Bank of Baroda (BSE: 532134, NSE: BANKBARODA) — Business Report / Investor Feed
Business & Distribution Evaluation — Bank of Baroda (BSE: 532134)
1. Business Identity
Bank of Baroda (BoB) is a public sector bank (PSB) providing banking and financial services to over 140 million customers across India and 15 countries [4] [38]. Established on July 20, 1908 in Vadodara, Gujarat [81], and nationalised in 1969, BoB is the second largest PSB in India by total business, with a market share of 6.6% in advances and 6.5% in deposits [66].
| Parameter | Detail |
|---|---|
| Sector classification | Financial Services → Banks → Public Sector Bank [4] |
| Promoter / majority owner | Government of India — 63.97% equity stake [as on Dec 2024] [3] [66] |
| Registered office | Baroda House, Mandvi, Vadodara 390001, Gujarat [81] |
| Corporate office | Baroda Corporate Centre, BKC, Mumbai [81] |
| Key corporate action | Amalgamation of Vijaya Bank and Dena Bank with BoB effective April 1, 2019 [5] |
| Total business [FY26] | ₹30,78,366 crore (crossed ₹30 lakh crore landmark) [29] [88] |
| Total business [FY25] | ₹27,02,496 crore [6] [88] |
| Employees [FY26] | 76,693 [70] |
| Employees [FY25] | 75,008 [1] |
| Awards | "The Banker — Bank of the Year 2025 — India" [13] [93]; 4 of 7 IBA Technology Awards; Best AI/ML Bank 2025 (4th consecutive year) [51]; Runner-up — 2025 Gartner APAC Eye on AI Innovation Award [97] |
| Systemic importance | "High systemic importance; large pan-India franchise" — India Ratings [10] |
| EASE Reform Ranking | 2nd among all PSBs [9] |
| Presence [FY26] | 35 states/UTs domestically; 15 countries internationally [41] [75] |
| Credit Ratings | Moody's Baa3/Stable; Fitch BBB-/Stable; CRISIL AAA/Stable; ICRA AAA/Stable; India Ratings IND AAA/Stable [57] |
| LCR | ~127% [FY26] [87] |
Consolidated group structure [56] [14] [34] [98]:
| Entity Type | Key Entities | Holding (%) [FY26] | Key FY26 Metrics |
|---|---|---|---|
| Domestic Banking Subsidiary | The Nainital Bank Ltd | 98.62% | 176 branches; business ₹14,118 Cr; PAT ₹63.24 Cr [21] |
| Credit Cards | BOBCARD Ltd | 100% | 31.76 lakh active cards; spends ₹41,510 Cr [79] |
| Capital Markets | BOB Capital Markets Ltd | 100% | 3 offices; 3,44,309 customers; net loss ₹(15.27) Cr [53] |
| Asset Management | Baroda BNP Paribas AMC | 50.10% | AAUM ₹59,459 Cr; PAT ₹84.50 Cr [85] [48] |
| Life Insurance | IndiaFirst Life Insurance Co. | 64.92% | AUM ₹34,403 Cr; GWP ₹8,019 Cr; PAT ₹127 Cr [77] |
| Shared Services | Baroda Global Shared Services Ltd | 100% | 4 offices; 4,374 staff; ISO certified [34] [43] |
| Technology | Baroda Sun Technologies Ltd | 100% | 2 offices [34] |
| Primary Dealer (New FY26) | BOB Securities & Giltedge Ltd | 100% | Incorporated 13.03.2026; capital ₹2,000 Cr authorised [24] [98] |
| Infrastructure Lending (JV) | India Infradebt Ltd | 40.99% | Loan book ₹30,817 Cr; PAT ₹614 Cr; ROE 15.2% [34] [37] |
| RRB Associates (post-amalgamation) | UP Gramin Bank, Gujarat Gramin Bank | 35% each | Aggregate business ₹2,78,228 Cr (+7.1% YoY); combined PAT ₹1,242 Cr [68] |
| Overseas Subsidiaries | Botswana (100%), Kenya (86.7%), Uganda (80%), Guyana (100%), UK, Tanzania, New Zealand [98] | Various | 45 subsidiary branches across 7 countries [75] [100] |
Note on RRBs: Baroda Gujarat Gramin Bank was amalgamated into 'Gujarat Gramin Bank' and Baroda UP Bank into 'Uttar Pradesh Gramin Bank' from 01.05.2025. Baroda Rajasthan Kshetriya Gramin Bank was amalgamated into 'Rajasthan Gramin Bank' (sponsor: SBI) from 01.05.2025 [98].
Exited entity: India International Bank (Malaysia) Bhd — exited up to 05.11.2025 [98].
2. Revenue Architecture
Revenue Model
BoB operates an interest-spread model supplemented by fee-based income, treasury gains, recovery income, and third-party product distribution commissions. Interest on advances (₹95,942 Cr [FY26]) is the dominant revenue line [50].
Income Statement Summary
| Metric (₹ Cr) | FY25 | FY26 | FY26 YoY (%) |
|---|---|---|---|
| Interest on Advances | 93,051 | 95,942 | 3.1 |
| Interest on Investments | 25,949 | 25,068 | (3.4) |
| Other Interest Income | 3,301 | 5,983 | 81.3 |
| Total Interest Income | 1,22,301 | 1,26,994 | 3.8 |
| Total Interest Expenses | 75,783 | 79,311 | 4.7 |
| Net Interest Income (NII) | 46,518 | 47,682 | 2.5 |
| Fee-based Income | 7,159 | 7,212 | 0.7 |
| Treasury Income | 3,589 | 4,436 | 23.6 |
| Other Non-Interest Income | 5,039 | 4,109 | (18.5) |
| Total Non-Interest Income | 15,788 | 15,757 | (0.2) |
| Operating Income | 62,306 | 63,439 | 1.8 |
| Employee Expenses | 16,608 | 15,741 | (5.2) |
| Other Operating Expenses | 13,264 | 15,439 | 16.4 |
| Total Operating Expenses | 29,871 | 31,180 | 4.4 |
| Operating Profit | 32,435 | 32,259 | (0.5) |
| Provisions for NPAs & Bad Debts | 5,170 | 5,694 | 10.1 |
| Provision for Standard Advances | 419 | 1,207 | 188.1 |
| Other Provisions | 390 | 249 | — |
| Total Provisions (excl. tax) | 5,980 | 7,149 | 19.6 |
| Profit Before Tax | 26,454 | 25,110 | (5.1) |
| Provision for Tax | 6,873 | 5,089 | (26.0) |
| Net Profit | 19,581 | 20,021 | 2.2 |
Key observations:
- Total interest income growth of 3.8% lagged interest expense growth of 4.7%, compressing NII growth to just 2.5% [99].
