Bank of Baroda Q2 Results (Oct 30 2026): Record ₹6,532 Crore Profit, Provisions Nearly Double

Bank of Baroda Q2 results, out on Friday, October 30, show the state-owned lender’s highest-ever quarterly profit. Standalone net profit rose about 36% year-on-year to ₹6,532 crore in the September 2026 quarter, from ₹4,809 crore a year earlier, according to The Economic Times. CNBC-TV18 puts the growth at 35.8%. But look a little closer and a good chunk of that jump came from a one-time gain, and the bank chose to park a lot of it in provisions.

Bank of Baroda Q2 results: where the profit came from

The big swing was in other income. Non-interest income rose 95.8% to ₹6,881 crore, from ₹3,515 crore a year ago, helped by ₹1,340 crore the bank earned from selling part of its stake in the National Stock Exchange (NSE) in September, ET reported.

The core lending business grew more slowly. Net interest income (NII), the gap between interest earned and interest paid, rose 9% to ₹13,026 crore from ₹11,954 crore, per CNBC-TV18. Net interest margin slipped to 2.74%, from 2.96% a year earlier, according to ET. Operating profit hit a record ₹11,430 crore, up 50.9%.

Provisions nearly doubled, by design

Here’s the part we found more telling. Provisions rose 93.3% year-on-year to ₹2,381.8 crore, from ₹1,232.47 crore, and were well above the ₹643.03 crore set aside in the June quarter, CNBC-TV18 reported. That wasn’t bad loans going sour. ET said the bank used the NSE windfall to strengthen its balance sheet, including a ₹1,300 crore prudential provision ahead of expected credit loss (ECL) rules likely to kick in from April next year, plus ₹300 crore of contingency provisions for investment volatility.

Asset quality actually got better. The gross NPA ratio fell to 1.78% from 2.16% a year ago, and net NPA came in at 0.37%. Provision coverage including technical write-offs was 94.65%. The slippage ratio eased to 0.69% for the quarter, and credit cost was 0.55%.

Loans grew faster than deposits

Global advances rose 18.3% to ₹15,12,448 crore, while global deposits grew 16.4% to ₹17,45,435 crore, per CNBC-TV18. International advances jumped 39.7%. Corporate loans were the laggard, up 6.3%. Return on assets for the quarter was 1.26% and return on equity 19.28%, and the capital adequacy ratio stood at 16.61% as of September 2026.

Management turned more confident too. CEO Debadatta Chand told ET the bank has raised its full-year guidance by a percentage point each, and now expects credit growth of 13% to 15% and deposit growth of 11% to 13% this fiscal.

What it means for the stock

Bank of Baroda shares ended at ₹238.50 on the BSE on Friday, up 1.24%, according to CNBC-TV18. The move was modest for a record quarter, and we’d wait to see whether the core numbers hold before reading much into it.

Our read: the headline record is flattered by the NSE sale, so don’t annualise it. The cleaner signals are falling NPAs, faster loan growth and a margin that is still under pressure. Spending a windfall on ECL buffers now should make the April transition smoother, and that’s a sensible use of one-off money. The margin trend is the number to watch next quarter. If you’re new to reading bank results, our guide on how to analyse quarterly results of a company walks through the key lines, and our earlier note on PSU bank stocks covers how the sector was set up going into results season.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.