Bank of Baroda Q1 profit slumps 72% to Rs 1,278 crore after one-time exceptional loss

Bank of Baroda Ltd (BoB) on Friday reported a sharp 71.86 per cent year-on-year (YoY) decline in its standalone net profit for the June quarter after booking a one-time exceptional loss of Rs 5,680.2 crore linked to an out-of-court settlement by its Abu Dhabi Branch.

The state-owned lender posted a standalone net profit of Rs 1,278 crore for the quarter ended June 30, 2026, compared with Rs 4,541.4 crore in the corresponding period last year.

Despite the steep decline in profit, the bank's net interest income (NII) -- the difference between interest earned and interest paid -- increased 10 per cent YoY to Rs 12,525 crore from Rs 11,435 crore.

On the asset quality front, gross non-performing assets (GNPA) stood at 1.99 per cent at the end of June, compared with 1.89 per cent in the March quarter. Net non-performing assets (NNPA) also edged higher to 0.50 per cent from 0.45 per cent sequentially.

BoB said its global business rose 15.4 per cent YoY to Rs 30,50,457 crore as of June 30, 2026. Global advances grew 17.4 per cent YoY, while domestic advances increased 16.1 per cent.

The lender said its organic retail advances expanded 18.4 per cent YoY, supported by broad-based growth across segments. Auto loans rose 25.3 per cent, mortgage loans 27.4 per cent, home loans 14.7 per cent and education loans 10.8 per cent YoY.

Earlier this month, the lender had informed stock exchanges that it entered into an out-of-court settlement with the joint administrators of NMC Health PLC, NMC Healthcare Ltd and NMC Holding Ltd, with the payment being settled by its Abu Dhabi Branch.

BoB had said the matter involved proceedings under ADGM and UK insolvency law, and UAE civil law in relation to NMC Health, NMC Holding and NMC Healthcare.

Sharing details of the settlement, the bank said, "NMC Health, NMC Healthcare, NMC Holding, and their respective Joint Administrators have resolved the claims between them and the Bank of Baroda in consideration for, inter alia, payment by Bank of Baroda of $600 million (around Rs 5,700 crore), pursuant to a settlement agreement. All claims, causes of action, etc. between them have been resolved without admission of liability or wrongdoing. The settlement agreement and its terms otherwise remain confidential. The liability of the bank in these proceedings is limited to this sum."

On the stock-specific front, BoB climbed 1.40 per cent to close at Rs 246.40. At this level, the counter remains down 18.07 per cent year-to-date (YTD).