Bank of Baroda Raises Loan Growth Guidance to 12-13%; Q4 FY26 Net Profit Up 11.2%

Bank of Baroda has increased its loan growth guidance to 12-13%, up from the earlier guidance of 11%, according to an interview with the company. This update comes alongside the bank's announcement of audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, filed under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank reported a standalone net profit of INR 5,616 crore for the fourth quarter, marking an 11.2% increase compared to the same period in the previous year. For the full financial year, the net profit stood at INR 20,021 crore, crossing the INR 20,000 crore milestone. The Board of Directors, at their meeting held on May 8, 2026, recommended a final dividend of INR 8.50 per equity share of face value INR 2 each, fully paid up, for FY 2025-26, subject to declaration and approval at the ensuing 30th Annual General Meeting.

Financial Performance

The bank's operating profit for the quarter rose by 11.5% year-on-year to INR 9,069 crore, while the annual operating profit was recorded at INR 32,259 crore. Net Interest Income (NII) for the quarter expanded by 8.7% to INR 12,494 crore and stood at INR 47,682 crore for the fiscal year. Non-Interest Income for the quarter stood at INR 3,967 crore, a decline of 16.2% year-on-year, while for the full year it was INR 15,757 crore. The Cost to Income Ratio for Q4 FY26 improved to 44.90%, compared to 49.89% in Q4 FY25. Total income for the year reached INR 1,42,750 crore, compared to INR 1,38,089 crore in the previous year.

Financial Metrics (INR Crore): Q4 FY26 Q4 FY25 FY26 FY25 Net Interest Income: 12,494 11,494 47,682 46,518 Non-Interest Income: 3,967 4,735 15,757 15,788 Operating Profit: 9,069 8,132 32,259 32,435 Total Provisions: 3,150 1,552 7,149 5,980 Net Profit: 5,616 5,048 20,021 19,581 Cost to Income Ratio (%): 44.90% 49.89% 49.15% 47.94%

The detailed income breakdown reveals that total interest income for Q4 FY26 stood at INR 32,642 crore, up 4.9% year-on-year, driven by interest on advances of INR 24,745 crore. Total interest expenses for the quarter were INR 20,148 crore, a rise of 2.7% year-on-year. Operating expenses declined 8.7% year-on-year to INR 7,391 crore in Q4 FY26, with employee costs falling to INR 3,262 crore. For the full year, operating expenses stood at INR 31,180 crore, up 4.4% year-on-year. Profit before tax for Q4 FY26 was INR 5,919 crore, while tax provisions for the quarter stood at INR 303 crore.

Key Ratios

The Net Interest Margin (NIM) for Q4 FY26 stood at 2.89%, compared to 3.08% in Q4 FY25 and 2.98% in Q3 FY26. Return on Assets (ROA) for Q4 FY26 was 1.15%, while for the full year FY26 it stood at 1.06%. Return on Equity (ROE) for FY26 was 16.96%.

Key Ratios: Q4 FY26 Q3 FY26 Q4 FY25 FY26 FY25 Net Interest Margin (%): 2.89% 2.98% 3.08% 2.89% 2.79% Return on Assets (%): 1.15% 1.09% 1.16% 1.06% 1.16% Return on Equity (%): — — — 16.96% 17.49%

Asset Quality and Capital Adequacy

Bank of Baroda continued to maintain strong asset quality, with the Gross NPA (GNPA) ratio improving to 1.89% in Q4 FY26 from 2.04% on a quarter-on-quarter basis and from 2.26% in the corresponding quarter of the previous year. The Net NPA (NNPA) ratio also improved to 0.45% from 0.57% on a sequential basis. The Provision Coverage Ratio (PCR) including technically written-off accounts stood at 93.94%, while excluding technically written-off accounts it was 76.66%. The bank's Capital Adequacy Ratio (CRAR) was reported at 15.82%, with a CET-1 ratio of 13.16%. The Quarterly Average Liquidity Coverage Ratio (LCR) on a solo basis stood at approximately 127%.

Asset Quality Metrics: Q4 FY26 Q3 FY26 (QoQ) Q4 FY25 (YoY) Gross NPA Ratio: 1.89% 2.04% 2.26% Net NPA Ratio: 0.45% 0.57% 0.58% PCR (Incl. TWO) (%): 93.94% 92.73% 93.29% PCR (Excl. TWO) (%): 76.66% 72.21% 74.87% CRAR: 15.82% — 17.19% CET-1 Ratio: 13.16% 12.45% 13.78% Slippage Ratio (%): 0.89% 0.86% 1.00% Credit Cost (%): 0.76% 0.17% 0.44%

NPA Movement

The Gross NPA closing balance for Q4 FY26 stood at INR 27,059 crore, down from INR 27,399 crore in Q3 FY26 and INR 27,835 crore in Q4 FY25. Fresh slippages for the quarter were INR 2,944 crore, while total recoveries including technically written-off accounts amounted to INR 3,718 crore. Cash recovery and upgradation for Q4 FY26 stood at INR 2,233 crore. Collection efficiency, excluding agriculture, stood at 98.91% as of March 2026. The Provision Coverage Ratio under NCLT accounts stood at 99.70%.

