Bank of Baroda vs Bank of Maharashtra 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

Of 4 tracked promises, management 0 met, 0 close, 4 missed.

BA

Bank of Maharashtra

Q4 FY26 · Financial Services

Bank of Maharashtra delivered a strong Q4 FY26, with net profit surging 27% YoY to ₹7,019 crore, driven by robust loan growth of 22% YoY and stable NIM of 3.91% (full year). Asset quality improved further with GNPA at 1.45% (down 29bps YoY) and NNPA at 0.13%. Management met all 18-19 guidance parameters set at the start of the year. Key growth drivers included retail (home loans +29%, vehicle +56%, gold +53%) and corporate lending in renewable energy and infrastructure. The bank created a ₹200 crore geopolitical uncertainty provision proactively. Guidance for FY27 includes advances growth of 18%, NIM of 3.75%, and ROA of 1.80%. Risk: Prolonged West Asia crisis could stress MSME and agri portfolios, with impact visible from Q2.

Guidance read

Advances growth of 18% for FY27: Total business to grow 16-17%, with advances at 18% and deposits at 14-15%. NIM guidance of 3.75% for FY27: Net interest margin expected to be 3.75% for the full year. ROA guidance of 1.80% for FY27: Return on assets guided at 1.80%, up from 1.75% in FY26. GNPA to remain below 2%, NNPA below 0.25%: Asset quality guidance: gross NPA under 2%, net NPA under 0.25%, slippage below 1%.

Risk read

Key risks include West Asia geopolitical crisis impact — Prolonged conflict could stress MSME and agri portfolios due to crude price rise and inflation; impact expected from Q2.; Farm loan waiver implementation risk — Maharashtra government's KCC loan waiver (up to ₹2 lakh) may affect borrower behavior; bank estimates ₹2,000 crore exposure.; Tax rate normalization — Effective tax rate may rise from ~10% to 18-20% as unabsorbed losses are exhausted, impacting net profit growth.; Gold loan co-lending disruption — Transition to CLM1 model caused temporary halt in gold co-lending; book declined 70% QoQ, though resuming..

Promise ledger

Of 4 tracked promises, management 0 met, 0 close, 4 missed.