Bank of Baroda (BoB) announced a substantial 71.86% year-on-year decrease in its standalone net profit for the first quarter ending June 30, 2026, settling at ₹1,278 crore. This sharp decline from ₹4,541.4 crore in the same period last year is attributed to a significant one-time exceptional loss.
Exceptional Loss from Abu Dhabi Settlement
The state-owned lender incurred an exceptional loss of ₹5,680.2 crore during the quarter. This loss stems from an out-of-court settlement reached by its Abu Dhabi Branch with the joint administrators of NMC Health PLC, NMC Healthcare Ltd, and NMC Holding Ltd. The settlement involved a payment of $600 million (approximately ₹5,700 crore) to resolve claims related to proceedings under ADGM and UK insolvency law, and UAE civil law. The bank clarified that all claims were resolved without admission of liability or wrongdoing, and the specific terms of the settlement agreement remain confidential.
Net Interest Income Shows Growth
Despite the profit slump, Bank of Baroda's Net Interest Income (NII), which is the difference between interest earned and interest paid, demonstrated robust growth. NII increased by 10% year-on-year, reaching ₹12,525 crore, up from ₹11,435 crore in the corresponding period of the previous fiscal year.
Asset Quality and Business Expansion
On the asset quality front, the bank saw a marginal increase in its gross non-performing assets (GNPA), which stood at 1.99% by the end of June 2026, compared to 1.89% in the March quarter. Net non-performing assets (NNPA) also edged up slightly to 0.50% from 0.45% sequentially.
BoB reported significant growth in its global business, which rose 15.4% year-on-year to ₹30,50,457 crore as of June 30, 2026. Global advances grew by 17.4% year-on-year, with domestic advances increasing by 16.1%. The bank's organic retail advances expanded by 18.4% year-on-year, driven by broad-based growth across various segments. Auto loans surged by 25.3%, mortgage loans by 27.4%, home loans by 14.7%, and education loans by 10.8% year-on-year.
Stock Performance
On the day of the announcement, Bank of Baroda's shares climbed 1.40% to close at ₹246.40. However, the counter remains down 18.07% year-to-date.