Bank of Baroda GNPA falls to 1.78% as slippages decline

Oct 30, 2026•3 min read

Bank of Baroda

BANKBARODA

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Bank of Baroda reported a gross non-performing asset, or GNPA, ratio of 1.78% in Q2FY27, down from 1.99% in Q1FY27 and 2.16% in Q2FY26. Fresh global slippages declined to Rs 2,392 crore from Rs 3,183 crore in the preceding quarter, although credit cost rose to 0.55% from 0.29%.

How did BOB's asset-quality ratios change in Q2FY27?

BOB's headline asset-quality ratios improved in Q2FY27: its GNPA ratio fell 21 basis points quarter on quarter to 1.78%, while its net non-performing asset, or NNPA, ratio declined 13 basis points to 0.37%. A basis point equals one-hundredth of a percentage point. The GNPA ratio had been 1.89% in Q4FY26 before rising to 1.99% in Q1FY27.

The year-on-year comparison also showed lower impaired-loan ratios. GNPA declined from 2.16% in Q2FY26 to 1.78% in Q2FY27, while NNPA declined from 0.57% to 0.37%. The gross NPA closing balance fell to Rs 26,897 crore in Q2FY27 from Rs 28,150 crore in Q1FY27 and Rs 27,600 crore in Q2FY26.

Asset-quality measure (%)	Q2FY26	Q1FY27	Q2FY27
GNPA ratio	2.16	1.99	1.78
NNPA ratio	0.57	0.50	0.37
Slippage ratio	0.91	0.91	0.69
Credit cost	0.29	0.29	0.55

Why did BOB's gross NPA balance decline in Q2FY27?

BOB's gross NPA balance declined because Rs 4,101 crore of reductions exceeded Rs 2,847 crore of additions in Q2FY27. Additions included Rs 2,392 crore of fresh slippages, while reductions comprised Rs 1,240 crore of recovery, Rs 1,015 crore of upgradation and Rs 1,840 crore of write-offs. The closing gross NPA balance was therefore Rs 26,897 crore.

Cash recovery plus upgradation increased to Rs 2,255 crore in Q2FY27 from Rs 1,694 crore in Q1FY27. Total recovery, which includes recovery in technical write-off accounts, rose to Rs 2,984 crore from Rs 2,700 crore. The provision coverage ratio, including technical write-off accounts, increased to 94.65% at Q2FY27 from 93.28% in Q1FY27; excluding such accounts, it rose to 79.48% from 75.07%.

The half-year figures showed a similar reduction in fresh stress. H1FY27 fresh slippages were Rs 4,666 crore, compared with Rs 5,390 crore in H1FY26, and the slippage ratio fell to 0.67% from 0.90%. Credit cost was unchanged at 0.42% across both half-year periods, while total recovery increased to Rs 4,769 crore from Rs 3,890 crore.

Why did BOB's credit cost rise despite lower slippages?

BOB's credit cost rose to 0.55% in Q2FY27 even as its slippage ratio declined to 0.69%, meaning the two reported indicators moved in opposite directions in the quarter. Credit cost was 0.29% in both Q1FY27 and Q2FY26, making the Q2FY27 reading 26 basis points higher on both comparisons. The presentation does not specify the reason for this increase.

Fresh slippages fell 25% quarter on quarter, from Rs 3,183 crore in Q1FY27 to Rs 2,392 crore in Q2FY27. They were also below Rs 2,669 crore in Q2FY26. This brought the quarterly slippage ratio down from 0.91% in Q1FY27 and Q2FY26 to 0.69%, the lowest level in the five quarters presented from Q2FY26.

The Q2FY27 data therefore show lower GNPA, NNPA and slippage ratios alongside higher credit cost. BOB's provision coverage ratio including technical write-off accounts was 94.65% at September 2026, up from 93.21% at September 2025. The presentation reports these as separate indicators and does not provide a reconciliation between the coverage movement and the quarterly credit-cost increase.

Which BOB segments generated the most fresh slippages?

