Bank of Baroda — Q4 FY26 earnings call
Summary generated by AI from the official transcript Bank of Baroda filed with BSE on 14 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Bank of Baroda reported a Q4 FY26 net profit of Rs. 5,616 crores, up 11.2% YoY, and a full-year net profit of Rs. 20,021 crores, both described as the highest ever for the Bank. Global advances grew 16.2% YoY and deposits grew 12%, with net interest margin at 2.89% for the quarter, up 10 bps sequentially. Management raised its FY27 guidance for loan growth to 12-14% and deposit growth to 10-12%, while flagging a Rs. 1,500 crore floating provision taken during the quarter and monitoring risks from the West Asia conflict.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Global business: Rs. 30.78 lakh crores (FY26)
p. 3
“the Bank's global business volume has crossed the milestone of Rs. 30 lakh crores and stands at Rs. 30.78 lakh crores, registering the YoY growth of 13.9 %”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
Global advances growth: 16.2% (FY26 YoY)
p. 3
“Our global advances have grown by 16.2 % YoY with the domestic advances growing at 14.5 % and international at 24.4 %.”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
Operating profit: Rs. 9,069 crores (Q4 FY26)
p. 3
“our operating profit for the quarter stands at Rs.9,069 crores, registering a growth of 11.5 % YoY”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
Net profit: Rs. 5,616 crores (Q4 FY26)
p. 3
“Our net profit for Q4 2026 stands at Rs. 5,616 crores, registering a growth of 11.2 % YoY, which is the highest ever quarterly net profit posted by the Bank.”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
Net profit: Rs. 20,021 crores (FY26)
p. 3
“Our net profit for FY 2026 stands at Rs. 20,021 crores, which is the highest ever net profit posted by the Bank.”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
Return on assets: 1.15% (Q4 FY26)
p. 3
“Return on assets remains consistently above 1 % at 1.15 % in Q4 2026.”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
Return on equity: 17.27% (Q4 FY26)
p. 3
“Return on equity stands at 17.27 % for the quarter.”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
Net interest margin: 2.89% (Q4 FY26)
p. 4
“With regard to our net interest margin, it stands at 2.89 % for the quarter, registering a sequential improvement of 10 bps.”
Mr. I V L Sridhar, page 4 of the filed PDF · View the filing
GNPA ratio: 1.89% (March 2026)
p. 4
“Our GNPA ratio has improved by 37 bps YoY and stands at 1.89 %.”
Mr. I V L Sridhar, page 4 of the filed PDF · View the filing
Net NPA ratio: 0.45% (March 2026)
p. 4
“Now Net NPA ratio is below 1 % at 0.45 %, an improvement of 13 bps YoY.”
Mr. I V L Sridhar, page 4 of the filed PDF · View the filing
Credit cost: 0.76% (Q4 FY26)
p. 4
“Credit cost for Q4 FY 2026 has increased to 0.76 % as against 0.44 % in Q4 2025.”
Mr. I V L Sridhar, page 4 of the filed PDF · View the filing
Floating provision: Rs. 1,500 crores (Q4 FY26)
p. 4
“This is mainly due to the, prudential provisioning, floating provisioning of Rs. 1,500 crores made by the Bank during the quarter.”
Mr. I V L Sridhar, page 4 of the filed PDF · View the filing
CASA ratio: 38.9% (March 2026)
p. 3
“The CASA ratio stands at 38.9 %, up by 45 bps QoQ.”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
CET-1 ratio: 13.16% (March 2026)
p. 4
“our capital position continues to be strong with CET 1 at 13.16 %, Tier 1 at 13.64 % and CRAR at 15.82 %.”
Mr. I V L Sridhar, page 4 of the filed PDF · View the filing
Dividend: Rs. 8.5 per share (FY26)
p. 4
“Bank has declared a dividend of Rs. 8.5 per share, subject to requisite approvals.”
