Bank of Baroda shares jump 5% as investors cheer record quarterly profit

Shares of Bank of Baroda rose as much as 5.15% to ₹250.89 on Monday afternoon, as investors got their first full session to react to the state-run lender’s best-ever quarterly profit.

The stock hit its high at about 12:20 pm, even as the wider market was starting to give up some of its morning gains. It had closed 1.24% lower at ₹238.50 on Friday, the day the results came out.

A record quarter, with help from the NSE

The bank’s standalone profit for the September quarter rose 35.8% to ₹6,532 crore, and operating profit climbed 50.9% to a record ₹11,430 crore. A large part of the lift came from outside lending. The bank booked a cash profit of ₹1,340 crore from selling part of its stake in the National Stock Exchange, and other income nearly doubled to ₹6,881 crore.

Core business was steadier. Net interest income rose 9% to ₹13,026 crore, while the net interest margin narrowed to 2.74%. Gross bad loans fell to 1.78% of advances from 1.99% at the end of June, and loans grew 18.3%.

Higher growth target

Managing director and CEO Debadatta Chand said the bank had raised its loan growth guidance for 2026-27 to 13-15%, from 12-14%, after a strong first half. He said margins would stay within the guided band of 2.75% to 2.95% and should widen in the second half as recent RBI rate hikes pass through to loans.

The bank also set aside ₹1,600 crore in extra provisions during the quarter. Chand said it would need about ₹12,500 crore for the move to expected credit loss accounting from April next year, and already holds about ₹2,500 crore in excess provisions.