Bank of Baroda Q1 FY27 Results (NSE: BANKBARODA)
Signal: Earnings grew
The read
Consolidated PAT of ₹1,783 Cr beat the year-ago ₹3,469 Cr by 51% but is heavily distorted by the ₹5,680 Cr NMC settlement charge; excluding that exceptional, operational PAT would have been ~₹6,250 Cr, more than doubling YoY on strong NII growth (+10%), flat opex (+1.3%), and 21% lower provisions. Asset quality improved: GNPA 1.99% vs 2.28% a year ago, NNPA 0.50% vs 0.60%. The bank generated operating leverage with opex growing only 1.3% on 7.6% revenue growth, expanding OPM by 323bps. However, NIM compressed 14bps YoY to 2.85%, a concern given competitive pressure on deposit pricing.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹41,316.71 Cr | +7.6% | +3.3% |
| EBIT | ₹10,583.94 Cr | +23.3% | |
| Net profit | ₹1,783.29 Cr | +51.4% | |
| EPS | ₹3.44 | -48.6% | |
| EBIT margin | 25.61% |
P&L walk
Revenue grew 7.6% YoY on 10% NII growth; operating profit grew 23.3% YoY as opex rose only 1.3% YoY leading to 323bps margin expansion; PAT surged 51.4% YoY but includes a ₹5,680 Cr exceptional charge for NMC settlement.
Segments
Retail Banking revenue grew 6.8% YoY and segment profit grew 49% YoY, driving consolidated results; Treasury segment revenue fell 12% YoY but profit fell 54% YoY due to market volatility; Wholesale Banking revenue grew 8.8% YoY and profit grew 51.6% YoY.
Key positives
- NII grew 10% YoY, accelerating from 6% in Q4FY26.
- Operating profit grew 23.3% YoY on tight cost control (opex +1.3% only).
- GNPA improved 29bps YoY to 1.99%; NNPA improved 10bps YoY to 0.50%.
- Provisions fell 21% YoY, reflecting lower credit costs.
- PCR stood at 93.28%, providing strong buffer.
Key concerns
- NIM compressed 14bps YoY to 2.85%, squeezed by rising deposit costs.
- Exceptional NMC settlement charge of ₹5,680 Cr hit net profit severely.
- Other income fell 25.8% YoY on standalone basis (lower treasury gains).
- Domestic retail banking digital sub-segment remained loss-making at ₹376 Cr loss.
Research and educational content only. Not investment advice.