- Non-interest income was flat (-0.2%) as recovery from TWO declined 28.2% (₹4,767 Cr → ₹3,425 Cr) even as treasury income rose 23.6% [82].
- Employee expenses declined 5.2% (₹16,608 Cr → ₹15,741 Cr) despite adding 1,685 employees, while other operating expenses surged 16.4% (₹13,264 Cr → ₹15,439 Cr), reflecting increased technology and infrastructure spend [99].
- Provision for standard advances nearly tripled (₹419 Cr → ₹1,207 Cr), indicating proactive provisioning including higher floating provisions [99] [87].
- PBT declined 5.1% despite PAT growing 2.2%, thanks to a 26% reduction in tax provision [99].
- Q4 FY26 showed improvement — NII up 8.7% YoY and operating profit up 11.5% YoY — partially reversing weakness seen in 9M FY26 [88] [93].
The divergence between interest income growth (3.8%) and interest expense growth (4.7%) signals asymmetric repricing — advances reprice downward faster as rates ease, while the deposit book, skewed toward term deposits with fixed tenors, reprices with a lag. This structural timing mismatch compressed NII growth to just 2.5% and will likely persist until the rate-cut cycle is fully absorbed by the liability side.
Non-Interest Income Breakdown
| Component (₹ Cr) | FY25 | FY26 | YoY (%) |
|---|---|---|---|
| Commission, Exchange, Brokerage | 3,366 | 3,334 | (0.9) |
| Incidental Charges | 1,406 | 1,242 | (11.7) |
| Forex Income | 217 | 232 | 6.9 |
| Other Miscellaneous Income | 2,170 | 2,404 | 10.8 |
| Fee-based Income | 7,159 | 7,212 | 0.7 |
| Trading Gains (Sale of Investments) | 2,266 | 3,891 | 71.7 |
| Revaluation of Investments | 471 | (847) | — |
| Profit on Exchange Transactions | 852 | 1,392 | 63.4 |
| Treasury Income | 3,589 | 4,436 | 23.6 |
| Dividend Income | 248 | 631 | — |
| Recovery from TWO | 4,767 | 3,425 | (28.2) |
| Other Income | 24 | 53 | — |
| Total Non-Interest Income | 15,788 | 15,757 | (0.2) |
Source: [82]
Third-Party Product Distribution Income
| Nature of Income (₹ Cr) | FY25 | FY26 |
|---|---|---|
| Selling life insurance policies | 255.59 | 259.93 |
| Selling non-life insurance policies | 86.42 | 92.29 |
| PMJJBY | 10.31 | 12.93 |
| PMSBY | 3.25 | 3.78 |
| Selling mutual fund products | 143.70 | 142.52 |
| PMS/AIF products | 1.31 | 1.15 |
| UIDAI-Aadhaar | 21.64 | 24.48 |
| Atal Pension Yojana | 14.97 | 16.42 |
Source: [90]
Combined third-party distribution income was approximately ₹553 Cr [FY26], with life insurance marginally growing (+1.7%) and mutual fund income staying essentially flat (-0.8%) [90].
Standalone Segment Revenue & Results (S)
Note: Wholesale Banking segment result fell ~38%, while Retail Banking segment result surged ~46%, reflecting the successful retailisation strategy [30] [86].
The dramatic inversion in segment profitability — Wholesale Banking result falling 38% while Retail Banking surged 46% — marks a structural shift in BoB's earnings engine. Retail is now the largest profit contributor, reducing dependence on lumpy corporate credit outcomes and improving earnings predictability.
Segment-wise Turnover Contribution [FY26]
Revenue Mix by Geography (Standalone)
| Geography | FY25 Revenue (₹ Cr) | FY25 % | FY26 Revenue (₹ Cr) | FY26 % |
|---|---|---|---|---|
| Domestic | 1,22,808 | 88.9% | 1,26,946 | 88.9% |
| International | 15,281 | 11.1% | 15,805 | 11.1% |
| Total | 1,38,089 | 100% | 1,42,751 | 100% |
International business (net) from overseas branches totalled ₹5,05,017 Cr [FY26], constituting 16.5% of global business [75] [100].
Segment Assets [FY26] (S)
Source: [86]
Retail banking segment assets grew the fastest (+17.3%), consistent with the retailisation thrust.
Pricing Mechanism & Interest Spread Trends
Key trend: NIMs compressed across all geographies. Domestic NIM fell 21 bps to 3.04%; international NIM fell 20 bps to 1.74%. Per ICRA: "interest income grew at a slower pace due to quicker repricing of advances at lower yields. In contrast, deposit costs remained elevated as they reprice with a lag" [47] [66]. Cost-to-income ratio deteriorated intra-year, reaching 52.10% in Q3 FY26 (vs 49.53% in Q3 FY25) [93], before improving in Q4 to bring full-year to 49.15%.
Profitability Summary
Source: [39] [49] [70] [87] [88]
Slippage ratio discrepancy: The Annual Report/MD&A [87] reports slippage ratio of 0.72% for FY26, while an earlier investor presentation [39] indicated 0.86%. The MD&A figure of 0.72% is considered more authoritative as it appears in the final signed annual report.
Net profit crossed ₹20,000 Cr for the first time [FY26], with highest-ever quarterly profit of ₹5,616 Cr in Q4 FY26 [29] [88]. However, ROE and ROAA trended downward as capital base expanded (BV +12.7% YoY) while profit grew only 2.2%. ROA has remained continuously above 1% [87].
