Treasury gains carried Bank of Baroda's Q2 FY27 profit jump

Companies No. 109 2 November 2026 · 2 min read · By Pranami Hayaran

Bank of Baroda's net profit rose 35.8% to ₹6,532 crore in July to September 2026 (Q2 FY27), its investor presentation of 30 October shows. So lending had a great quarter? Not really. Most of the jump came from the treasury desk, helped by selling shares of NSE, the stock exchange, when it listed.

A bank earns mainly from the gap between the interest it charges on loans and pays on deposits, called net interest income. That rose 9.0%. It also holds bonds and shares, and the profit from selling them or marking them up to market prices is treasury income. That jumped 3.8x.

The extra ₹3,007 crore of treasury income is more than the whole ₹2,705 crore rise in profit before tax. The bank sold part of its NSE stake in the listing for ₹1,372 crore, and another ₹1,907 crore came from revaluing investments it holds. The results do not say how much of either is NSE.

Hold treasury income at last year's level and profit before tax would have been 4.8% lower. The reason is provisions, money set aside for loans that may not be repaid, which rose 93.3%.

The gain also follows a big bill. On 1 July the bank paid ₹5,680 crore to settle claims from the administrators of the failed NMC group, which cut its April to June profit to ₹1,278 crore. So for April to September, profit is still 16.5% lower than a year ago.

So the jump belongs to the treasury desk, not to lending. The core business grew at a steady pace while bad loans cost more, and a listing gain does not come every quarter.

A waterfall from profit before tax of ₹6,343 crore in Q2 FY26, up ₹3,007 crore of extra treasury income and ₹847 crore from the rest of operating profit, down ₹1,149 crore of extra provisions, to ₹9,048 crore in Q2 FY27.

Paired bars for 3 parts of treasury income: gains on selling investments ₹654 crore to ₹1,824 crore, revaluing investments ₹178 crore to ₹1,907 crore, and foreign exchange ₹254 crore to ₹362 crore, Q2 FY26 against Q2 FY27.

Paired bars by quarter: April to June profit ₹4,542 crore in FY26 and ₹1,278 crore in FY27; July to September ₹4,809 crore in FY26 and ₹6,532 crore in FY27.

Sources