Bank of Baroda's Growth Story: Digital Strength and Solid Outlook Boost Shareholder Value
Bank of Baroda (BoB), India’s second-largest public sector bank, serves a vast customer base backed by over 16,500 digital touchpoints and nearly 9,500 ATMs. The bank has seen business growth with global gross business up 10.5% to ₹27.8 trillion as of September 2025. Domestic deposits rose 9.7% to ₹12.7 trillion and advances increased 11.9% to ₹12.8 trillion, driven by home loans, vehicle loans, personal loans, and mortgages.
BoB’s digital capabilities remain a major strength, with 99% of new savings accounts acquired digitally. The CASA ratio slightly fell to 38.4%, reflecting changes in deposit profiles. On the earnings front, net interest margins dipped 15 basis points to 2.9%, pressured by interest rate movements, while net interest income grew 2.7% to ₹119.5 billion. Asset quality improved with gross non-performing assets down to 2.2% and net NPAs steady at 0.6%.
Net profit declined 8.2% to ₹48.1 billion, impacted by a high base from last year’s one-time recoveries, but excluding those, profit rose 22%. Return on assets is a healthy 1.1%, indicating operational efficiency. Looking ahead, the bank plans advances growth of 11-13% in FY26, led by retail loans expected to increase 18-20%. A strong loan pipeline includes ₹400 billion in sanctioned loans and ₹250 billion in proposals.
Net interest margin is anticipated to stabilize and improve in the latter half of the year. For shareholders,