• Core financial performance: Net profit fell by around 72% due to an exceptional full and final court settlement of over ₹5,000 crore across UK and Abu Dhabi jurisdictions, without which net profit would have been ₹5,520 crore. Core business showed 17.4% advance growth, nearly 14% deposit growth, and a 9.5% increase in net interest income.
• Credit growth outlook: Bank of Baroda maintained a credit growth guidance of 12% to 14% amid broad-based demand in MSME (20%), agriculture (18% to 20%), retail (18.5%), and corporate (15.4%) segments. Management noted it will monitor potential geopolitical developments and monsoon progress before considering an upward revision.
• ECL implementation timeline: The parallel run for expected credit loss (ECL) frameworks will start in December ahead of the April 1, 2027 migration deadline. The estimated impact of around 110 basis points on capital and 15 to 20 basis points on credit cost will be easily absorbed by existing capital buffers.
• Vision 2030 strategy: The bank plans to double its balance sheet by 2030 while optimizing its cost-to-income ratio through digital transformation. Initiatives include expanding AI usage, redesigning physical branches to match long-term customer preferences, and repurposing branch staff for business sourcing.