NPA Movement (INR Crore): Q4 FY26 Q3 FY26 Q4 FY25 Opening Gross NPA: 27,399 27,600 28,471 Fresh Slippages: 2,944 2,676 2,873 Cash Recovery + Upgradation: 2,233 1,756 1,943 Write-Offs: 1,512 1,423 1,840 Closing Gross NPA: 27,059 27,399 27,835 Net NPA: 6,316 7,615 6,994

Business Growth

The bank's global business crossed the INR 30 lakh crore milestone, reaching INR 30,78,366 crore as of March 31, 2026, a growth of 13.9% year-on-year. Global advances grew by 16.2% year-on-year to INR 14,29,879 crore, while domestic advances increased by 14.5% to INR 11,69,458 crore. International advances grew strongly by 24.4% to INR 2,60,421 crore. Organic retail advances grew by 17.9% to INR 3,02,598 crore, driven by segments such as Auto Loans (up 20.6% to INR 56,157 crore), Mortgage Loans (up 19.3% to INR 26,559 crore), and Home Loans (up 14.6% to INR 1,50,305 crore). Gold Loans grew 98.0% to INR 14,010 crore. Global deposits increased by 12.0% to INR 16,48,487 crore, with domestic deposits rising 12.8% to INR 14,01,290 crore.

Business Details (INR Crore): Mar'26 Mar'25 YoY (%) Domestic Deposits: 14,01,290 12,42,169 12.8% International Deposits: 2,47,197 2,29,866 7.5% Global Deposits: 16,48,487 14,72,035 12.0% Retail Advances (Organic): 3,02,598 2,56,633 17.9% Domestic Gross Advances: 11,69,458 10,21,112 14.5% International Advances: 2,60,421 2,09,349 24.4% Global Advances: 14,29,879 12,30,461 16.2% Total Business: 30,78,366 27,02,496 13.9%

The domestic CASA ratio stood at 38.90% as of March 2026, compared to 39.97% in March 2025. Within domestic advances, the RAM (Retail, Agriculture, MSME) segment accounted for 61.0% of gross domestic credit as of March 2026. Agriculture advances grew 20.7% year-on-year to INR 1,91,063 crore, while MSME advances rose 15.6% to INR 1,59,786 crore and Corporate advances grew 11.2% to INR 4,56,584 crore.

Consolidated Financials and Subsidiaries

On a consolidated basis, Bank of Baroda reported total income of INR 1,56,825 crore for FY26, up 2.6% year-on-year. Consolidated profit after tax stood at INR 19,846 crore, a decline of 4.2% year-on-year. Consolidated EPS stood at INR 38.38 for FY26. The consolidated balance sheet total stood at INR 21,01,502 crore as of March 26, compared to INR 18,61,774 crore in March 25.

Consolidated P&L (INR Crore): FY26 FY25 YoY (%) Interest Income: 1,34,298 1,28,804 4.3% Non-Interest Income: 22,527 24,080 -6.4% Total Income: 1,56,825 1,52,884 2.6% Operating Profit: 36,248 37,898 -4.4% Profit after Tax: 19,846 20,716 -4.2% EPS (INR): 38.38 40.06 -4.2%

Key subsidiaries and joint ventures reported notable performance. IndiaFirst Life Insurance Co. Ltd. (holding 64.92%) reported AUM of INR 34,403 crore as of March 31, 2026, with gross premium income rising 11.10% to INR 8,019 crore for FY26. BOBCARD Limited (holding 100%) reported card spends of INR 41,510 crore for FY26, up 14.49% year-on-year, with net profit of INR 27.30 crore. Baroda BNP Paribas Asset Management India Pvt. Ltd. (holding 50.1%) reported AAUM of INR 59,858 crore, up 25.44% year-on-year, and net profit after tax of INR 84.50 crore, a growth of 51.92%. Nainital Bank Limited (holding 98.62%) saw net profit improve 26.43% to INR 63.24 crore for FY26, while its Gross NPA ratio improved significantly to 4.95% from 7.78%. India Infradebt Limited (JV stake 40.99%) reported total advances of INR 30,816.55 crore, up 20.40% year-on-year, with profit before tax growing 18.39% to INR 613.82 crore.

Sustainability and Digital Initiatives

Bank of Baroda made significant strides in sustainability during the period. The bank mobilized INR 1,899.12 crore of Green Deposits as on March 31, 2026, with the entire proceeds deployed in the renewable energy sector. It became the first public sector bank to issue Domestic Green Infrastructure Bonds, raising INR 10,000 crore via Series I Long-Term Green Infrastructure Bonds at a competitive cut-off coupon of 7.10%, with the issue oversubscribed 3x times the base issue of INR 5,000 crore. The bank invested INR 3,242.29 crore in Sovereign Green Bonds as of March 31, 2026. Renewable energy financing achieved was 36.60% of total energy sector financing as on March 31, 2026. The bank has outstanding of INR 30,371 crore for financing renewable energy projects under the Corporate Credit segment, with "Infra Power – Renewable Energy" identified as the Champion Sector. The bank has also set a Net Zero target by 2057, and achieved a 22.52% reduction in Scope 1 & 2 emissions in FY25 against the base year FY24, surpassing the short-term target of 20% reduction ahead of the prescribed timeline of FY 2027.

On the digital front, the bank onboarded 26 lakh users on digital channels during Q4 FY26. The bank ranked 2nd in Debit Card Issuance, 3rd in UPI Autopay, 3rd in IMPS Beneficiary, 3rd in UPI Remittance, and 5th in UPI Beneficiary as per NPCI data. The bank also launched an end-to-end digital Tractor Loan journey and implemented Robotic Process Automation (RPA) initiatives to optimize banking operations. The bank acquired 7.63 lakh merchants during FY26.

Dividend and Corporate Actions

The Board has fixed June 5, 2026, as the record date for the purpose of dividend payment of INR 8.50 per equity share. The 30th Annual General Meeting of the bank is scheduled to be held on June 23, 2026, via Video Conferencing. The bank also noted that it received capital repatriation from its overseas subsidiary, Bank of Baroda (UK) Ltd, and that India International Bank (Malaysia) Berhad was placed under liquidation during the year.