Good news for Bank of Baroda shareholders: PSU lender posts record Rs 20,021 crore FY26 profit, announces 425% dividend payout

Bank of Baroda Q4FY26 Results: Bank of Baroda reported a record standalone net profit of Rs 20,021 crore for FY26, while consolidated profit stood at Rs 19,846 crore, driven by strong growth in retail and MSME lending along with improvement in asset quality. Following the strong earnings performance, the public sector lender also announced a dividend of Rs 8.50 per equity share for the financial year ended March 31, 2026.

The bank’s Global Business crossed the Rs 30 lakh crore milestone during the year, reflecting steady operational momentum across deposits and advances.

Asset quality improves further

Bank of Baroda continued to strengthen its balance sheet during FY26, with the standalone Gross NPA ratio declining to 1.89 per cent as of March 31, 2026, compared to 2.26 per cent a year earlier.

The bank’s Net NPA ratio improved to 0.45 per cent, while its Provision Coverage Ratio (PCR) stood at 93.94 per cent, highlighting a strong provisioning buffer and conservative risk management practices.

Operating profit for the year came in at Rs 32,259 crore.

Dividend details and AGM schedule

The Board of Directors recommended a dividend of Rs 8.50 per equity share on shares having a face value of Rs 2 each, subject to shareholder approval at the upcoming Annual General Meeting.

The bank has fixed June 5, 2026, as the record date for determining shareholder eligibility for the dividend payout.

The 30th Annual General Meeting (AGM) is scheduled to be held on June 23, 2026, through video conferencing.

Retail and MSME lending drive growth

The lender reported strong traction in retail and MSME businesses during FY26.

Organic retail advances grew by 17.9 per cent year-on-year, led by healthy demand in home loans, mortgage loans, auto loans and education loans.

Meanwhile, the bank’s Retail, Agriculture and MSME (RAM) portfolio grew 16.7 per cent and now contributes nearly 61 per cent of total advances, reinforcing the bank’s strategic focus on granular and diversified lending.

PSU banking space remains in focus

Analysts said Bank of Baroda’s FY26 performance reflected sustained improvement across profitability, loan growth and asset quality metrics.

The combination of record profit, lower bad loans and a healthy dividend payout is expected to keep the stock in focus as investors continue to track earnings momentum within the PSU banking sector.