Mr. I V L Sridhar, page 4 of the filed PDF · View the filing
Employee cost impact from mortality table change: Rs. 520 crores (Q4 FY26)
p. 3
“The Bank has adopted new mortality tables for arriving at AS-15 retirement liability, which led to an increase in the employee cost by Rs. 520 crores.”
Mr. I V L Sridhar, page 3 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Loan growth — 12 to 14% · FY27
stated firmly by Dr. Debadatta Chand
p. 6
“The loan growth earlier we had given a guidance of 11 to 13 %, now we are upsizing that to 12 to 14 %.”
Dr. Debadatta Chand, page 6 of the filed PDF · View the filing
Deposit growth — 10 to 12% · FY27
stated firmly by Dr. Debadatta Chand
p. 6
“Deposit growth guidance for the last year was 9 to 11 %, that we are improving to 10 to 12 %.”
Dr. Debadatta Chand, page 6 of the filed PDF · View the filing
Net interest margin — 2.75 to 2.95% · FY27
stated conditionally by Dr. Debadatta Chand
p. 6
“The NIM guidance, although we posted a NIM of 2.89%, but there would be going forward different market scenarios. So, the NIM guidance has been 2.75 to 2.95% for the full year.”
Dr. Debadatta Chand, page 6 of the filed PDF · View the filing
Return on assets — more than 1% · FY27
stated firmly by Dr. Debadatta Chand
p. 6
“ROA, as we always say, the ROA is going to be more than 1%”
Dr. Debadatta Chand, page 6 of the filed PDF · View the filing
Slippage ratio — 1 to 1.25% · FY27
stated conditionally by Dr. Debadatta Chand
p. 6
“the slippage ratio we continue to maintain at 1 to 1.25% considering the geopolitical issue that we are going to have, which is prevailing at this point of time.”
Dr. Debadatta Chand, page 6 of the filed PDF · View the filing
Credit cost — less than 0.60% · FY27
stated firmly by Dr. Debadatta Chand
p. 6
“The credit cost for the full year is going to be less than 0.60%.”
Dr. Debadatta Chand, page 6 of the filed PDF · View the filing
AT-1 and Tier 2 capital raise — Rs. 6,000 crores · FY27
stated firmly by Dr. Debadatta Chand
p. 12
“we have announced today that say Rs. 6000 crores of AT-1 and tier 2 we are going to raise this year.”
Dr. Debadatta Chand, page 12 of the filed PDF · View the filing
Equity capital raise — Rs. 8,500 crores · up to FY28
stated conditionally by Dr. Debadatta Chand
p. 15
“the Bank would be raising Rs. 8,500 crores of CET-1 over a period of medium term that goes up to FY28.”
Dr. Debadatta Chand, page 15 of the filed PDF · View the filing
ECLGS disbursement — Rs. 12,000 plus crores
stated conditionally by Dr. Debadatta Chand
p. 7
“Based on the 20% of that, we are expecting Rs. 12,000 plus crores is the impact which you can disperse because of the ECLGS scheme.”
Dr. Debadatta Chand, page 7 of the filed PDF · View the filing
Bulk deposit dependency — below 20%
stated as an aspiration by Dr. Debadatta Chand
p. 14
“There is no ideal percentage, the only stance is to reduce dependency. So, in that way, I will continue to reduce dependency. So currently also it is below 20%.”
Dr. Debadatta Chand, page 14 of the filed PDF · View the filing
Pension fund subsidiary launch — 6 to 9 months
stated conditionally by Dr. Debadatta Chand
p. 17
“my normal sense would be something between 6 to 9 months can be timelines on an anticipated level.”
Dr. Debadatta Chand, page 17 of the filed PDF · View the filing
Hiring — 4 to 5,000 headcounts · FY27
stated conditionally by Dr. Debadatta Chand
p. 14
“I think we'll be adding something around 4 to 5,000 headcounts in this year.”
Dr. Debadatta Chand, page 14 of the filed PDF · View the filing
Technology spend
stated as an aspiration by Dr. Debadatta Chand
p. 16
“I think we need to upsize that.”
