Bank of Baroda Net Profit Drops 72% Due to Settlement

Bank of Baroda reported a 72% decline in net profit for the first quarter of FY27, with earnings falling to Rs 1,278 crore from Rs 4,541 crore in the previous corresponding quarter. The sharp decrease was driven by a one-time exceptional item of approximately Rs 5,680 million ($600 million) used for an out-of-court settlement with the joint administrators of the United Arab Emirates-based NMC Health.

Despite the net profit drop, the lender experienced growth in other core areas. Net interest income increased by 9.5% to Rs 12,524 crore. Global advances grew 17% to Rs 14.16 lakh crore, while global deposits rose 14% to Rs 16.33 lakh crore.

Asset quality showed year-on-year improvement as the net non-performing asset ratio decreased to 0.5% from 0.6%. However, the bank noted that bad-loan ratios rose on a sequential basis.