News ArticleBank of Baroda Reports Record Q2 FY27 Net Profit of INR 6,532 Crores with 18.3% Global Advances Growth
Quarterly operating profit jumps 50.9% YoY to INR 11,430 crores; robust asset quality and capital position maintained
Bank of Baroda achieved its highest ever quarterly net profit of INR 6,532 crores in Q2 FY27, supported by 18.3% year-on-year global advances growth and 16.4% deposit growth. Key highlights include strong retail and international business expansion, improved asset quality, and robust capital adequacy ratios.
Bank of Baroda
Earnings Call Transcript
Bank of Baroda posted its highest ever quarterly net profit of INR 6,532 crores for Q2 FY27, marking a 35.8% year-on-year increase driven by strong growth in global advances and deposits alongside improved asset quality and capital ratios.
The bank's global business reached INR 32.58 lakh crore, a 17.2% year-on-year increase with global advances growing 18.3%. Domestic advances rose 13.5%, while international advances surged 39.7%. The advances growth was well supported across retail segments including auto loans (+27.8%), mortgages (+20.3%), home loans (+14.6%), education loans (+9.9%), and personal loans (+6.8%).
Total deposits grew by 16.4% year-on-year with domestic deposits up 16.6%. Domestic current and savings account (CASA) deposits increased 10.4%, contributing to a CASA ratio of 36.37%. The credit-deposit ratio reduced by 323 basis points to 80.08%.
Profitability metrics improved significantly, with operating profit rising 50.9% YoY to INR 11,430 crores, and half-year operating profit up 23.7% YoY to INR 19,557 crores. Return on assets increased 19 basis points to 1.26%, and return on equity improved by 363 basis points to 19.28% for the quarter.
Asset quality remained strong as gross non-performing assets (NPAs) declined by 38 basis points YoY to 1.78%, net NPAs improved to 0.37%. Provision coverage ratio (PCR) reached 94.65% including technical write-offs. Credit cost for the quarter stood at 55 basis points, reflecting prudent provisioning.
The bank’s capital adequacy remains robust, with common equity tier 1 (CET-1) ratio at 14.20%, tier 1 ratio at 14.70%, and overall CRAR at 16.61%. The quarterly average liquidity coverage ratio (LCR) was healthy at approximately 133.6%.
Highlights
- Global business crossed INR 32.58 lakh crore, growing 17.2% YoY.
- Global advances increased 18.3% YoY, domestic advances by 13.5%, international advances by 39.7%.
- Retail loan segments showed robust growth: auto loans +27.8%, mortgages +20.3%, home loans +14.6%.
- Total deposits grew 16.4% YoY; domestic CASA ratio improved to 36.37%.
- Operating profit for Q2 FY27 reached INR 11,430 crores, a rise of 50.9% YoY.
- Net profit at a record INR 6,532 crores, up 35.8% YoY for Q2 FY27, highest in bank’s history for a quarter.
Key Data Snapshot
What happened
- Bank of Baroda posted its highest ever quarterly net profit of INR 6,532 crore in Q2 FY27, a 35.8% increase year-on-year.
- Operating profit surged 50.9% YoY to INR 11,430 crore, marking the strongest quarter in recent years.
- Global business (advances plus deposits) crossed INR 32.58 lakh crore, expanding 17.2% YoY.
Key details
- Global advances grew by 18.3% YoY, supported by strong retail, agricultural, MSME, and corporate loan growth.
- Domestic advances grew 13.5%, and international advances soared 39.7%.
- Total deposits increased 16.4% YoY, with domestic CASA deposits up 10.4% contributing to a CASA ratio of 36.37%.
- Credit deposit ratio declined by 323 basis points to 80.08%.
Financial performance
- Return on assets (ROA) improved to 1.26% for the quarter, up 19 basis points from last year.
- Return on equity (ROE) increased significantly by 363 basis points to 19.28% for Q2 FY27.
- Yield on advances increased slightly by 4 basis points sequentially to 7.41%.
- Net interest margin stood at 2.74% during the quarter.
Operational performance
- Strong retail loan growth across segments: auto loans (+27.8%), mortgages (+20.3%), home loans (+14.6%), education loans (+9.9%), and personal loans (+6.8%).
- Agricultural loans grew by 19%, and MSME loans increased by 21.3%.
Risks and conditions
- Gross NPA ratio improved to 1.78%, falling by 38 basis points YoY.
- Net NPA ratio reduced to 0.37%, improved by 20 basis points YoY.
- Provision coverage ratio (PCR) strengthened to 94.65% including technical write-offs.
- Credit cost for the quarter stood at 55 basis points, including prudent provisions.
Funding and capital details
- Capital adequacy ratios remained strong with CET-1 at 14.20%, Tier 1 at 14.70%, and overall CRAR at 16.61%.
- Liquidity coverage ratio (LCR) averaged approximately 133.6% for the quarter.
Highlights
- Global business crossed INR 32.58 lakh crore, growing 17.2% YoY.
- Global advances increased 18.3% YoY, domestic advances by 13.5%, international advances by 39.7%.
- Retail loan segments showed robust growth: auto loans +27.8%, mortgages +20.3%, home loans +14.6%.
- Total deposits grew 16.4% YoY; domestic CASA ratio improved to 36.37%.
- Operating profit for Q2 FY27 reached INR 11,430 crores, a rise of 50.9% YoY.
- Net profit at a record INR 6,532 crores, up 35.8% YoY for Q2 FY27, highest in bank’s history for a quarter.
Disclosures
- SEBI (LODR) Regulations, 2015
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