PAT crossed ₹20,000 Cr for the first time, yet ROE declined from 18.95% to 15.39% over two years — a classic case of capital base expanding faster than earnings. With book value growing 12.7% YoY against just 2.2% profit growth, sustaining ROE above 15% will require either meaningfully higher profit growth or more aggressive capital return via dividends and buybacks.
3. Product & Service Portfolio
Core Lending Portfolio — Advances Mix
RAM (Retail + Agri + MSME) share: 61.0% of gross domestic credit [FY26] vs 59.8% [FY25] [87]. The bank "continued to focus on retailisation of its loan portfolio by strengthening the RAM segments" [87].
Gold loan was the standout performer — total gold loan portfolio (excl. TWO) surged 52.8% to ₹97,745 Cr [FY26]; GNPA on gold loans was just 0.12% [26] [40].
PM Suryaghar Yojana: ₹1,555 Cr [FY26] vs ₹288 Cr [FY25] — 440% YoY growth; 1.25 lakh cumulative sanctions; 2nd position after SBI [16] [76].
Digital Lending Platform [FY26]
70+ digital lending journeys live across Retail, Agriculture and MSME segments. The platform is integrated with RBI's Unified Lending Interface (ULI), 20+ Fintechs, and has 100+ digital integrations for verification and authentication [51].
Cumulative digital lending: 31+ lakh customers sanctioned and disbursed ₹56,000+ Cr of digital loans [51].
Key digital loan products: bob Insta Personal Loan, Digital Auto Loan (penetration surged from 3.33% [FY25] to 16.3% [FY26], reaching 31% in Mar'26), Digital Gold Loan, Digital BKCC, Digi Tractor Loan, Digital PM Suryaghar Yojana, PM Vishwakarma, Digital Two-Wheeler Loan [51] [27].
MSME Focus [FY26]
MSME portfolio (incl. pool) rose to ₹1,64,419 Cr [74]. Key initiatives [20] [62] [91]:
- 363 dedicated MSME branches (up from 350) contributing 27% of MSME book with 27.8% YoY growth
- 20 SME branches contributing 8.5% of SME book with 40.6% YoY growth
- 4 Mid-Corporate Clusters at Delhi, Chennai, Mumbai, Kolkata
- TReDS: 104% YoY growth; Supply Chain Finance: 65.2% growth; BPP/LAP: 41.4% growth
- MSME GNPA improved by 237 bps to 5.14%; SCF & TReDS NPA near-zero (<0.2%)
- 'Tejas' Platform for digitalisation of MSME loan processing [62]
- Baroda Mahila Swavalamban Scheme — institutional credit to women entrepreneurs with competitive rates, relaxed margin norms, and reduced collateral [91]
- bob Earth Circular Economy Scheme (MSE SPICE) in association with SIDBI & MoMSME [91]
Corporate Banking [FY26]
Serviced through 34 specialized CFS & Mid Corporate Branches managing approximately 95% of total standard corporate credit [62]. Credit rating distribution of corporate portfolio (advances >₹50 Cr): A & above: 96% [FY26] vs 95% [FY25] [62]. Infra Power — Renewable Energy identified as 'Champion Sector' with 60% YoY growth [54].
Liability Products — Deposit Mix
CASA ratio trajectory: Domestic CASA: 41.03% [FY24] → 39.97% [FY25] → 38.90% [FY26]. Global CASA: 38.53% [FY24] → 37.82% [FY25] → 37.20% [FY26] [59]. Bulk deposits grew 25.6% — the fastest growing deposit category — indicating reliance on costlier wholesale funding to support credit growth.
The simultaneous decline in CASA ratio (37.20%, down 133 bps over two years) and rise in Credit-Deposit ratio to 91.65% signals a funding quality concern. With credit growing faster than deposits and the incremental deposit mix tilting toward costlier bulk funding (+25.6%), the bank faces a structural headwind to NIM recovery even as policy rates ease.
Subsidiary & Cross-Sell Products [FY26]
| Subsidiary / Product | Key Metrics [FY26] | YoY Growth |
|---|---|---|
| BOBCARD (Credit Cards) | 31.76 lakh active cards [Mar'26]; Spends ₹41,510 Cr; ENR ₹6,323 Cr; Ranked 8th by active cards (RBI) [79] [60] | Spends +14.5%; Cards +4.3% |
| Baroda BNP Paribas AMC | AAUM ₹59,459 Cr; GIFT City FME AUM ₹4,852 Cr; Revenue ₹247.81 Cr; PAT ₹84.50 Cr [85] [48] | AAUM +25.4%; Revenue +22.5%; PAT +51.9% |
| IndiaFirst Life Insurance | AUM ₹34,403 Cr; GWP ₹8,019 Cr; NB GWP ₹3,508 Cr; PAT ₹127 Cr; 12th rank among private insurers [77] [79] | AUM +11.1%; GWP +11.1% |
| India Infradebt Ltd (JV) | Loan book ₹30,817 Cr; Net Profit ₹614 Cr; ROE 15.2% [34] [37] | Advances +20.4%; PBT +18.4% |
| Nainital Bank | Total business ₹14,118 Cr; 176 branches; Net profit ₹63.24 Cr [21] | Business +6.8%; PAT +26.4% |
| BOB Capital Markets | Gross Revenue ₹42.23 Cr; Net loss ₹(15.27) Cr; Customer base 3,44,309 (+8.5%) [53] [37] | Revenue -13.9% |
| BGSSL (Shared Services) | ₹18,753 Cr sourced via DST; PBT ₹21.15 Cr [37] [31] | DST sourcing +32% approx |
| Wealth Management | Fee income ~₹508 Cr; Investment AUM ~₹16,750 Cr; Life insurance income ~₹268 Cr [69] [73] | SmartInvest: ~50% value growth, ~74% transaction growth |
BOBCARD profitability discrepancy: The Annual Report [60] reports net profit/(loss) of ₹(0.36) Cr for FY26, while the Investor Presentation [79] shows net profit of ₹27.30 Cr. The Annual Report figure includes BOBCARD Ltd entity-level results while the Investor Presentation may reflect a different accounting cut or include intercompany adjustments.
