The Nifty PSU Bank index climbed over 2% on Monday, propelled by a sharp 3-5% rally in Bank of Baroda and Canara Bank shares after Q2 FY26 earnings, supportive news flow on policy and consolidation.
The share price of Bank of Baroda surged over 5% after the bank announced its Q2 results. It witnessed the sharpest intraday rise in the last 16 months, trading near its all-time high. The stock touched a 52-week high on Monday.
Bank of Baroda announced its financial performance for the quarter and half-year ended September 30, 2025, reporting consistent growth across profitability, margins, and advances.
The bank posted a net profit of ₹4,809 crore for Q2FY26, a 5.9% increase sequentially, while profit for H1FY26 stood at ₹9,351 crore.
The Operating Profit for Q2FY26 was ₹7,576 crore, taking the half-year total to ₹15,812 crore. Net Interest Income (NII) for the quarter rose 4.5% sequentially to ₹11,954 crore, while for H1FY26 it reached ₹23,388 crore. Non-interest income for the quarter stood at ₹3,515 crore, with the half-year figure at ₹8,189 crore, reflecting 7% year-on-year growth.
Operating expenses remained contained at ₹7,893 crore for Q2FY26, showing a 7.7% YoY rise, and ₹15,765 crore for the half year. The Return on Assets (ROA) remained above 1%, standing at 1.07% for the quarter and 1.04% for H1FY26. Return on Equity (ROE) improved to 15.37% in Q2FY26, up 32 basis points sequentially, while it stood at 14.95% for H1FY26.
The Global Net Interest Margin (NIM) improved by 5 basis points sequentially to 2.96%, while the Domestic NIM rose by 4 bps to 3.10%. The cost of deposits stood at 4.91%, down 21 bps YoY and 14 bps QoQ, indicating effective cost management.
The bank’s asset quality continued to strengthen. Gross NPA ratio improved to 2.16% in Q2FY26, down from 2.50% a year earlier, and the Net NPA ratio declined to 0.57%. The Provision Coverage Ratio (PCR) remained strong at 93.21% including write-offs, and 74.13% without write-offs.
Slippage ratio fell to 0.91%, improving 16 bps YoY and 25 bps QoQ, while the credit cost stayed below 0.75%, at 0.29% for Q2FY26 and 0.42% for H1FY26, indicating controlled provisioning levels.
The bank’s Capital Adequacy Ratio (CRAR) was 16.54% as of September 2025, with Tier-I capital at 14.15% (CET-1: 13.36%, AT1: 0.79%) and Tier-II capital at 2.39%. On a consolidated basis, CRAR stood at 16.97%, and CET-1 at 13.88%.
On the business front, Domestic Advances grew 11.5% YoY to ₹10.46 lakh crore, while Global Advances rose 11.9% YoY to ₹12.78 lakh crore. Domestic Deposits increased 9.7% YoY to ₹12.72 lakh crore, and Global Deposits expanded 9.3% YoY to ₹15 lakh crore.
The bank’s Retail Advances portfolio showed strong traction, growing 17.6% YoY, led by:
The RAM (Retail, Agri, MSME) segment now accounts for 61.7% of total advances, up 310 bps YoY, with a 17.4% growth in the segment. The Agriculture loan book grew 17.4% YoY to ₹1.70 lakh crore, and the MSME portfolio increased 13.9% YoY to ₹1.44 lakh crore.
Corporate Advances recorded 3% YoY growth, reaching ₹4 lakh crore, reflecting steady credit demand in the corporate segment.
On Monday Bank of Baroda share price jumped over 5% as the bank announced its Q2 results. The stock price hit a 52-week high. As of 12:41 am IST, the stock price was trading at ₹291.60 per share, up by 4.72%.
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