Home / Business and Economy / Bank of Baroda Profit Plummets 72% on Massive Legal Payout
Bank of Baroda Profit Plummets 72% on Massive Legal Payout
27 Jul
Summary
- Bank of Baroda's net profit fell 72% in the financial year 2026-27.
- A Rs 5,700 crore settlement with NMC Health significantly impacted earnings.
- Motilal Oswal maintains a 'Neutral' rating with a target price of Rs 275.
Bank of Baroda's net profit saw a substantial 72% year-on-year decrease in the financial year 2026-27. This downturn was primarily attributed to a significant one-time cost of Rs 5,700 crore associated with an out-of-court settlement with the joint administrators of UAE-based NMC Health.
Despite the sharp drop in net profit, the lender's operating performance remained aligned with its growth guidance of 12-14%. However, Net Interest Income (NII) fell short of estimates by nearly 3%. Advance growth was robust, driven by the RAM segment, with the retail book expanding by 18.4% annually.
Motilal Oswal has reiterated a 'Neutral' rating on Bank of Baroda shares, adjusting its target price to Rs 275 per share. The brokerage has reduced its earnings estimates for FY27 and FY28, anticipating credit costs to remain elevated around 60 basis points in FY28.
