Bank of Baroda Q1 Business Update: Global business rises 15% to Rs 30.51 lakh crore; advances grow 17%

Bank of Baroda Q1 Business Update: State-owned Bank of Baroda on Thursday reported healthy growth across its key business segments for the quarter ended June 30, 2026, with global business crossing Rs 30.5 lakh crore, driven by double-digit growth in both advances and deposits.

According to the bank's provisional business update, global business increased 15.46 per cent year-on-year to Rs 30.51 lakh crore, compared with Rs 26.43 lakh crore in the corresponding quarter last year.

The growth was led by a strong expansion in the bank's loan book. Global advances rose 17.42 per cent year-on-year to Rs 14.17 lakh crore, up from Rs 12.07 lakh crore a year earlier. Meanwhile, global deposits increased 13.81 per cent to Rs 16.34 lakh crore, compared with Rs 14.36 lakh crore in the year-ago period.

Domestic business records steady growth

The bank also reported robust growth in its domestic operations.

Domestic deposits grew 14.74 per cent year-on-year to Rs 13.82 lakh crore, while domestic advances increased 16.14 per cent to Rs 11.51 lakh crore.

Retail lending continued to remain a key growth driver. Domestic retail advances, excluding pool purchases, rose 18.45 per cent year-on-year to Rs 3.10 lakh crore, reflecting sustained demand across consumer loan segments.

On a sequential basis, however, the bank's overall business moderated slightly.

Global business stood at Rs 30.51 lakh crore at the end of June compared with Rs 30.78 lakh crore as of March 31, 2026. Global deposits eased to Rs 16.34 lakh crore from Rs 16.48 lakh crore, while global advances declined marginally to Rs 14.17 lakh crore from Rs 14.30 lakh crore.

The lender clarified that the figures for June 30 are provisional and remain subject to audit and review by its statutory central auditors.

March quarter performance remained strong

The latest business update comes after Bank of Baroda delivered a better-than-expected financial performance in the March quarter.

The bank reported a net profit of Rs 5,615.7 crore, an increase of 11.3 per cent from Rs 5,048 crore in the corresponding quarter of the previous year. The profit was higher than market expectations.

Net interest income (NII) rose 8.7 per cent year-on-year to Rs 12,493.7 crore, compared with Rs 11,494 crore in the year-ago period, supported by healthy credit growth.

Asset quality continues to improve

The lender also reported further improvement in asset quality.

Its gross non-performing asset (GNPA) ratio declined to 1.89 per cent from 2.04 per cent in the previous quarter, while the net NPA ratio improved to 0.45 per cent from 0.57 per cent.

In absolute terms, gross NPAs stood at Rs 27,058.6 crore, lower than Rs 27,399.4 crore reported in the December quarter. Net NPAs declined to Rs 6,316 crore from Rs 7,615 crore, reflecting continued recoveries and lower slippages.

Management maintains FY27 growth guidance

Managing Director and Chief Executive Officer Debadatta Chand said the bank continues to focus on expanding its retail, agriculture and MSME (RAM) portfolio, describing the March quarter as one of the strongest over the last 10 quarters in terms of both deposit and advances growth.

For FY27, the bank has guided for deposit growth of 10-12 per cent and credit growth of 12-14 per cent. It has also retained its net interest margin (NIM) guidance of 2.75-2.95 per cent.

In addition, the lender expects return on assets (RoA) to remain above 1 per cent, while targeting a slippage ratio of 1.2-1.25 per cent and credit cost below 0.60 per cent.

Despite the healthy business update, shares of Bank of Baroda ended 4.20 per cent lower at Rs 260.10 on the BSE on Thursday.