BANKBARODA Q2 FY27 Results Analysis: PAT Jumps 36%, NIM Slips to 2.74%
BANKBARODA reported Q2 FY27 numbers with revenue of Rs. 41,966.05 Cr (+19.80% YoY) and PAT growth of +35.81% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 30, 2026 |
|---|---|
| Revenue (Q2) | Rs. 41,966.05 Cr (+19.80% YoY) |
| PAT (Q2) | Rs. 6,531.54 Cr (+35.81% YoY) |
| EBITDA margin | 27.24% (+561 bps YoY) |
| EPS (Q2) | Rs. 12.63 (+35.80% YoY) |
Quarter Snapshot
Bank of Baroda delivered its highest-ever quarterly PPOP (Rs.11,430 crore, +50.87% YoY) and PAT (Rs.6,531.54 crore, +35.81% YoY), beating its own guidance on credit growth, deposit growth, credit cost, slippage, ROA and operating profit. Asset quality improved to GNPA 1.78%/NNPA 0.37% with PCR at 94.65%, though NIM slipped to 2.74% (below the guidance band low end) and CASA ratio fell 205 bps YoY. Headline profitability is flattered by an unquantified NSE OFS gain in other income, while wholesale and retail segment results fell YoY — the full-year ROA guidance promised for the earnings call is the key open item.
Q2 FY27 Expectations vs Results
| Driver | What happened | Verdict |
|---|---|---|
| Advances "ahead of the 12–14% guidance for a second straight quarter" | +18.3% YoY | Played out |
| Deposits "ahead of the 10–12% guide" | +16.4% YoY | Played out |
| NIM "flat to mildly compressing"; "whether the 2.75–2.95% band holds" | 2.74% global (−3 bps QoQ) — compressed as expected but 1 bp below the band's low end; H1 2.76% within | Partially |
| Treasury "likely stays below the Rs.1,000–1,200 crore/quarter benchmark — partially masked by the NSE gain" | Other income Rs.6,880.72 crore, +95.76% YoY; treasury segment result +175.64% YoY — headline contradicted, and the masking agent (NSE net gain) is unquantified in the filing | Contradicted at headline level |
| NSE gross consideration "should surface in Q2 other income" | Note 14 confirms Rs.1,372.35 crore gross sold in the quarter | Played out |
| Credit cost "likely benign again" | 0.55% Q2 / 0.42% H1, below the <0.60% guide | Played out |
| "No fresh floating-provision announcement" | Balance unchanged at Rs.2,500 crore | Played out |
| ECL "a post-quarter cost narrative, not a Q2 P&L item" | No ECL provision in Q2 | Played out |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| Credit growth 12–14% FY27 | guided on the Q4 FY26 call, reiterated Q1 FY27 | global advances +18.3% YoY — ahead | On Track |
| Deposit growth 10–12% FY27 | same | global deposits +16.4% YoY — ahead | On Track |
| NIM 2.75–2.95% FY27 | same | Q2 global NIM 2.74%; H1 2.76% | On Track on H1; Q2 print 1 bp below the band's low end |
| Credit cost <0.60% FY27 | revised at Q3 FY26 call | 0.55% (Q2), 0.42% (H1) | Met |
| Slippage 1–1.25% FY27 | Q4 FY26 call | 0.69% (Q2), 0.67% (H1) | Met |
| ROA >1% in Q2–Q4 FY27 | Q1 FY27 call | 1.26% annualized | Met |
| ROE 15–16% FY27 | Q4 FY26 call | 19.28% in Q2 (+363 bps YoY) — one-off-flattered | On Track |
| Full-year FY27 ROA guidance | promised on the Q1 FY27 call for this call | not contained in the filing | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|---|---|
| GNPA % | 2.16 | 2.04 | 1.89 | 1.99 | 1.78 |
| NNPA % | 0.57 | 0.57 | 0.45 | 0.50 | 0.37 |
| PCR incl TWO % | 93.21 | 92.73 | 93.94 | 93.28 | 94.65 |
| NIM global % | 2.96 | 2.79 | 2.89 | 2.77 | 2.74 |
| ROA % | 1.07 | 1.09 | 1.15 | 0.25 | 1.26 |
| Credit cost % | 0.29 | 0.17 | 0.76 | 0.29 | 0.55 |
| Slippage % | 0.91 | 0.86 | 0.89 | 0.91 | 0.69 |
| CRAR % | 16.54 | 15.29 | 15.82 | 16.30 | 16.61 |
Key Investment Insights
Key Positives
- Standalone PAT of Rs.6,531.54 crore grew 35.81% YoY, the bank's highest-ever quarterly net profit
- PPOP of Rs.11,430.11 crore grew 50.87% YoY, ahead of management's Rs.7,500-8,000 crore/quarter normalized benchmark
- GNPA fell to 1.78% (from 2.16% YoY) and NNPA to 0.37% (from 0.57% YoY); PCR incl. TWO at 94.65%
- Global advances +18.3% YoY and global deposits +16.4% YoY, both ahead of FY27 guidance of 12-14% and 10-12% respectively
- Credit cost 0.55% (Q2) and 0.42% (H1), below the <0.60% guidance; slippage 0.69% vs 1-1.25% guided band
- ROA of 1.26% annualized met the >1% Q2-Q4 FY27 commitment; ROE 19.28% (+363 bps YoY)
- Cost-to-income fell to 42.58% from 51.02% in Q2FY26
- Provisions rise of +93.26% YoY is a write-off-passage effect (write-off provision +Rs.1,052 crore), not fresh stress provisioning; floating provision buffer unchanged at Rs.2,500 crore
Risk Factors
- Global NIM compressed to 2.74% from 2.96% YoY, 1 bp below the low end of the 2.75-2.95% guidance band
- Domestic CASA ratio fell to 36.37% from 38.42% YoY as CASA growth (10.4%) lagged deposit growth (16.6%); borrowings +25.19% YoY
- Wholesale Banking segment result fell 42.58% YoY and Retail Banking fell 19.56% YoY despite revenue growth — core-franchise profit compression masked by treasury
- Treasury segment result of Rs.6,120.44 crore (+175.64% YoY) carries the unquantified NSE OFS gain (Rs.1,372.35 crore gross), so clean run-rate profitability is not derivable
- H1 FY27 standalone PAT declined 16.48% YoY due to the Rs.5,680 crore NMC settlement exceptional; auditors carry an Emphasis of Matter on the note
- No fresh ECL-transition provision in Q2 despite management's prior ~Rs.12,500 crore / 110 bps CRAR impact estimate; floating-provision buffer not extended
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.