Dr. Debadatta Chand, page 16 of the filed PDF · View the filing
Recovery from written-off accounts — Rs. 750-800 crores
stated conditionally by Dr. Debadatta Chand
p. 28
“I'll continue to have the same normalized guidance of Rs. 750-800 crores.”
Dr. Debadatta Chand, page 28 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Chand explained the different bases of yield and cost of deposit computations and noted a positive contribution from IT refunds alongside a NIM guidance band.
Answered by Dr. Debadatta Chand
Asked by Mayur Shetty: How does the improvement in NIM reconcile with rising cost of deposits and slightly lower yield on advances?
p. 6
“So, if you look at the growth, it is 2.89% versus 2.79%. But while articulating this stance, again, we say for the full year, it is 2.75 to 2.95%.”
Dr. Debadatta Chand, page 6 of the filed PDF · View the filing
Chand clarified floating provision is a separate buffer from ECL provisioning and cannot be used without regulatory approval.
Answered by Dr. Debadatta Chand
Asked by Mayur Shetty: Can the Rs. 1,500 crore floating provision be used for ECL requirements?
p. 7
“ECL provision is a different provision than the floating provision. Floating provision is a, it is buffer the balance sheet strength.”
Dr. Debadatta Chand, page 7 of the filed PDF · View the filing
Chand said it was created to strengthen PCR and net NPA metrics using IT refund proceeds, and is a general buffer rather than tied to a specific risk.
Answered by Dr. Debadatta Chand
Asked by Ashish Agashe: What is the purpose of the Rs. 1,500 crore floating provision, and is it linked to West Asia risk?
p. 8
“So, keeping these two factors, we have created this floating provision of Rs. 1,500 crores. And precisely, this is what the income tax refund money that has given that Rs. 1,500 crores.”
Dr. Debadatta Chand, page 8 of the filed PDF · View the filing
Chand said no impact was visible in current numbers but the Bank is monitoring the situation, particularly for MSME customers via the ECLGS scheme.
Answered by Dr. Debadatta Chand
Asked by Ashish Agashe: What is the impact of the Middle East conflict on the Bank so far?
p. 8
“As of today, we don't see anything on the global book also because of the geopolitical impact in global book.”
Dr. Debadatta Chand, page 8 of the filed PDF · View the filing
Chand said the international book is diversified and corporate book has behaved well, though a prolonged war could bring impact.
Answered by Mr. Lalit Tyagi
Asked by Piyush Shukla: What is the impact on the Bank's foreign loan portfolio and remittances from the West Asia conflict?
p. 9
“largely the corporate book in the international market have behaved well up till now and we do not see any impact on that book as of today.”
Mr. Lalit Tyagi, page 9 of the filed PDF · View the filing
Lal Singh said three accounts totaling Rs. 300 crores were transferred to NARCL this year, with other accounts resolved via ARCs.
Answered by Mr. Lal Singh
Asked by Pushpita Dey: How much bad loans were transferred to NARCL this year, and is NCLT still used?
p. 11
“This year to NARCL we have transferred three accounts amounting to Rs. 300 crores.”
Mr. Lal Singh, page 11 of the filed PDF · View the filing
Chand said slippages are normalized and offset by recoveries, and did not expect weak monsoon to materially affect the portfolio.
Answered by Dr. Debadatta Chand
Asked by Christina: What is the outlook on agriculture NPAs given a predicted weak monsoon?
p. 12
“Weak monsoon, I don't think that's going to impact because the Indian agriculture sector has been aligned with the seasonality since decades and decades.”
Dr. Debadatta Chand, page 12 of the filed PDF · View the filing
Chand declined to give an exact figure, noting the guidance band already accounts for the variability of the IT refund contribution.
Answered by Dr. Debadatta Chand
Asked by Rikin Shah: Can the interest on IT refund contribution to NIM be quantified?
p. 24
“we do not have a number, I do not have a number, you can offline, get a number.”
