• Q4 financial performance: Bank of Baroda reported its highest-ever quarterly net profit of ₹5,615 crore with NII rising 9% to ₹12,493 crore and gross NPA declining to 1.89%. For the full year, net profit crossed ₹20,000 crore and total business surpassed ₹30 lakh crore.
• Floating provision buffer: Elevated provisions were driven by the creation of a ₹1,500 crore floating provision to buffer the balance sheet, bringing total floating provisions to ₹2,500 crore. Excluding this buffer, the underlying credit cost stood at 0.32%.
• Margin and growth outlook: Net interest margin for FY27 is guided in the band of 2.75% to 2.95% due to sticky deposit costs. The bank targets loan growth of around 15% and deposit growth of 12% to 12.5%, while maintaining a return on assets above 1%.
• Capital raising plans: The bank plans to raise ₹6,000 crore via AT1 and Tier 2 bonds, alongside an enabling provision to raise up to ₹8,500 crore in equity capital through FY28. It also continues to issue infrastructure bonds to manage duration and liability profiles.
• Segment lending strategy: Retail, agriculture, and MSME portfolios are projected to expand by over 15%, with retail book growth expected around 20%. Corporate lending will prioritize core corporate and mid-corporate segments over lower-yielding PSU borrowers.