State-owned Bank of Baroda saw a significant 71.9% drop in its net profit for the April-June quarter of fiscal year 2027. This decline was mainly due to a substantial one-time loss of Rs 5,680 crore, despite a strong increase in net interest income and interest earnings. The bank’s net profit for the quarter stood at Rs 1,278 crore, a decrease from Rs 4,541 crore in the same period last fiscal year.
The primary reason behind the sharp fall in profitability was the recognition of a one-time loss during the quarter. However, Bank of Baroda’s core operating performance remained robust, with net interest income (NII) climbing 9.5% year-on-year to Rs 12,525 crore from Rs 11,435 crore, supported by consistent growth in its lending business.
Despite the challenging scenario, the bank’s interest income also showed positive growth, with a 6.8% increase year-on-year to Rs 33,211 crore from Rs 31,091 crore in the corresponding period last year. Operating profit before provisions and tax for the quarter was reported at Rs 8,127 crore, slightly lower than the Rs 8,236 crore recorded a year earlier.
Bank of Baroda witnessed a slight deterioration in its asset quality on a sequential basis. Gross non-performing assets (GNPA) rose to 1.99% at the end of June from 1.89% at the end of March, while net non-performing assets (NNPA) increased to 0.50% from 0.45% in the previous quarter. Despite the one-time loss, the bank’s provisions saw a notable decrease to Rs 643 crore during the quarter from Rs 3,150 crore in the preceding quarter and Rs 1,967 crore in the same quarter last year, indicating an enhancement in the bank’s underlying credit costs.