Dr. Debadatta Chand, page 24 of the filed PDF · View the filing
Chand said it is premature to quantify without full computation but expects the final numbers to be broadly aligned with earlier guidance.
Answered by Dr. Debadatta Chand
Asked by Jayant Kharote: Does the final ECL guideline align with the Bank's earlier estimated impact?
p. 25
“my sense is that whatever guidance we had given earlier, it is not going to, it would be aligned to those numbers.”
Dr. Debadatta Chand, page 25 of the filed PDF · View the filing
Chand said the Bank raised some bulk/CD deposits temporarily for liquidity given strong loan growth, while the floating provision remains a general balance sheet buffer.
Answered by Dr. Debadatta Chand
Asked by Kunal Shah: Was the increase in bulk deposits related to liquidity management, and what is the floating provision's purpose?
p. 27
“So, in that way, the Bank is managing the liability, I mean, the liability profile in a manner which is again optimal in terms of liquidity, optimal in terms of pricing, optimal in terms of margin.”
Dr. Debadatta Chand, page 27 of the filed PDF · View the filing
Chand said the contribution is volatile and guided only for the current year, without committing to a multi-year trend.
Answered by Dr. Debadatta Chand
Asked by Ankit Bihani: How long can interest income from IT refunds be expected to continue contributing to NIM?
p. 30
“My guidance for tax refund is based on this only 1 year.”
Dr. Debadatta Chand, page 30 of the filed PDF · View the filing
Chand said the Bank aims to bring excess SLR down to a 3-3.5% buffer over the 18% regulatory requirement, continuing an ongoing churn strategy.
Answered by Dr. Debadatta Chand
Asked by Rikin Shah: How much scope remains to reduce excess SLR holdings further?
p. 31
“We like to operate at a safety, I mean, a threshold of maybe 3-3.5% at all point of time.”
Dr. Debadatta Chand, page 31 of the filed PDF · View the filing
Chand confirmed the plan remains active and enabling until FY28, to be executed based on market conditions and capital needs.
Answered by Dr. Debadatta Chand
Asked by Jay Mundra: Is the capital raising plan of Rs. 8,500 crores in equity still on track?
p. 33
“Yes, it is on. It is always on table.”
Dr. Debadatta Chand, page 33 of the filed PDF · View the filing
Chand said Middle East exposure is around Rs. 50,000-60,000 crores spread across countries, mostly with strong corporates, but flagged a need for watchfulness.
Answered by Dr. Debadatta Chand
Asked by Kunal Shah: What is the Bank's exposure profile in the Middle East and risk of NPAs emerging over the next few quarters?
p. 35
“we need to be slightly watchful for a couple of quarters.”
Dr. Debadatta Chand, page 35 of the filed PDF · View the filing
Risks flagged
Geopolitical tension in West Asia impacting international book and MSME customers
p. 8
“But we are mindful of any impact that may come because of geopolitical issue directly on the domestic book and also on the international book.”
Dr. Debadatta Chand, page 8 of the filed PDF · View the filing
Sustained conflict could raise oil prices and impact overseas exposures
p. 9
“if the war continues for a longer time there are sustained impact, the oil continues to be at a higher rate, possibly there will be impact”
Dr. Debadatta Chand, page 9 of the filed PDF · View the filing
Sticky cost of deposits amid tight liquidity conditions
p. 24
“my sense is that, I mean, the cost of deposit is going to be sticky.”
Dr. Debadatta Chand, page 24 of the filed PDF · View the filing
Uncertainty in quantifying ECL impact until final guidelines are computed at transaction level
p. 7
“since there is a guidelines that has been issued and it impacts at transaction level, we are computing that. So, as on today, I do not have a number with regard to the ECL impact.”
Dr. Debadatta Chand, page 7 of the filed PDF · View the filing
Watchfulness needed on Middle East retail operations over coming quarters
p. 34
“Particularly Middle East, yes, we do have exposure because Middle East we have a large retail operation over there.”
Dr. Debadatta Chand, page 34 of the filed PDF · View the filing
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