Bank of Baroda Navigates Profit Decline with Strategic Lending Focus

State-run Bank of Baroda announced an 8% drop in its net profit for the September quarter, largely due to softer core income growth and a high base impact. The lender's net interest income rose by 2.7% to Rs 11,954 crore, buoyed by a 12% increase in advances, even as the net interest margin squeezed to 2.96% from the previous year's 3.11%.

Despite the overall decline in total income to Rs 35,026 crore from Rs 35,445 crore in the last fiscal, Managing Director and CEO Debadatta Chand expressed confidence in achieving future targets. He highlighted expected NIM improvements and solid credit growth plans for FY26, particularly in corporate lending.

While the corporate loan book experienced a modest 3% growth, a pipeline worth Rs 40,000 crore remains, with another Rs 25,000 crore in discussions. The focus remains on maintaining NIMs without compromising growth, as retail, agriculture, and MSME loans drive diversification. Improvements in asset quality and strategic provisions signal preparedness for systemic changes.