Bank of Baroda delivered robust growth across its global operations for the quarter ended September 2026, with global business rising 17.45% year-on-year to ₹32.64 lakh crore as of September 30, 2026. According to the bank's Q2 business update, global advances grew 18.27% YoY to ₹15.12 lakh crore, while global deposits increased 16.75% to ₹17.51 lakh crore during the same period. The strong performance demonstrates the bank's successful expansion in international markets and effective customer acquisition strategies.
In the domestic segment, Bank of Baroda maintained strong momentum with total deposits rising 17.01% YoY to ₹14.88 lakh crore as of September 30. As reported by CNBC TV18, domestic advances grew 13.5% to ₹11.88 lakh crore, indicating healthy growth in the bank's core domestic business. The domestic Current Account Savings Account (CASA) ratio stood at 38.9%, providing a low-cost deposit base that lowers funding costs and protects margins. Domestic deposits grew 12.8% year-on-year to ₹14,01,290 crore in FY26, with the domestic CASA ratio contributing significantly to the bank's funding profile.
Bank of Baroda recorded its highest-ever annual net profit of ₹20,021 crore in FY26, with revenue growing at a 13% CAGR over the past five years while net profit rose at a much faster 72% CAGR. The bank's total business surged 13.9% year-on-year to ₹30,78,366 crore as global deposits grew 12.0% and advances surged 16.2%. However, net interest margin (NIM) contracted 19 bps to 2.89% in FY26, while the cost-to-income ratio increased 121 bps to 49.15%, showing higher expenses. The bank's Return on Equity stands at 15.39% and Return on Assets is consistently above 1%, demonstrating strong operational efficiency.
Bank of Baroda achieved exceptional asset quality improvements with gross NPAs falling to a multi-year low of 1.89% (down from 2.26% as of Q4FY25) and net NPAs improving to 0.45% (down from 0.58%) in FY26. The slippage ratio declined by 6 bps to 0.72%, indicating improved asset quality and fewer additions to stressed loans. About 96% of domestic advances above ₹50 crore carry external ratings of 'A and above', reducing default risk and stabilising asset performance. The bank maintains a high provision coverage ratio (PCR) of 93.94% and ₹2,500 crore in floating provisions, providing strong buffers against asset impairment losses. Credit costs fell 1 bps to 0.46%, keeping credit default risk low while maintaining strong capital buffers.
Bank of Baroda maintains a robust Capital to Risk-Weighted Assets Ratio (CRAR) of 15.82% in FY26, significantly above the RBI-mandated threshold of 11.50% including the mandatory 2.5% Capital Conservation Buffer. The CRAR strengthened to 16.30% in Q1 FY27, providing comfortable headroom for future growth without restricting loan book expansion. As a Central Public Sector Enterprise (CPSE), the bank must pay a minimum dividend of 20% of net profit under Ministry of Finance guidelines, while RBI regulations mandate not more than 40% of net profit as dividends. The bank paid a dividend of ₹4,395.7 crore during FY26, with the Board recommending ₹8.50 per share (translating to a 3.7% dividend yield at current price of ₹231.0). The dividend per share has surged 3x from ₹2.85 in FY22 to ₹8.50 in FY26, while the payout ratio increased from 19% to 22.0%.
