Bank of Baroda reported a significant 72% decline in its net profit for the quarter ended June 2026, falling to ₹1,278 crore from ₹4,541 crore in the same period last year. This decrease is largely attributed to a substantial one-time provision related to the NMC health case settlement.
The bank's profit was further impacted by a 26% reduction in other income, which decreased to ₹3,470 crore from ₹4,675 crore a year ago. This was due to a 60% fall in treasury income and a 20% decline in fee-based income. Despite these challenges, Bank of Baroda experienced robust loan growth, with global advances rising 17% to ₹14.16 lakh crore, driven by a 20% increase in MSME loans and an 18% growth in retail advances.
Net interest income also saw a 10% increase, reaching ₹12,524 crore in June 2026. The bank maintains a forecast of 12% to 14% credit growth for the year. CEO Debadatta Chand emphasized that the decision to settle the NMC case was made after careful commercial consideration, aiming to close a legacy case and focus on future growth.
“This decision was taken after assessing the stage of trial and negotiations in this case. It is a commercially prudent decision to close a legacy case based on the amount claimed from the bank. The decision to settle is based on evaluating the time, cost and legal uncertainties. It allows us to close a legacy case and focus on sustaining our growth.”
Debadatta Chand, CEO of Bank of Baroda
"This decision was taken after assessing the stage of trial and negotiations in this case. It is a commercially prudent decision to close a legacy case based on the amount claimed from the bank. The decision to settle is based on evaluating the time, cost and legal uncertainties. It allows us to close a legacy case and focus on sustaining our growth," said Debadatta Chand, CEO of Bank of Baroda.
The NMC case involved allegations against the bank for not adhering to due diligence and proper anti-money laundering (AML) and know your customer (KYC) processes. This settlement is part of the bank's strategy to resolve legacy issues and streamline its operations.
Background
The NMC case involved allegations against the bank for not adhering to due diligence and proper anti-money laundering (AML) and know your customer (KYC) processes. This settlement is part of the bank's strategy to resolve legacy issues and streamline its operations.
Looking ahead, Bank of Baroda aims to leverage its strong loan growth and improved net interest income to enhance its financial performance. The focus will remain on sustaining growth while managing risks associated with legacy cases.
