Bank of Baroda rallies 3%, hits 52-week high on strong Q2 business update

Bank of Baroda stock rallied after the bank reported a healthy business growth in Q2FY26 with global advances at ₹12.79 trn, up 11.9% YoY, while global deposits stood at ₹15 trillion, up 9.3% YoY.

Bank of Baroda share price today

 

Shares of Bank of Baroda hit a 52-week high of ₹271.85, gaining 3 per cent on the BSE in Monday’s intra-day trade after the bank reported a strong business growth for the July to September 2025 quarter (Q2FY26).

 

The stock price of the public sector bank surpassed its previous high of ₹266.80 touched on December 6, 2024. It had hit an all-time high of ₹298.45 on June 3, 2024.

 

Bank of Baroda - Q2 business update

 

Bank of Baroda (BoB) reported a healthy business growth in Q2FY26 with global advances at ₹12.79 trillion, up 11.9 per cent year-on-year (YoY) (5.9 per cent quarter-on-quarter (QoQ)), while global deposits stood at ₹15 trillion, up 9.3 per cent YoY (4.5 per cent QoQ). Domestic deposits rose 9.7 per cent YoY to ₹12.72 trillion, while domestic advances grew 11.5 per cent YoY to ₹10.47 trillion, led by robust traction in retail advances, which increased 17.5 per cent YoY to ₹2.73 trillion.

 

 

Broad-based growth across domestic deposits and retail advances highlights continued franchise strengthening, with retail momentum providing a healthy cushion to margins, ICICI Securities said in a note.

 

Meanwhile, analysts at JM Financial Institutional Securities expect large banks’ earnings to bottom out in Q2, and earnings growth should pick up from Q3 onwards. With valuation remaining benign for large banks and expected pickup in earnings growth, the brokerage firm said they like large banks amongst financials.  CATCH STOCK MARKET LIVE UPDATES TODAY 

CARE Ratings rationale and key rating drivers – Bank of Baroda

 

In the last few years, BoB has seen improvement in asset quality parameters with lower incremental slippages, leading to lower credit costs, which and strong credit growth, have helped improve the profitability. However, the bank’s ability to contain incremental slippages and maintain its asset quality remains a monitorable.

 

CareEdge Ratings expects the bank’s net interest margin (NIM) to witness some pressure in FY26, considering the faster repricing of advances than deposits, which would result in a moderation in profitability for the bank in the near term.

 

Meanwhile, BoB has maintained comfortable capitalisation levels with higher cushion over the minimum regulatory requirement in the last few years. The bank had raised equity of ₹4,500 crore through qualified institutional placement (QIP) in FY21, post which, the accretion to capital has been through internal accruals with improvement in profitability.

 

CareEdge Ratings expects BoB to keep sufficient cushion over the minimum regulatory requirements in the medium term, in line with similar PSB peers. The ‘stable’ outlook reflects CareEdge Ratings’ expectation that BOB will continue to maintain its steady growth in advances and deposits over the medium term while maintaining stable asset quality and comfortable capitalisation levels, the rating agency said in its rationale.