Specialty / Emerging Products [FY26]
- Renewable energy financing: Outstanding ₹30,371 Cr; 60% YoY growth; MoU with IREDA for co-lending; Finance Asia Award for Best Project Finance Deal (Green Hydrogen — JSW Energy) [45] [54]
- Green products: bob Green Wheels (EV car financing — ₹770 Cr in 7 months); bob Green Home Loans; bob Green Krishi; bob Earth Green Deposits; bob Earth Circular Economy Scheme (MSE SPICE) with SIDBI [27] [58] [76] [91]
- bob Parivar: Premium customer segmentation — Rise, Shine, Sparkle tiers [42]
- ESG AMC Fund: ESG Best-in-Class Strategy Fund NFO mobilised ₹640.35 Cr through 17,351 investor portfolios [48]
- Inclusive products: bob inSIGHT Braille Debit Card (specially designed for visually impaired customers with raised tactile markers); bob Bhoomi RuPay Select (recycled PVC) [65] [96]
- Gen AI: Virtual Front Office (VFO) with AI-powered 3D avatar; bob SAMVAD multilingual AI platform enabling real-time customer interactions in regional Indian languages; SmartInvest AI conversational chatbot for wealth decisions [65] [69] [97]
4. Value Chain Position
BoB sits as a full-service financial intermediary:
Depositors / Capital Markets → BoB (Intermediary) → Borrowers (Corporate, Retail, Agri, MSME)
| Element | Detail |
|---|---|
| Key inputs | Customer deposits (₹16.48 lakh Cr [FY26]); Avg interest-bearing liabilities ₹15,85,131 Cr [FY26] [49] |
| Value addition | Credit underwriting, maturity transformation, risk management, payment services, distribution of third-party financial products (~₹553 Cr income [FY26] [90]), wealth management |
| Key outputs | Loans (₹14.30 lakh Cr [FY26]); investment book (₹3,72,318 Cr domestic) [78]; fee-based services |
| Integration direction | Forward — insurance (IndiaFirst Life, 64.9%), AMC (Baroda BNP Paribas, 50.1%), credit cards (BOBCARD, 100%), capital markets (BOBCAPS, 100%), primary dealer (BOB Securities & Giltedge, 100% — new FY26 [98]), shared services (BGSSL, 100%), infrastructure lending (India Infradebt, 41%) [56] [24] |
| Supplier concentration | Diversified — 140M+ customer deposit base; top 20 depositors: 4.39% [FY25] of global deposits [7]; retail deposits ~70%+ of domestic deposits [11] |
| Credit-Deposit Ratio | 82.43% [FY23] → 86.34% [FY24] → 88.56% [FY25] → 91.65% [FY26] [39] |
| Cost of funds | Average cost of fund: 5.00%; Yield of fund: 7.69% [FY26] [49] |
| Treasury | Investment book ₹3,72,318 Cr [FY26]; SLR share 82.12%; Profit on sale of investments ₹3,839.49 Cr; Forex earnings ₹882.06 Cr [78] |
| Government relationships | Fee income ₹95.56 Cr [FY26]; Government CASA ₹66,926 Cr; Lead Bank in 73 districts; SLBC convener in 3 states [78] [71] |
5. Distribution Architecture
Branch & Physical Network
| Channel | FY24 | FY25 | FY26 |
|---|---|---|---|
| Domestic branches | 8,282 | 8,424 | 8,648 |
| — Metro | — | 1,815 (21.6%) | 1,866 (21.6%) |
| — Urban | — | 1,502 (17.8%) | 1,536 (17.8%) |
| — Semi-Urban | — | 2,179 (25.9%) | 2,260 (26.1%) |
| — Rural | — | 2,928 (34.8%) | 2,986 (34.5%) |
| Rural + Semi-Urban share | — | 60.6% | 60.7% |
| Global branches (incl. overseas) | 8,282 | 8,463 | 8,683 [70] |
| Overseas offices (incl. subsidiary branches) | 91 | 84 | 80 (35 own + 45 subsidiary) [75] [100] |
| Countries | — | 17 | 15 |
| ATMs | — | 9,316 | 9,538 |
| Cash Recyclers | — | 1,671 | 2,059 |
| Self-Service Passbook Printers | — | 4,974 | 8,382 |
| DBUs | — | 18 | 18 |
| Phygital Branches | — | 9 | 30 |
| Digital Service Outlets | — | 48 | 48 |
| Currency Chests | — | — | 135 |
| Total Digital Touchpoints | — | 16,000+ | 20,057 |
| National offices (non-branch) | — | — | 271 |
Branch expansion FY26: 229 branches added (5 merged), net addition 224 [17]. The international presence spans major financial centres of New York, London, Dubai, Singapore and Australia, plus GIFT City IBU (treated as an offshore banking unit) [75] [100]. The bank has been strategically rationalising its overseas presence — "focused on rebalancing the portfolio with a view to manage risks, shed low-yield assets and increase profitability" [100]. India International Bank (Malaysia) Bhd was exited up to 05.11.2025 [98].
ATMs feature Green PIN Generation, NEFT, Cash on Mobile, and Interoperable Card-less Cash Withdrawal (UPI ATM). New FY26 initiatives include UPI Interoperable Cash Deposit on CRMs, Dynamic HTML screens, and Re-KYC via ATM [92].
Digital discoverability: Under the Location Management Project, the bank activated 8,500+ Google My Business (GMB) pages and 8,488 ATM/CR pages live [94] [63].
Business Correspondent Network [FY26]
| Metric | FY26 |
|---|---|
| Total BCs | 50,660 [68] [95] |
| BCs in rural areas | 36,109 [61] |
| Financial Literacy Centres (FLCCs) | 88 [61] [91] |
| RSETIs (Rural Self Employment Training) | 69 districts [61] |
Industry firsts at BC Points [FY26]: Re-KYC, Inoperative/Dormant Account Activation, and CKYCR Integration [68] [95].
