• Margin and ROA: Bank of Baroda maintained its net interest margin guidance of 2.75% to 2.95%, supported by the repricing of non-MCLR corporate loans and cooled wholesale markets. Following a one-time overseas provision that pulled Q1 ROA below 1%, management expects quarterly ROA to surpass 1% from Q2 onwards.
• ECL capital impact: The expected ECL transition impact is around 110 bps on CRAR and 15–20 bps on credit cost, which will be buffered by ₹2,500 crore in floating provisions and strong CET1 capital of 13.9%. The bank also plans to raise ₹8,500 crore in equity by March 2028 alongside a ₹6,000 crore Tier 2 buffer.
• Overseas funding expansion: The bank has raised $650–$700 million in FCNR(B) deposits and expects to cross $2 billion by September. Its overseas borrowing limit was increased from $5 billion to $10 billion to fund international book growth and domestic swap opportunities.
• Credit growth guidance: Overall advances grew 17.4% year-on-year, led by 18–20% growth in retail, MSME, and agriculture segments, while corporate loan growth moderated to 15.4% due to seasonality and loan repricing. Full-year advance growth guidance remains retained at 12–14%.