Bank of Baroda Q2 Earnings Preview: Analysts Expect Weak Performance

Bank of Baroda is expected to report a weaker set of financial results for the quarter ending September 30, 2025. The bank's Board of Directors is scheduled to convene on Friday, October 31, 2025, to consider and approve the unaudited standalone and consolidated financial results. Analysts widely foresee a hit to the bank's bottom line, primarily driven by reduced treasury income and pressure on net interest margins (NIM).

Nomura estimates a net profit decline of approximately 16% year-on-year to ₹4,390 crore, with net interest income (NII) growing by 1% and pre-provision profit (PPoP) falling by 23%. They anticipate NIM compression of 26 basis points (bps) year-on-year to 2.8%.

PL Capital projects a sharper 30% year-on-year drop in net profit to ₹3,650.5 crore, with NII decreasing by 2% and PPoP falling by 28%. They expect gross non-performing assets (GNPAs) to improve slightly.

Kotak Institutional Equities forecasts a 32% year-on-year decline in operating profit due to NIM contraction (10 bps quarter-on-quarter) and lower non-interest income. They anticipate rising slippages, falling return on assets (RoA) and return on equity (RoE), with net profit estimated at ₹3,591.6 crore, a 31% year-on-year decrease.

Elara Capital offers a more conservative view, expecting an 8% year-on-year profit decline to ₹4,829.5 crore and a 13% year-on-year fall in PPoP.

Impact This news may influence investor sentiment and Bank of Baroda's stock price, especially around the earnings announcement date. A weaker-than-expected performance could lead to a stock price correction, while any positive surprises might boost it. Investors will closely monitor loan growth, deposit challenges, and the NIM outlook. Rating: 7/10

Difficult Terms: Net Profit: The profit a company makes after deducting all expenses, taxes, and interest. Treasury Income: Income generated from a bank's investments in securities like bonds and government instruments. Margin Pressure: A situation where a company's profit margins shrink, often due to rising costs or falling prices, affecting profitability. Net Interest Income (NII): The difference between the interest income a bank earns from its lending activities and the interest it pays out to depositors. Pre-Provision Profit (PPoP): A bank's operating profit before accounting for provisions for bad loans and taxes. It indicates the core profitability of the bank's operations. Net Interest Margin (NIM): A financial ratio measuring a bank's net interest income divided by the average earning assets, reflecting its efficiency in earning from loans and paying on deposits. Basis Points (bps): A unit of measure used in finance, where 100 basis points equal 1 percent. Return on Asset (RoA): A profitability ratio that indicates how profitable a company is in relation to its total assets. Gross Non-Performing Asset (GNPA) ratio: The ratio of gross non-performing assets (loans overdue for 90+ days) to total advances. Slippages: Loans that were performing but became non-performing assets during a specific period. Retail: Refers to individual customers. SME: Small and Medium Enterprises.