Bank of Baroda Q1 Results | Profit, NII down; treasury income jumps nearly 7x, assets robust

State-owned Bank of Baroda Ltd (BoB) on Friday (July 25) reported a 1.8% year-on-year (YoY) dip in net profit at ₹4,541 crore for the first quarter ended June, 2025, beating Street estimates.

In the corresponding quarter of the previous fiscal, BoB posted a net profit of ₹4,458 crore. The CNBC-TV18 poll had predicted a profit of ₹4,340 crore for the quarter under review.

Net interest income (NII) for Q1FY26 dipped 1.4%, coming at ₹11,435 crore against ₹11,600 crore a year ago. The CNBC-TV18 poll had predicted a net interest income of ₹10,647 crore.

Also Read: Bank of Baroda lowers mandatory positive pay limit in phases to ₹2 lakh

Gross non-performing assets (GNPA) stood at 2.28% in the June quarter against 2.26% in the March quarter. Net NPA came at 0.6% against 0.58% quarter-on-quarter.

Bank of Baroda reported a 15% year-on-year rise in operating profit to ₹8,236 crore in Q1FY26, driven largely by a surge in non-interest income, which grew 88% YoY to ₹4,675 crore. This sharp rise was primarily due to a nearly sevenfold jump in treasury income, which came in at ₹2,226 crore.

Operating metrics remained stable, with the bank reporting a cost-to-income ratio of 48.87%, down 30 basis points YoY due to steady income growth and controlled expense expansion. Return on assets (RoA) stood at 1.03%, while return on equity (RoE) came in at 15.05%. The global net interest margin (NIM) for the quarter was 2.91%, with the domestic NIM slightly higher at 3.06%.

Also Read: Bank of Baroda cuts overnight lending rate by 5 bps, keeps other tenors unchanged

Asset quality remained strong. Gross non-performing assets (GNPA) dropped to 2.28%, down 60 basis points YoY, with absolute GNPAs reducing 10.7% YoY to ₹27,572 crore. Net NPA also declined by 9 bps YoY to 0.60%. Provision coverage ratio (PCR) stood at 93.18% including technical write-offs, and 74.04% excluding them. Credit cost remained low at 0.55%, while the slippage ratio was 1.16%.

The bank’s capital position was sound, with CRAR at 17.61% (tier I at 15.15%, CET-1 at 14.12%, and tier II at 2.46%). On a consolidated basis, CRAR stood at 18.29%, with CET-1 at 14.84%. The consolidated liquidity coverage ratio (LCR) was around 119%.

Bank of Baroda’s global advances grew 12.6% YoY to ₹12.07 lakh crore, with domestic advances increasing 12.4% to ₹9.91 lakh crore. This was led by a 17.5% YoY jump in organic retail loans, including robust growth in mortgage (18.6%), auto (17.9%), home (16.5%), education (15.4%), and personal loans (19.5%). The RAM (retail, agriculture, and MSME) segment constituted 62.7% of total advances, up 300 bps YoY.

Also Read: Bank of Baroda's global business grows 11% to ₹27.43 lakh crore in Q1FY26

On the deposit front, global deposits grew 9.1% YoY to ₹14.36 lakh crore, with domestic deposits rising 8.1% to ₹12.04 lakh crore. Domestic CASA deposits rose 5.5% to ₹4.73 lakh crore, while international deposits increased 14.8% to ₹2.31 lakh crore.

The results came after the close of the market hours. Shares of Bank of Baroda Ltd ended at ₹243.50, down by ₹3.30 or 1.34%, on the BSE.