Net interest income was almost unchanged at ₹11,800 crore
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AMAN RAJ
Bank of Baroda (BoB) reported a modest 4.50 per cent year-on-year (y-o-y) growth in third quarter standalone net profit at ₹5,055 crore, with the bottom line being supported by non-interest income and write-back in provisions for non-performing assets (NPA) & bad debts written-off.
The public sector bank profit growth came amid decent growth in total deposits (10.3 per cent y-o-y) and global gross advances (14.7 per cent). It logged a net profit of ₹4,837 crore in the year-ago quarter.
The bank’s Board on Friday approved raising of long term bonds for financing of infrastructure and affordable housing/ long term green infrastructure up to ₹10,000 crore. This is in addition to ₹5,000 crore remaining from previous approval, taking the total issue size up to ₹15,000 crore in single or multiple tranches during the FY26 and beyond if found feasible.
Net interest income (difference between interest earned and interest expended) was almost unchanged at ₹11,800 crore (₹11,786 crore in Q3FY25).
Other income, comprising fee-based income, treasury income and other non-interest income, was up 6 per cent y-o-y at ₹3,600 crore (₹3,400 crore).
Debadatta Chand,MD & CEO, said Q3FY26 was one of the strongest quarters for the Bank in terms of business (credit and deposit growth). He emphasised that the quarter was a normalised one, with no one-off income.
NIM dips
Net interest margin (NIM) declined to 2.79 per cent from 3.04 per cent a year ago. Chand said the Bank will end FY26 with a NIM of 2.85-.3.00 per cent.
Operating profit was down 3.7 per cent y-o-y at ₹7,377 crore (₹7,664 crore). The BoB chief said the bank has a consistent and stable operating model, clocking an operating profit of over Rs 7,000 crore over the last nine quarter and a net profit of over ₹4,000 crore over the last 10 quarters.
Fresh slippages were higher at ₹2,676 crore (₹2,503 crore). However, reduction in NPAs too was higher at ₹3,183 crore (₹2,995 crore).
Gross NPA position improved to 2.04 per cent of gross advances as at December-end 2025 from 2.43 per cent as at December-end 2024. Net NPA position too improved a shade to 0.57 per cent of net advances from 0.59 per cent.
Provisions for for NPA & bad debts written-off declined 40 per cent to ₹559 crore (₹871 crore). However, provision for standard advances was up 46.5 per cent to ₹183 (₹125 crore).
Global advances increased 14.7 per cent y-o-y to stand at ₹13,44,904 crore as at December-end 2025. Within this domestic gross advances and international advance were up 13.6 per cent and 19.3 per cent yoy to stand at ₹10,96,557 crore and ₹2,48,348 crore, respectively.
Agriculture advances clocked the highest growth of 19 per cent within domestic advances, followed by retail (17.4 per cent), MSME (16.4 per cent) and corporate 8.1 per cent.
Chand said while BoB continues with the 11-13 per cent credit growth target for FY26, there could be an upside. The bank has built up a corporate loan sanctions pipeline of ₹75,000 crore, including about ₹45,000 crore sanctioned loans yet to be disbursed and about ₹30,000 crore worth of loan proposals under process.
Total deposits rose about 10.3 per cent y-o-y and stood at ₹15,46,749 crore as at December-end 2025. Within this, domestic deposits were up 11.1 per cent y-o-y and stood at ₹13,07,189 crore.
Low-cost current account, savings account (CASA) deposits declined to 38.45 per cent of domestic deposits (39.33 per cent a year ago).
BoB shares closed at ₹299.35 apiece, down 1.04 per cent over the previous close on BSE.
Published on January 30, 2026
