Bank of Baroda vs Bank of India Q4 FY26

BA

Bank of Baroda

Q4 FY26 · Financial Services

Bank of Baroda reported a strong Q4 FY26 with net profit of ₹5,616 crore (up 11.2% YoY), the highest ever quarterly profit. Global business crossed ₹30.78 lakh crore, with advances growing 16.2% YoY driven by retail (17.9%), agriculture (20.7%), and MSME (15.6%). NIM improved to 2.89% (up 10 bps QoQ) aided by IT refunds, though management guided a conservative 2.75-2.95% for FY27 due to sticky deposit costs. Asset quality remained robust with GNPA at 1.89% and NNPA at 0.45%. The bank raised a ₹10,000 crore green infra bond and plans ₹14,500 crore capital raise (equity + AT1/Tier 2) over the medium term. Key risk: geopolitical headwinds could pressure liquidity and asset quality in the overseas book.

Guidance read

Loan growth guidance raised to 12-14% for FY27: Upsized from earlier 11-13% due to strong performance, subject to global headwinds. Deposit growth guidance raised to 10-12% for FY27: Upsized from 9-11% reflecting improved deposit mobilization. NIM guidance of 2.75-2.95% for FY27: Conservative range accounting for sticky deposit costs and volatile IT refunds. Capital raise plan of ₹14,500 crore (equity + AT1/Tier 2): Includes ₹8,500 crore equity by FY28 and ₹6,000 crore AT1/Tier 2 in FY27.

Risk read

Key risks include Sticky deposit costs pressuring NIM — Cost of deposits likely to remain elevated due to tight liquidity, limiting margin expansion.; Geopolitical impact on overseas book — Middle East exposure (~₹50-60k cr) and trade disruptions could stress asset quality, though currently benign.; ECL implementation uncertainty — Final guidelines may increase credit cost; management declined to quantify impact until full computation.; Aggressive auto loan growth risks — Long-tenor auto loans at competitive rates may face depreciation risk, though current stress is low..

Promise ledger

Scorecard data is being built as historical quarters are processed.

BA

Bank of India

Q4 FY26 · Financial Services

Bank of India reported a strong Q4 FY26 with net profit of ₹10,527 crore (up 14% YoY) driven by robust business growth and improved asset quality. Global business grew 14.6% to ₹16.98 lakh crore, with deposits up 13.6% and advances up 15.8%. Asset quality improved significantly: GNPA ratio fell 129 bps to 1.98% and NNPA to 0.56%. Management guided for 15-16% credit growth and 13-14% deposit growth in FY27, targeting domestic NIM of ~3% and ROA of 1%. Key risks include geopolitical headwinds impacting MSMEs and potential credit cost increase from ECL implementation (estimated 10 bps annual impact).

Guidance read

Credit growth guidance of 15-16% for FY27: Global advances expected to grow 15-16% in FY27, driven by RAM and mid-corporate segments. Deposit growth guidance of 13-14% for FY27: Global deposits targeted to grow 13-14% in FY27, with focus on CASA and retail term deposits. Domestic NIM target of ~3% by March 2027: Management aims to improve domestic NIM from 2.78% to near 3% by end of FY27 through better yield and lower cost of deposits. ROA target of 1% for FY27: Bank expects to achieve ROA of 1% for the full year FY27, up from 0.93% in FY26.

Risk read

Key risks include Geopolitical headwinds impacting credit quality — Rising crude prices, supply chain disruptions, and interest rate hikes may stress MSME and export-oriented sectors.; ECL implementation impact on credit cost — Transition to ECL guidelines from April 2027 may increase credit cost by ~10 bps annually, though management expects smooth transition.; CASA ratio decline and deposit cost pressure — CASA ratio fell to 37.64% from ~40% due to structural shift, potentially increasing cost of deposits if not reversed.; State PSU slippage risk — Three state PSUs in SMA category may slip into NPA if cash flows don't improve, though management is confident of recovery..

Promise ledger

Scorecard data is being built as historical quarters are processed.