Synopsis:
Bank of Baroda jumped sharply after its financial results for this quarter bagged enthusiasm from different brokerages such as HSBC, Investec, and CITI.
The shares of this leading PSU bank are in focus after reporting a stellar financial performance. In this article, we will dive more into the details of its financials and the latest brokerage comments.
With a market capitalization of Rs 1,50,021 crore, the shares of Bank of Baroda Ltd made a day high of Rs 292.70 per share, up by 5 percent from its previous day closing price of Rs 278.30 per share. Over the past five years, the stock has delivered a robust return of 535 percent, outperforming NIFTY 50’s return of 110 percent.
Q2 Highlights
Bank of Baroda has reported a Net Interest Income of Rs 11,954 crore in Q2 FY26, a growth of 2.7 percent as compared to Rs 11,637 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 4.5 percent from Rs 11,435 crore.
Regarding its profitability, it reported a net profit of Rs 4,809 crore in Q2 FY26, a decline of 8 percent as compared to Rs 5,238 crore in Q2 FY25. However, on a quarter-on-quarter basis, it grew by 6 percent from Rs 4,541 crore.
Coming to different key financial metrics, its Net Interest Margin (NIM) declined by 15 bps to 2.96 percent in Q2 FY26 as compared to 3.11 percent in Q2 FY25. Also, its Cost to Income ratio grew significantly by 742 bps to 51.02 percent as compared to 43.60 percent in Q2 FY25.
Asset quality slightly improved during the same period; GNPA declined by 34 bps to 2.16 percent as compared to 2.50 percent in Q2 FY25. NNPA stands at 0.57 percent as compared to 0.60 percent in Q2 FY25, a decline of 3 bps.
It reported total advances of Rs 12,78,847 crore, which grew by 12 percent YoY and 6 percent QoQ, where 61.7 percent of its loan book is exposed to RAM (Retail, Agriculture, and MSME) and the remaining 38.3 percent to Corporate & others.
The bank deposits have increased by 9.3 percent to Rs 15,00,012 crore in Q2 FY26 as against Rs 13,72,614 crore in Q2 FY25. CASA deposits were Rs 4,88,660 crore, with current account deposits at Rs 80,312 crore and Savings Account deposits at Rs 4,08,348 crore. CASA deposits accounted for 38.42 percent of the total deposits as of September 30, 2025.
Analyst Comments
Leading brokerage house, CITI, has maintained a Buy rating and raised its target price to Rs 350 per share from Rs 310 earlier, signaling an upside of 26 percent from its previous day’s closing price of Rs 278.40 per share.
The brokerage firm cited that it was an excellent quarter for Bank of Baroda, with better results in almost every area. Two major positives were net interest margins from lending (helped by an IT refund) and low credit costs, which stayed at just 0.40 percent.
On the other hand, HSBC also maintained a Buy rating and raised its target price to Rs 340 per share, signaling an upside of 22 percent from its previous day’s closing price of Rs 278.40 per share.
HSBC cited that the bank’s strong loan growth, higher lending margins, and stable asset quality were the main positives this quarter. The brokerage expects the bank’s performance to stay strong and sees more gains ahead if asset quality improves further. It also increased its profit estimates for FY26–FY28 by 5–7 percent.
Investec, on the other hand, upgraded its rating from Hold to Buy and raised its target price to Rs 325 per share from Rs 250 earlier, signaling an upside of 17 percent from its previous day’s closing price of Rs 278.40 per share. The key rationale behind this re-rating is because of the bank’s strong performance in key areas such as return on assets (ROA), which was uplifted mainly by low credit cost and NII-led operating profit beat.
In conclusion, the bank’s overall performance has signaled a good buying opportunity according to multiple brokerages. However, one should do its own due diligence before investing in shares of any company.
Written by Satyajeet Mukherjee
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
