Q1 2026 Bank of Baroda Ltd Earnings Call Transcript
Key Points
- Bank of Baroda (BOM:532134) reported a strong growth in global advances by 12.6% year-over-year, with international advances growing at 13.6%.
- The bank's organic retail book grew by 17.5%, with significant growth in home loans (16.5%) and auto loans (17.9%).
- Operating profit for the quarter increased by 15% year-over-year, reaching INR 8,236 crores.
- The bank's asset quality remains robust, with a gross non-performing asset (GNPA) ratio improving by 60 basis points year-over-year.
- Capital adequacy remains strong with a CET1 ratio of 14.12% and a CRAR of 17.61%.
- Net profit growth was modest at 1.9% year-over-year, indicating pressure on profitability.
- Margins have been under pressure due to repo rate cuts, with the net interest margin (NIM) standing at 2.91%, a decrease from the previous quarter.
- The bank experienced a slippage ratio of 1.16% for Q1 FY 2026, with a notable slippage from a large international account.
- Fee income growth was soft at sub-10% year-over-year, indicating challenges in non-interest income generation.
- There is an expectation of continued pressure on margins in the next quarter due to ongoing asset-liability repricing.
Good evening, everyone, and welcome to Bank of Baroda's results for the quarter 1 ended June 30, 2025. Thank you all for joining us. We have with us today our MD & CEO Shri Debadatta Chand, and he's joined by the bank's Executive Directors and our CFO. We'll start with brief introductions and then a short presentation followed by opening remarks by Chand Sir, and the then we'll start with the Q&A session. Chand, Sir?
Yes. Thanks, [Roja]. Again, good evening to all of you, all my analyst friend, and let me introduce the management team here. I'm D. Chand, I'm MD and CEO of Bank of Baroda. And with me Mr. Lalit Tyagi, Executive Director, he looks after the Corporate Credit, [Interest] and Banking and Treasury as far as the bank's books are concerned.
With us, Mr. Sanjay Mudaliar. He's the Executive Director, he looks after the IT function of the entire bank, and also on the Retail Asset apart from multiple other department, he heads. With us Mr. Lal Singh,
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