Productivity Metrics
Source: [70]
Business per branch and per employee rose to record highs. However, net profit per employee plateaued at ₹26.11 lakh, while gross profit per employee declined — reflecting NIM and operating profit compression in FY26.
Digital Distribution
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| bob World activated users (lacs) | ~306 | 327 | 352 [52] |
| bob World financial transactions (Cr) | — | — | 11.82 [52] |
| bob World non-financial transactions (Cr) | — | — | 228.08 [52] |
| Total digital transactions (Cr) | — | 1,301.90 | 1,577.33 [44] |
| Transactions done digitally (%) | — | 95 | 97 [44] |
| Internet banking users (lakh) | — | 122.05 | 131.82 [89] [92] |
| Digital lending: cumulative sanctions | — | — | 31+ lakh customers; ₹56,000+ Cr [51] |
| Digital lending journeys live | — | — | 70+ [51] |
| New SA acquisition digitally (%) | — | 92 | 79 [44] |
| New CA acquisition digitally (%) | — | 91 | 94 [44] |
| Website visits [FY26] | — | — | 116.8 million; 58.9 million users [63] [94] |
| Domain Authority | — | 81 | 86 [63] [94] |
The bank's corporate website was migrated to the bank.in domain in September 2025, successfully recovering organic visibility and driving the significant traffic increase [94].
WhatsApp Banking — exponential growth:
81.14 lakh new registrations in FY26 [23].
BOB e Pay (UPI App): Relaunched with new UI; 14.79 lakh new users onboarded on UPI platform in FY26 [89] [92].
Merchant & Payment Infrastructure [FY26]
| Metric | FY25 | FY26 | YoY |
|---|---|---|---|
| UPI QR Merchant Base (lakh) | 25.48 | 33.12 | +30% |
| Merchant UPI QR Transactions (Cr) | — | 29.70 | — |
| Merchant UPI QR Value (₹ Cr) | — | 63,741 | — |
| Sound Box Devices (lakh) | 1.04 | 2.32 | +123% |
| POS Terminals | 52,652 | 61,088 | +16% |
| POS Turnover (₹ Cr) | 7,790 | 8,226 | +5.6% |
| POS CASA inflows (₹ Cr) | 2,552 | 3,111 | +22% |
| FASTag Base (lakh) | — | 13.15 | — |
| FASTag issued in FY26 (lakh) | — | 0.94 | — |
| FASTag toll transactions processed (Cr) [FY26] | — | 4.41 | — |
| FASTag toll value processed (₹ Cr) [FY26] | — | 523.83 | — |
| Debit Card Base (Cr) | — | 8.76 | — |
| BBPS Transactions (Cr) | — | 1.85 | — |
| BBPS Value (₹ Cr) | — | 15,075 | — |
| Active Billers on BBPS | — | 37 | — |
| IPG Merchants (bob World Merchant Gateway) | ~7,000 est. | 10,000+ | +41% |
| IPG Aggregators/Master Merchants | — | 12 | — |
| IPG Merchants Onboarded in FY26 | — | 2,914 | — |
| IPG Merchant CASA Balance (₹ Cr) | 3,566 | 4,600 | +29% |
Source: [52] [55] [18] [89] [92] [96]
The bob World Merchant Gateway supports Debit/Credit cards, Net Banking, UPI, Wallet, AEPS, Aadhaar Pay, QR Code, and offline NEFT/RTGS options [89] [92]. The bank has partnered with 14 popular merchants in FY26 for promotional campaigns to boost debit card usage in e-commerce and POS transactions [96].
NPCI Rankings [Q4 FY26]: UPI Autopay 3rd; IMPS Beneficiary 3rd; UPI Remittance 3rd; UPI Beneficiary 5th; RuPay Card Issuance 1st among PSBs [44] [68] [95].
Specialized Distribution Networks [FY26]
| Network | Scale | Function |
|---|---|---|
| Gold Loan Branches | 6,271 (up from 6,129) | Avg gold loan per branch: ₹15.57 Cr (vs ₹10.44 Cr FY25) [26] |
| MSME Dedicated Branches | 363 + 20 SME + 4 Mid-Corp Clusters | 27% of MSME book; 27.8% YoY growth [20] [62] |
| CFS & Mid-Corporate Branches | 34 | ~95% of standard corporate credit portfolio [62] |
| RACPCs (Retail Processing) | 119 | 44.91% (₹53,286 Cr) of retail sanctions [27] |
| Retail Thrust Branches | 2,500 | Identified for focused retail lending [27] |
| Z-CAMPs / R-CAMPs (Agriculture) | 27 Zonal + 17 Regional | Sanctioned ₹5,734 Cr in FY26 [25] |
Contact Centre [FY26]
- 1.60 lakh avg inbound calls/day; 1.29 lakh calls/day responded via IVR; 80.10% calls handled on IVR [67]
- 1.19 lakh outbound calls/day for sales and surveys [67]
- Emergency services to 6 overseas territories; AI-based Speech Analytics, AURA quality tool [67]
- Specialized desks: NRI/HNI, BC Complaints, VRM Shine, Staff Help, Senior Citizens, Female Help, PwD [67]
- 96.1% grievances resolved within pre-defined TAT [67]
Financial Inclusion [FY26]
| Metric | FY25 | FY26 | YoY |
|---|---|---|---|
| PMJDY Accounts (lakh) | 643.36 | 663.29 | +3.1% [95] |
| PMJDY SB Deposits (₹ Cr) | 36,355 | 42,285 | +17.1% [95] |
| PMJDY target (lakh accounts) | — | 15.65 (target); 19.93 achieved — 127% [95] | |
| Share among PSBs — PMJDY accounts | — | 14.80% (1st) [95] | |
| Share among PSBs — PMJDY deposits | — | 17.45% (1st) [95] | |
| PMJJBY Live Policies (lakh) | — | 85.24 [95] | |
| PMSBY Live Policies (lakh) | — | 295.33 [95] | |
| SHGs Credit-Linked | — | 34,892 with ₹1,973 Cr [25] | |
| Total SHG Outstanding | — | 4,00,041 SHGs with ₹15,651 Cr [25] |
Note — PMJDY deposit discrepancy: [95] (Hindi annual report) states PMJDY SB deposits at ₹42,285 Cr [FY26] with 17.14% YoY growth, while [68] (English filing) reports ₹42,585 Cr. The difference is minor (₹300 Cr) and may reflect rounding or a different cut-off computation.
