Bank of BarodaStrong Core Performance Despite NMC Settlement

Bank of Baroda reported a net profit of ₹1,278 crore in Q1 FY27 after absorbing a one-time USD 600 million NMC settlement charge debited to the profit and loss account.

Excluding this exceptional item, adjusted net profit stood at a robust ₹5,528 crore, demonstrating strong underlying earnings power. The bank exceeded its full-year guidance with global advances growing at 17.4% year-on-year against a 12-14% target, driven by retail advances at 18.4%, MSME at 20.3%, and agriculture at 18.7%. Deposits grew 13.8% year-on-year, surpassing the 10-12% guidance band. Asset quality reached multi-year best levels with GNPA at 1.99%, NNPA at 0.50%, and slippage ratio at 0.91%, beating guidance significantly.

Net interest margin stood at 2.77%, within the 2.75-2.95% guidance band. Capital adequacy remained strong at 16.3% post-settlement, with CET1 at 13.9%. Management maintained FY27 guidance for ROE at 15-16% while deferring full-year ROA guidance to Q2, citing geopolitical uncertainties. The NMC settlement was concluded without admission of liability, bringing closure to complex cross-border litigation.