Bank of Baroda Reports Profit Amidst Margin Challenges

Bank of Baroda reported a 5.59% increase in its March quarter net profit, reaching Rs 5,415 crore. Despite growth in loan disbursements, a decline in net interest margin impacted core income. The bank is addressing investor concerns with strategies to improve NIMs and targeting new fiscal growth.

Bank of Baroda announced a 5.59% rise in its consolidated net profit for the March quarter, totaling Rs 5,415 crore, despite a drop in net interest margin. On a standalone basis, the state-owned bank recorded a 3.3% growth in net income.

The core net interest income saw a 6.6% decline, primarily due to a 0.25% dip in NIM, leading to some investor apprehensions as the stock fell over 10% during market hours. Managing Director Debadatta Chand addressed these concerns, highlighting that market factors have driven up deposit costs, affecting NIMs.

Chand assured stakeholders that NIMs would face pressure in the first half of FY26 but are expected to widen in the second half. The bank plans to maintain its loan book growth while enhancing asset quality, with the gross non-performing assets ratio improving to 2.26% as of March 31, marking a 13-year low.

(With inputs from agencies.)