Bank of Baroda Earnings Summary — Q1 FY2027
Bank of Baroda Reports Q1 FY2027 Results Impacted by One-Time International Legal Settlement
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 10 consecutive quarters.
- Revenue of ₹35,115 Cr is 6.8% higher year-on-year.
- Revenue has compounded at 5.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹1,783 Cr is 48.6% below the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at -37.5% annualised across the period.
- Operating margin stands at 65.5% in Q1 FY2027.
- Operating margin expanded by 479 bps year-on-year.
- Over the last two years operating margin has expanded by 39 bps.
- PBT margin is 6.3%.
- Expense growth of -6.2% remained below revenue growth of 6.8%.
- Operating profit of ₹22,985 Cr is 15.3% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 66/100 (Healthy) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 35,115 | 34,514 | 33,600 | 33,318 | 32,866 | 32,820 | 32,570 | 31,902 | 31,143 | 31,072 |
| Expenses | Stable | 12,130 | 13,155 | 12,390 | 11,548 | 12,928 | 12,712 | 10,654 | 12,755 | 10,879 | 12,269 |
| Operating Profit | Stable | 22,985 | 21,358 | 21,210 | 21,770 | 19,938 | 20,108 | 21,915 | 19,147 | 20,264 | 18,803 |
| Operating Margin | Stable | 65.5% | 61.9% | 63.1% | 65.3% | 60.7% | 61.3% | 67.3% | 60.0% | 65.1% | 60.5% |
| Other Income | Softening | 522 | 5,474 | 6,399 | 5,116 | 5,538 | 7,076 | 5,163 | 7,553 | 4,658 | 6,538 |
| Interest | Stable | 21,301 | 20,776 | 20,586 | 20,191 | 20,307 | 20,273 | 20,143 | 19,266 | 18,582 | 18,309 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Softening | 2,206 | 6,057 | 7,024 | 6,695 | 5,170 | 6,911 | 6,935 | 7,434 | 6,340 | 7,033 |
| Tax | Softening | 633 | 409 | 1,617 | 1,625 | 1,818 | 1,604 | 1,818 | 1,979 | 1,759 | 2,017 |
| Net Profit | Softening | 1,783 | 5,801 | 5,443 | 5,134 | 3,469 | 5,420 | 5,214 | 5,355 | 4,728 | 5,132 |
| Net Margin | Softening | 5.1% | 16.8% | 16.2% | 15.4% | 10.6% | 16.5% | 16.0% | 16.8% | 15.2% | 16.5% |
Key Takeaways
- Standalone Net Profit fell sharply to ₹1,278.39 crore due to a one-time exceptional charge of ₹5,680.23 crore ($600 million) for a legal settlement regarding the NMC Group insolvency.
- Total Income grew marginally by 2.56% YoY, reaching ₹36,681.09 crore, driven by high wholesale and retail banking segment revenues.
- Asset quality showed improvement on a YoY basis with Gross NPA ratio declining to 1.99% from 2.28% in June 2025, though it ticked up slightly from 1.89% in March 2026.
- Net NPA ratio remained stable and healthy at 0.50%, compared to 0.60% a year ago and 0.45% in the previous quarter.
- The Bank's Provision Coverage Ratio (PCR) remains high at 93.28% including technical write-offs, indicating a strong buffer against bad loans.
- Capital Adequacy Ratio (Basel III) stood at 16.30% with a CET-1 ratio of 13.90%, reflecting comfortable capital cushions despite the litigation payout.
- Domestic deposits reached ₹1,633,558.82 crore, while total advances stood at ₹1,395,726.86 crore as of June 30, 2026.
- The Investment Fluctuation Reserve (IFR) was discontinued per RBI norms, leading to the transfer of ₹3,340 crore to the General Reserve.
Management Guidance
Management focused on resolving a decade-long international litigation through the NMC settlement to avoid prolonged uncertainty and associated legal costs. The bank intends to continue its trajectory of profitable growth and digital transformation despite the one-off impact on this quarter's earnings.
Sentiment Shift
Stable
While the headline net profit missed significantly due to the exceptional legal item, underlying operational metrics including asset quality and capital adequacy remain robust and stable.
Outlook
The outlook remains positive as the absolute resolution of the NMC legal claims removes a major overhang of contingent liability. Operational efficiency is expected to recover in the coming quarters without the weight of exceptional litigation costs.
From the Annual Report (Key Quotes)
“The above settlement is to bring the disputes to conclusion thereby avoiding prolonged litigation, uncertainty and associated costs.”
“The liability of the Bank in these proceedings is limited to the sum of USD 600 million... Settlement amount has been debited to the Profit & Loss Account for the quarter ended June 30, 2026.”
“All claims, causes of action, etc. between them have been resolved without admission of liability or any wrongdoing.”
Official Quarterly Documents
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This summary is AI-generated from Bank of Baroda's latest quarterly filing and earnings call. For informational purposes only — not investment advice.