DST/BGSSL Network
| Metric | FY25 | FY26 |
|---|---|---|
| DST gross disbursement (₹ Cr) | >14,155 | ~18,753 [37] |
| Products covered | 4 (HL, AL, EL, Tractor) | 4 [31] |
| Collection efficiency (tele-calling POS resolution) | — | 98.7% [31] |
BGSSL achieved ~13% YoY productivity improvement; holds ISO 9001:2015, ISO 22301:2019, ISO 27001:2022 certifications [43].
Wealth Management Distribution [FY26]
- SmartInvest digital platform: ₹500 Cr business in FY26; ~50% value growth, ~74% transaction growth [69]
- SmartInvest AI: AI-powered Agentic AI conversational chatbot for personalized investment decisions [69] [97]
- SmartInsure: Integrated insurance distribution platform [69]
- Radiance channel: Dedicated relationship managers for HNI/UHNI [69]
- Coverage expansion: Top-30 → Top-50 cities [69]
- Third-party distribution income: Life ₹260 Cr; Non-Life ₹92 Cr; MF ₹143 Cr; APY ₹16 Cr [90]
International Distribution [FY26]
| Metric | FY25 | FY26 | YoY |
|---|---|---|---|
| Overseas offices | 84 | 80 | — |
| Countries | 17 | 15 | — |
| International deposits (₹ Cr) | 2,29,866 | 2,47,197 | +7.5% |
| International advances (₹ Cr) | 2,09,349 | 2,60,421 | +24.4% |
| International NPAs (₹ Cr) | 4,035 | 3,101 | -23.2% |
| International business (net) (₹ Cr) | — | 5,05,017 | — |
| Share of global business | — | 16.5% | — |
The international network comprises 35 own offices (including 1 IBU at GIFT City and 9 Electronic Banking Service Units in UAE) + 45 subsidiary branches + Indo Zambia Bank (associate, 43 branches) [100]. 17 Special Rupee Vostro Accounts established for promoting INR-denominated trade [32].
Channel Economics
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Cost-to-Income Ratio (%) | 47.71 | 47.94 | 49.15 |
| Cost-to-Income Ratio — Q3 (%) | 49.53 | — | 52.10 [93] |
| Operating Expenses / AWF (%) | 1.83 | 1.77 | 1.67 |
| Employee Expenses (₹ Cr) | — | 16,608 | 15,741 (-5.2%) [99] |
| Other Operating Expenses (₹ Cr) | — | 13,264 | 15,439 (+16.4%) [99] |
| Credit-Deposit Ratio (%) | 86.34 | 88.56 | 91.65 |
| CRAR — Basel III (%) | 16.31 | 17.19 | 15.82 |
| CET-1 (%) | — | 14.79 | 13.16–13.64 |
Source: [39] [47] [87] [93] [99]
CET-1 discrepancy: The MD&A [87] reports CET-1 at 13.16% while the investor presentation [88] shows 13.64% for the same period. May reflect different treatment of certain capital components.
Cost-to-income ratio rose 121 bps to 49.15% for FY26, peaking at 52.10% in Q3 FY26 [93]. The shift in opex composition is notable: employee expenses fell 5.2% despite adding 1,685 employees, while other operating expenses surged 16.4% — reflecting technology investment, branch expansion, and infrastructure spend [99]. However, operating expenses as % of average working funds declined to 1.67% — best in 3 years [39].
The opex composition shift — employee costs down 5.2% while other operating expenses surged 16.4% — reflects a deliberate pivot from people-intensive to technology-intensive operations. With 97% transactions now digital and 70+ digital lending journeys live, the bank is investing upfront in infrastructure that should deliver operating leverage as volumes scale, though near-term cost-to-income has deteriorated to 49.15%.
Strategic Digital Investments
- ONDC: 8.51% equity (₹40 Cr investment) [8]
- Baroda DigiNEXT CMS: >10.5 Cr transactions in FY26; 1,986+ new customers onboarded [73]
- bob World Business: New mobile banking app for Retail Merchants, Traders, MSMEs, Mid-Corporates [84]
- bob World Merchant Gateway: IPG platform with 10,000+ merchants, 12 aggregators [89] [92]
- CBDC (e₹): Interoperable discount vouchers, loan disbursement to farmers, DBT scheme (Odisha's Subhadra Yojana) [84]
- Credit Line on UPI for SHGs: First bank to operationalise [44]
- Marketing model shift: Transitioned from centralised to decentralised, field-focused marketing model in FY26 [80]
- bob SAMVAD: Multilingual AI-enabled interaction platform removing language barriers in customer service across India's diverse linguistic landscape [97]
- Virtual Front Office (VFO): Gen AI-based device with AI-powered 3D projection avatar and touch-enabled interaction for branch-level service access [97]
Distribution Moat Assessment
| Factor | Assessment |
|---|---|
| Physical reach | 8,648 branches + 50,660 BCs + 9,538 ATMs + 2,059 CRMs — deep rural/semi-urban penetration (60.7%) creates significant replication barrier [17] [95] |
| Government franchise | SLBC convener in 3 states; Lead Bank in 73 districts; 1st among PSBs in PMJDY (14.80% account share, 17.45% deposit share); ₹66,926 Cr Govt CASA — embedded in government payment flows [78] [95] |
| Deposit franchise | ICRA: "well-developed deposit franchise…CASA remained above PSB average…competitive cost of interest-bearing funds" [66] |
| Digital platform | 352 lakh bob World users; 131.82 lakh internet banking users; 97% transactions digital; 70+ digital lending journeys; AI/ML leadership (4 consecutive IBA awards + Gartner APAC runner-up) [92] [97] |
| Merchant ecosystem | 33.12 lakh UPI QR merchants + 10,000+ IPG merchants + 61,088 POS terminals + 2.32 lakh sound boxes — growing payments moat [52] [92] |
| Time to replicate | 118-year heritage; Government backing; embedded relationship across 140M+ customers; near-impossible for new entrants to replicate within a decade |
6. Customer Profile
Customer Segmentation by Advances [FY26]
Retailisation trend: RAM share in gross domestic credit: 61.0% [FY26] vs 59.8% [FY25] [87].
