.
In Q2FY27, the bank received treasury income of 4,093 crore rupees, significantly exceeding 1,086 crore rupees in Q2FY26 and 893 crore rupees in Q1FY27. However, the Net Interest Margin (NIM) decreased by 3 basis points compared to the previous quarter, standing at 2.74 percent.
The bank's provisions increased substantially, rising by 93 percent year-on-year to 2,382 crore rupees in Q2FY27, although this amount was less than 6,323 crore rupees in Q1FY27. New write-offs decreased to 2,392 crore rupees in Q2FY27 compared to 3,183 crore rupees in Q1FY27 and 2,669 crore rupees in Q2FY26.
The bank's asset quality improved: the Gross Non-Performing Assets (NPA) ratio decreased by 21 basis points compared to the previous quarter, reaching 1.78 percent at the end of Q2FY27. Net NPAs decreased by 13 basis points to 0.37 percent for the same period.
The bank attracted FCNR(B) deposits totaling $8.08 billion under the Reserve Bank of India's (RBI) special currency exchange window. The bank's global loans grew by 18.3 percent year-on-year, reaching 15.12 trillion rupees by September 2026, supported by a 39.7 percent rise in international loans to 3.24 trillion rupees. Domestic loans increased by 13.5 percent year-on-year to 11.87 trillion rupees.
Regarding deposits, global deposits grew by 16.4 percent year-on-year to 17.45 trillion rupees, while domestic deposits increased by 16.6 percent to 14.83 trillion rupees. International deposits grew by 14.9 percent to 2.61 trillion rupees. As of September 30, 2026, domestic CASA deposits grew by 10.4 percent year-on-year to 5.39 trillion rupees.
Among segments, the bank's organic retail loans grew by 18.6 percent year-on-year, with auto loans showing the highest growth at 27.8 percent, followed by home loans (20.3 percent), housing loans (14.6 percent), and education loans (9.9 percent). The agricultural loan portfolio increased by 19 percent year-on-year to 2.01 trillion rupees, and the SME organic loan portfolio expanded by 21.3 percent to 1.75 trillion rupees. Corporate loans showed relatively modest growth of 6.3 percent, reaching 4.25 trillion rupees.