Bank of Baroda reported a Bank of Baroda Q2 profit of Rs 6,532 crore on a standalone basis for the July-September quarter, up 35.8% from Rs 4,809 crore in the same period last year. The result, approved by the board on 30 October 2026 and released after the market closed, was the highest quarterly standalone profit the public sector lender has reported. The stock’s first reaction to the numbers comes on Monday, 2 November.
Net interest income, the difference between interest earned on loans and interest paid on deposits, rose 9% from a year earlier to Rs 13,026 crore. Other income almost doubled, rising 95.8% to Rs 6,881 crore from Rs 3,515 crore. Operating profit before provisions rose 50.9% to Rs 11,430 crore in the Bank of Baroda Q2 profit result, while profit before tax rose 42.6% to Rs 9,048 crore.
Bank of Baroda Q2 profit and the treasury gain
Most of the extra profit in the Bank of Baroda Q2 profit result came from the bank’s treasury operations rather than from its loan book. Treasury income rose to Rs 4,093 crore from Rs 1,086 crore a year earlier, close to four times the year-ago figure. That income included trading gains of Rs 1,824 crore and investment revaluation gains of Rs 1,907 crore.
Part of the treasury gain came from the sale of 76.90 lakh equity shares of the National Stock Exchange, sold through an offer for sale in the exchange’s initial public offering for a gross consideration of Rs 1,372 crore. The sale turned a long held investment into cash during the quarter, and it lifted non-interest income well above its normal level.
Treasury income moves with bond prices and market conditions, so it can vary sharply from one quarter to the next. A rise in government bond yields would shrink the value of the bank’s bond holdings and could reverse some of the revaluation gains booked in the September quarter. The bank’s core lending income, by contrast, changes more slowly.
Bank of Baroda Q2 profit from lending and deposits
The lending side of the Bank of Baroda Q2 profit result grew at a steadier pace. Total income rose to Rs 41,966 crore for the quarter. Advances grew 18.49% from a year earlier to Rs 14,91,038 crore at the end of September, while global deposits grew 16.4%. Interest earned rose 11.34% to Rs 35,085 crore, with interest on advances and bills up 13.82% to Rs 26,754 crore.
Margins on lending narrowed. The global net interest margin eased to 2.74% from 2.96% a year earlier and from 2.77% in the June quarter. Fee income fell 8.5%, which held back growth in non-interest income outside the treasury result. The margin pressure in the Bank of Baroda Q2 profit result shows the cost of deposits rising faster than the return on new loans, a pattern seen across public sector banks in recent quarters.
Asset quality improved. The gross non-performing asset ratio fell by 38 basis points from a year earlier to 1.78% from 2.16%. Provisions rose 93% from a year earlier to Rs 2,382 crore, but that figure was well below the Rs 6,323 crore booked in the June quarter. The capital adequacy ratio under Basel III norms was 16.61% at the end of September, against 16.54% a year earlier.
Bank of Baroda Q2 profit: what the bank expects next
Managing Director and Chief Executive Officer Debadatta Chand told analysts the bank has raised its credit growth guidance for 2026-27 to 13-15% from 12-14% earlier. Deposit growth guidance was raised to 11-13% from 10-12%. The bank expects to maintain its net interest margin between 2.75% and 2.90% for the full year, and it expects credit costs to stay below 0.60%.
For the first half of 2026-27, the bank reported net profit of Rs 7,810 crore, down 16.5% from Rs 9,351 crore in the first half of last year. The half-year fall reflects higher provisions of Rs 8,705 crore, against Rs 3,199 crore a year earlier, which weighed on the June quarter before the September recovery.
The bank’s board also fixed 20 November 2026 as the cut-off date for shareholder director elections ahead of an extraordinary general meeting on 21 December. The Bank of Baroda Q2 profit result will be tested in the coming months by whether treasury gains hold and whether loan growth at the guided pace can rebuild margins.