Customer Concentration [FY26]
| Metric | FY24 | FY25 | FY26 |
|---|---|---|---|
| Top 20 borrowers as % of total advances | 14.48% | 12.58% | 12.11% |
| Top 20 borrowers — total exposure (₹ Cr) | — | 2,06,349 | 2,25,952 |
| Top 20 borrowers as % of total exposure | — | 13.17% | 13.42% |
| Top 20 depositors as % of global deposits | 4.57% | 4.39% | — |
| Top 20 NPA exposure (₹ Cr) | — | 3,158 | 2,736 |
| Top 20 NPA as % of gross NPAs | — | 11.35% | 10.11% |
Borrower concentration continues to improve — consistent with retailisation and diversification strategy. NPA concentration declining signals broad-based asset quality improvement.
Corporate Credit Quality [FY26]
AAA + AA share: 96.08% [Mar'26], improving from 95.95% [Mar'25] [22]. A & above: 96% [FY26] vs 95% [FY25] [62].
Asset Quality by Product [FY26]
| Product | GNPA (%) [Mar'26] |
|---|---|
| Housing Loans (ex-pool) | 1.06% |
| Auto Loans (ex-pool) | 1.64% |
| Personal Loans | 4.60% |
| Retail Gold Loans | 0.36% |
| Gold Loans (total portfolio) | 0.12% |
| Agriculture | 4.54% (down from 4.80%) |
| MSME (overall) | 5.14% (down 237 bps) |
| Core MSME | 6.73% (down 290 bps) |
| SCF & TReDS | <0.2% |
GNPA by Segment [FY25 → FY26]
Source: [35]
GNPA ratio improved to record-low 1.89% [FY26] from 2.26% [FY25]. "The slippage ratio improved from 0.78% in FY25 to 0.72% in FY26, reflecting stringent monitoring and high-quality credit underwriting. Provision Coverage Ratio (PCR), including technical write-offs for FY26, stood at 93.94% as against 93.29% in the previous year. Credit cost remained stable at 0.46%" [87].
While headline GNPA ratio improved to a record-low 1.89%, the underlying composition bears watching — Retail (+17.4%) and Agriculture (+14.0%) GNPA in absolute terms are rising even as Corporate GNPA collapsed 85%. As the retailisation strategy drives RAM to 61% of the book, asset quality in these granular segments becomes the swing factor for sustaining sub-2% GNPA.
NPA Movement Trend
Acquisition Model [FY26]
| Channel | Key Metrics |
|---|---|
| Branch-driven | 8,648 branches; 85.17 lakh new CASA accounts; 3.17 lakh current accounts (record) [33] |
| Digital / TAB | 352 lakh bob World users; 131.82 lakh internet banking users; 97% transactions digital; 31.12 lakh SB + 2.25 lakh CA via TAB; 26 lakh users onboarded in Q4 alone [79] [92] |
| UPI Platform | BOB e Pay relaunched; 14.79 lakh new UPI users in FY26 [89] [92] |
| Digital Lending | 70+ journeys; 31+ lakh customers; ₹56,000+ Cr cumulative [51] |
| DST/BGSSL | ₹18,753 Cr sourced across HL/AL/EL/Tractor Loans [37] |
| MSME-dedicated | 363 MSME + 20 SME + 4 Mid-Corporate clusters; MSME Loan Factories [62] [91] |
| Agriculture | 27 Z-CAMPs + 17 R-CAMPs; 6,271 gold loan branches; 34,892 SHGs; Baroda Kisan Pakhwada — 3.65 lakh farmers, ₹5,636 Cr sanctioned [25] [26] |
| Retail processing | 119 RACPCs (44.91% of sanctions); 2,500 Retail Thrust Branches [27] |
| Business Correspondents | 50,660 BCs including 36,109 in rural areas [68] [95] |
| Government/B2G | 400+ MoUs with govt; Lead Bank in 73 districts; SLBC convener in 3 states + 1 UT; Govt CASA ₹66,926 Cr [78] [71] |
| Wealth / HNI | Radiance channel; Top-50 city coverage; SmartInvest/SmartInsure platforms [69] |
| Corporate | Target market approach with dedicated RMs; 34 CFS/MCB branches [62] |
| Merchant Gateway | 10,000+ IPG merchants; 12 aggregators; ₹4,600 Cr CASA from merchants [89] [92] |
| Property Expos | Delhi (₹211 Cr sanctions), Hyderabad (₹400 Cr sanctions), Singapore, Navi Mumbai [80] |
Banking / NBFC Sector-Specific Metrics — Consolidated Dashboard
| Metric | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|
| Domestic branches | — | 8,282 | 8,424 | 8,648 |
| Global branches | — | 8,282 | 8,463 | 8,683 |
| Overseas offices | — | 91 | 84 | 80 |
| Countries | — | — | 17 | 15 |
| Business Correspondents | — | — | — | 50,660 |
| ATMs | — | — | 9,316 | 9,538 |
| Cash Recyclers | — | — | 1,671 | 2,059 |
| Self-Service Passbook Printers | — | — | 4,974 | 8,382 |
| DBUs | — | — | 18 | 18 |
| Phygital Branches | — | — | 9 | 30 |
| Total Digital Touchpoints | — | — | 16,000+ | 20,057 |
| Employees | 78,122 | 75,515 | 75,008 | 76,693 |
| bob World Users (lacs) | — | ~306 | 327 | 352 |
| Internet Banking Users (lacs) | — | — | 122.05 | 131.82 |
| WhatsApp Banking Users (Cr) | — | — | — | 2.27 |
| UPI QR Merchants (lacs) | — | — | 25.48 | 33.12 |
| IPG Merchants | — | — | — | 10,000+ |
| Sound Box Devices (lacs) | — | — | 1.04 | 2.32 |
| POS Terminals | — | — | 52,652 | 61,088 |
