Bank of Baroda: Profit Soars, Dividends Grow

Bank of Baroda has concluded FY26 with a record net profit of ₹20,021 crore, marking a significant achievement for the public sector bank. This strong financial performance is accompanied by a notable increase in shareholder returns, with the dividend per share rising from ₹2.85 in FY22 to ₹8.50 in FY26.

The bank's financial health has considerably improved, with asset quality reaching multi-year lows. Gross Non-Performing Assets (NPAs) were reported at 1.89% and Net NPAs at 0.45% as of FY26, well within regulatory limits for dividend payouts.

Core operations saw total business crossing ₹30 lakh crore in FY26. Net interest income grew by 2.5% to ₹47,682 crore, though Net Interest Margin slightly contracted to 2.89%. The bank maintained a healthy Capital to Risk-Weighted Assets Ratio (CRAR) of 15.82% in FY26, providing a comfortable buffer above regulatory requirements.

Looking ahead, Bank of Baroda anticipates continued loan growth and stable asset quality, which supports its capacity for consistent dividend payouts. The bank aims to maintain a dividend payout ratio between 20% and 40% of its net profit, balancing regulatory mandates with shareholder returns.