State-owned lenders Bank of Baroda (BoB) and Bank of India (BoI) reported improved financial performance for the fourth quarter of the fiscal year 2025-26, driven primarily by growth in net interest income and strengthened asset quality.

Bank of Baroda posted an 11.2 percent year-on-year increase in net profit to approximately ₹5,616 crore for Q4FY26. The rise was supported by an 8.7 percent growth in net interest income (NII), which reached around ₹12,494 crore. However, the bank’s non-interest income declined by 16.2 percent year-on-year to ₹3,967 crore. The net interest margin (NIM) contracted slightly to 2.89 percent compared to 2.98 percent in the same quarter last year. The credit cost increased to 0.76 percent amid a floating provision of about ₹1,500 crore during the quarter. For the full fiscal year, BoB recorded a 2.2 percent rise in net profit to about ₹20,021 crore.

Domestic advances rose 14.5 percent year-on-year to nearly ₹11.69 trillion at the end of March 2026. Growth was notable across key segments, with retail loans expanding by 17.9 percent to approximately ₹3.03 trillion, corporate loans rising 11.2 percent to ₹4.57 trillion, and MSME loans increasing 15.6 percent to around ₹1.60 trillion. Bank of Baroda plans to disburse over ₹12,000 crore under the recently launched Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 aimed at supporting the MSME sector. Domestic deposits grew 12.8 percent to about ₹14.01 trillion, though the share of current and savings account (CASA) deposits edged down to 38.90 percent from 39.97 percent a year earlier. Asset quality also improved, with the gross non-performing asset (GNPA) ratio declining to 1.89 percent as of March 31, 2026, from 2.26 percent a year ago, and the net NPA ratio falling to 0.45 percent.

Separately, Bank of India reported a 15 percent increase in net profit to ₹3,016 crore for Q4FY26, supported by an 11 percent rise in net interest income to ₹6,730 crore. Non-interest income decreased 6 percent to ₹3,210 crore, primarily due to lower treasury gains, with profit from the sale and revaluation of investments dropping significantly to ₹67 crore from ₹711 crore in the previous year. The bank’s net interest margin slightly decreased to 2.58 percent from 2.61 percent a year ago but showed a marginal improvement from the previous quarter.

Bank of India’s asset quality showed marked enhancement, with gross NPAs declining to ₹15,306 crore from ₹21,749 crore a year earlier, reducing the gross NPA ratio to 1.98 percent from 3.27 percent. Net NPAs also decreased to ₹4,250 crore, bringing the net NPA ratio down to 0.56 percent from 0.82 percent. The provision coverage ratio improved to 93.57 percent. The bank’s capital adequacy ratio strengthened to 18.01 percent, up from 17.77 percent. Global advances grew 15.8 percent year-on-year to ₹7.71 trillion, and global deposits rose 13.6 percent to ₹9.27 trillion. Bank of India’s managing director and chief executive officer, Rajneesh Karnatak, projected that the NIM guidance for FY27 would be in the range of 2.70 to 2.75 percent.

Both banks highlighted continuing efforts to support credit growth while maintaining asset quality, navigating challenges such as fluctuating non-interest income and managing provisions amid evolving regulatory guidelines.