Bank of Baroda Share Price Slips After Q1 Results as Brokerages Cut Targets

Bank of Baroda share price slipped nearly 1% on Monday, extending pressure from Q1 results. The public sector bank reported a 72% year-on-year drop in net profit. Bank of Baroda posted consolidated net profit of ₹1,278 crore for Q1 FY27. A one-time ₹5,670 crore provision for the NMC Health settlement drove that decline. Motilal Oswal cut its FY27 earnings estimate by 18.9% following the results. 

The brokerage set a revised target price of ₹275 for Bank of Baroda shares. Shares traded between ₹241.90 and ₹247.70 during Monday’s volatile session. Core operating metrics, however, showed underlying strength across several segments.

Bank of Baroda’s Q1 FY27 Results Explained

Bank of Baroda (BANKBARODA.NS) reported consolidated net profit of ₹1,278 crore for the June quarter. That marked a steep 72% decline from ₹4,541 crore a year earlier. A one-time exceptional provision of ₹5,670 crore drove most of that drop. Adjusted for this settlement, underlying profit would have reached roughly ₹5,530 crore.

Bank of Baroda’s key Q1 FY27 financial figures:

• Net profit fell 72% year-on-year to ₹1,278 crore.
• Net interest income rose 9.5% year-on-year to ₹12,524 crore.
• Net interest margin declined 12 basis points sequentially to 2.77%.
• Total income reached ₹36,681 crore, up from ₹35,766 crore a year earlier.

The NMC Health Settlement Behind the Profit Drop

Bank of Baroda settled legal claims from NMC Health’s joint administrators this quarter. The UAE-based healthcare group’s collapse triggered years of cross-border litigation exposure. This one-time ₹5,670 crore provision resolved that legacy dispute permanently. Management said the settlement removes meaningful uncertainty from the bank’s balance sheet.

Bank of Baroda Share Price Movement This Week

Bank of Baroda shares actually rose 1.48% on results day, closing at ₹246.60. Monday’s session told a different story, with shares slipping nearly 1%. Monday’s volatile trading saw the stock swing between ₹241.90 and ₹247.70.  Bank of Baroda’s market capitalization stands at ₹1,27,448 crore currently.

#BankofBaroda share price target cut by multiple analysts after #Q1, but 75% still say 'buy'@senmeghna https://t.co/WW9jYR4pNL

— CNBC-TV18 (@CNBCTV18Live) July 27, 2026

Bank of Baroda’s broader stock performance context:

• Shares have declined 16.9% over the past six months.
• The stock is down 1.5% compared to this time last year.
• Bank of Baroda’s 52-week high stands at ₹325.50 per share.
• The 52-week low sits at ₹230.81, reached earlier this year.

Why Brokerages Are Cutting Their Price Targets

Motilal Oswal reiterated its Neutral rating with a revised target of ₹275. The brokerage cut its FY27 earnings estimate by 18.9% following results. FY28 estimates were trimmed by a smaller 5.2% margin. Motilal Oswal now projects FY27 return on assets of just 0.85%.

Bank of Baroda’s Retail Lending Showed Real Strength

Bank of Baroda’s organic retail advances grew 18.4% year-on-year this quarter. Auto loans led that growth, expanding 25.3% compared to the prior year. Mortgage loans grew 27.4%, while home loans rose 14.7% over the same period. Education loans added a further 10.8% to the retail lending book.

Additional Q1 FY27 metrics worth watching closely:

• Gross NPA ratio rose to 1.99%, up from 1.89% sequentially.
• Net NPA increased to 0.50%, up from 0.45% a quarter earlier.
• Capital adequacy ratio improved to 16.3%, up from 15.8%.
• CASA deposits grew 10% year-on-year to ₹5,21,149 crore.

Bank of Baroda’s Guidance for the Rest of FY27

Bank of Baroda maintained its credit growth guidance at 12% to 14%. Management guided for return on assets above 1% going forward. Net interest margins are expected to stay between 2.75% and 2.95%. The bank carries a floating provision that will support future ECL transitions.

Deposit Growth Kept Pace With Bank of Baroda’s Lending

Global deposits grew 13.8% year-on-year, while domestic deposits rose 14.7%. That growth roughly matched the pace of Bank of Baroda’s retail loan expansion. Balanced deposit and credit growth helps the bank manage funding costs effectively. Stable deposit momentum also supports the bank’s guided margin range going forward.

Final Thoughts: What Analysts Are Watching Next

Analysts see Bank of Baroda’s headline profit miss as largely a one-off event. Core NII growth and strong retail lending suggest underlying business momentum remains intact. Rising NPA ratios, though modest, warrant continued monitoring over coming quarters. 

Motilal Oswal’s ₹275 target still implies meaningful upside from current trading levels. Investors should focus on core operating trends rather than this quarter’s exceptional charge

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.