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

Scorecard data is being built as historical quarters are processed.

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

Scorecard data is being built as historical quarters are processed.