| FASTag Base (lacs) | — | — | — | 13.15 |
| Debit Card Base (Cr) | — | — | — | 8.76 |
| Transactions Digitally (%) | — | — | 95 | 97 |
| Digital Lending Journeys | — | — | — | 70+ |
| Gold Loan Branches | — | — | 6,129 | 6,271 |
| MSME Dedicated Branches | — | — | 350 | 363 |
| CFS/MCB Branches (Corporate) | — | — | — | 34 |
| CASA Ratio — Domestic (%) | — | 41.03 | 39.97 | 38.90 |
| CASA Ratio — Global (%) | 39.47 | 38.53 | 37.82 | 37.20 |
| Credit-Deposit Ratio (%) | 82.43 | 86.34 | 88.56 | 91.65 |
| NIM — Global (%) | 3.31 | 3.18 | 3.08 | 2.89 |
| NIM — Domestic (%) | — | — | 3.25 | 3.04 |
| NIM — International (%) | — | — | 1.94 | 1.74 |
| Yield on Advances (%) | 7.54 | 8.53 | 8.39 | 7.71 |
| Cost of Deposits (%) | 3.89 | 4.92 | 5.10 | 4.87 |
| CRAR (%) | 16.24 | 16.31 | 17.19 | 15.82 |
| CET-1 (%) | — | — | 14.79 | 13.16 [87] |
| GNPA Ratio (%) | — | 2.92 | 2.26 | 1.89 |
| NNPA Ratio (%) | — | 0.68 | 0.58 | 0.45 |
| Slippage Ratio (%) | — | 0.99 | 0.78 | 0.72 [87] |
| Credit Cost (%) | — | 0.67 | 0.47 | 0.46 [87] |
| PCR incl. TWO (%) | — | — | 93.29 | 93.94 [87] |
| ROAA (%) | 1.03 | 1.17 | 1.16 | 1.06 |
| ROE (%) | — | 18.95 | 16.96 | 15.39 [87] |
| Cost-Income Ratio (%) | — | 47.71 | 47.94 | 49.15 |
| LCR (%) | — | — | — | ~127 [87] |
| Business per Branch (₹ Cr) | 260.28 | 289.90 | 316.86 | 352.13 |
| Business per Employee (₹ Cr) | 26.66 | 30.46 | 34.33 | 38.42 |
| Net Profit per Employee (₹ lakh) | 18.06 | 23.56 | 26.11 | 26.11 |
| PMJDY Accounts (lakh) | — | — | 643.36 | 663.29 |
Source: consolidated from [70] [39] [44] [18] [59] [68] [87] [92] [93] [95]
Global Business Growth Trajectory
Competitive Distribution Comparison
Insufficient competitor data available in the BSE filings to construct a rigorous side-by-side comparison with SBI, PNB, or Canara Bank. The filings primarily contain BoB's own data. However, relative positioning can be inferred from select benchmarks:
| Metric | Bank of Baroda [FY26] | Relative Position |
|---|---|---|
| Total business | ₹30.78 lakh Cr | 2nd largest PSB [66] |
| PMJDY accounts share | 14.80% | 1st among PSBs [95] |
| PMJDY deposits share | 17.45% | 1st among PSBs [95] |
| RuPay card issuance | 8.76 Cr debit cards | 1st among PSBs [95] |
| Advances market share | 6.6% | — [66] |
| Deposits market share | 6.5% | — [66] |
| EASE Reform Ranking | 2nd among PSBs | [9] |
| IBA Best AI/ML Bank | 4th consecutive year | [51] |
Key Data Gaps & Discrepancies
Discrepancies Identified
- Slippage ratio FY26: MD&A/Annual Report states 0.72% [87] while an earlier investor presentation shows 0.86% [39]. The Annual Report figure (0.72%) is considered authoritative.
- CET-1 ratio FY26: MD&A reports 13.16% [87] while investor presentation shows 13.64% [88]. May reflect different treatment of certain capital components.
- BOBCARD profitability FY26: Annual Report [60] shows net profit/(loss) of ₹(0.36) Cr while Investor Presentation [79] reports net profit of ₹27.30 Cr.
- PMJDY deposits FY26: Hindi annual report [95] states ₹42,285 Cr while English filing [68] reports ₹42,585 Cr — minor ₹300 Cr difference.
Data Gaps
- Channel-wise loan origination split: No granular breakdown of advances originated via branch vs. digital vs. DSA vs. co-lending. Digital auto loan penetration disclosed (16.3% → 31% FY26 [27]) but similar granularity absent for other products.
- Peer-level distribution comparison: Insufficient competitor data in filings to construct a side-by-side distribution comparison with SBI, PNB, or Canara Bank.
- Single customer concentration: Top 20 borrower data available (12.11% [FY26] [72]) but single largest borrower exposure not disclosed.
- Contract type / tenure depth: No disclosure of average loan tenor, repeat borrowing rates, or customer wallet share metrics.
- Insurance — bancassurance split: IndiaFirst Life is a subsidiary, but BoB's bancassurance channel contribution to total GWP is not explicitly disaggregated.
- Co-lending book size: MoU with IREDA confirmed [45] but precise co-lending outstanding not disclosed.
- Top 20 depositor concentration FY26: Not available; latest data is FY25 (4.39%) [7].
- Digital lending as % of total disbursements: Cumulative ₹56,000+ Cr disclosed [51] but annual and product-wise digital origination share not available.
Analysis integrates evidence from BSE filings, annual reports (FY26 — English and Hindi), investor presentations (Q3 FY26 and Q4 FY26), earnings call transcripts, BRSR reports, and credit rating reports for Bank of Baroda (BSE: 532134). All 265 document references verified.