Shares of Bank of Baroda Ltd recovered from early losses on Monday after the state-run lender reported a 1.9 per cent year-on-year rise in net profit for the quarter ended June (Q1FY26), aided by treasury gains despite pressure on net interest margins (NIMs).

The stock declined as much as 2.33 per cent to Rs 237.70 in early trade but pared losses to trade at Rs 242.77, down 0.28 per cent on the NSE at 11:48 AM. The Nifty 50 was down 0.17 per cent at the same time.

Bank of Baroda Q1FY26 Results Highlights

Net Profit: Rs 4,541 crore, up 1.9 per cent YoY (vs Rs 4,460 crore YoY)

Net Interest Income (NII): Rs 11,435 crore, down 1.4 per cent YoY

Net Interest Margin (NIM – domestic): 2.91 per cent, down from 3.18 per cent

Slippages: Rs 3,476 crore vs Rs 2,873 crore (QoQ)

The lender reported 12.6 per cent growth in total advances to Rs 12.07 trillion, with retail loans up 17.5 per cent and home loans growing 16.5 per cent. Corporate lending rose 4.2 per cent YoY.

Asset Quality of Bank of Baroda

Gross NPA: 2.28 per cent, down from 2.88 per cent YoY

Net NPA: 0.60 per cent, down from 0.69 per cent YoY

Provision Coverage Ratio: 93.18 per cent

Capital Adequacy Ratio: 17.19 per cent; CET-1: 17.61 per cent

Brokerage Views on Bank of Baroda Post-Results

HSBC: Hold, Target Rs 240 (up from Rs 230)

Nomura: Neutral, Target Rs 240 (up from Rs 235)

CLSA: Accumulate, Target Rs 290 (up from Rs 270)

Jefferies: Hold, Target Rs 255 (up from Rs 245)

Bank of Baroda shares have been range-bound since June, with a 1.5 per cent year-to-date gain, underperforming the Nifty 50’s 5 per cent rise. The bank’s market capitalisation stands at Rs 1.26 trillion.