MSME, agriculture and retail were BOB's main sources of fresh slippages in Q2FY27, at Rs 839 crore, Rs 840 crore and Rs 676 crore, respectively. MSME means micro, small and medium enterprises. Together, the three segments contributed Rs 2,355 crore of the Rs 2,392 crore global fresh-slippage total; corporate contributed Rs 5 crore and international Rs 10 crore.

MSME recorded the biggest sequential decline, with fresh slippages falling from Rs 1,298 crore in Q1FY27 to Rs 839 crore in Q2FY27. Retail slippages declined from Rs 870 crore to Rs 676 crore, while agriculture declined from Rs 993 crore to Rs 840 crore. Agriculture was nevertheless the only one of these three segments with higher H1FY27 slippages, at Rs 1,634 crore versus Rs 1,438 crore in H1FY26.

Fresh slippages (Rs crore)	Q2FY26	Q1FY27	Q2FY27
MSME	986	1,298	839
Retail	833	870	676
Agriculture	834	993	840
Global	2,669	3,183	2,392

At September 2026, agriculture was BOB's largest domestic NPA segment at Rs 9,128 crore, marginally above MSME at Rs 9,107 crore; retail stood at Rs 5,613 crore. Domestic NPAs totalled Rs 23,989 crore and international NPAs were Rs 2,908 crore, producing the Rs 26,897 crore global gross NPA balance.

What do BOB's retail and early-warning indicators show?

BOB reported a 4.88% GNPA ratio for personal loans excluding pools at September 2026, higher than the corresponding 1.60% for auto loans, 0.93% for housing loans and 0.44% for retail gold loans. The retail NPA balance fell to Rs 5,613 crore in Q2FY27 from Rs 5,877 crore in Q1FY27, although the disclosed product ratios show variation within that portfolio.

BOB's CRILC SMA1 and SMA2 measure was 0.06% at September 2026, down from 0.07% at June 2026 and 0.39% at September 2025. CRILC is the Reserve Bank of India's Central Repository of Information on Large Credits, while SMA1 and SMA2 are special-mention account categories. BOB defines the measure as a percentage of standard advances for CRILC accounts with outstanding above Rs 5 crore.

Collection efficiency excluding agriculture stood at 99.22% at September 2026. Separately, BOB reported Rs 38,145 crore of exposure to National Company Law Tribunal accounts, with total provision coverage of 99% and a stated NCLT provision coverage ratio of 99.32%. Accounts filed by BOB represented Rs 3,512 crore of exposure, while accounts filed by others represented Rs 28,186 crore.

Conclusion

BOB's Q2FY27 disclosures show improved headline asset quality and lower fresh slippages, while quarterly credit cost moved higher. GNPA fell to 1.78%, NNPA to 0.37% and the slippage ratio to 0.69%, while reductions of Rs 4,101 crore exceeded additions of Rs 2,847 crore. Recoveries, upgradations and write-offs contributed to the lower gross NPA balance of Rs 26,897 crore.

The next disclosure should clarify whether the 0.55% Q2FY27 credit-cost reading changes after the 0.42% H1FY27 outcome, as the presentation gives no reason for the quarterly increase. Readers can also track agriculture, where H1FY27 fresh slippages rose to Rs 1,634 crore, and the 4.88% personal-loan GNPA ratio, the highest among the four retail products BOB disclosed at September 2026.

Frequently Asked Questions

BOB reported a GNPA ratio of 1.78% in Q2FY27. It was down from 1.99% in Q1FY27 and 2.16% in Q2FY26. Its NNPA ratio was 0.37% at the end of Q2FY27.

BOB reported credit cost of 0.55% in Q2FY27, compared with 0.29% in Q1FY27. The presentation does not state a reason for the increase. The rise occurred even as the slippage ratio fell to 0.69% from 0.91%.

Agriculture, MSME and retail accounted for most of BOB's fresh slippages in Q2FY27. Their respective amounts were Rs 840 crore, Rs 839 crore and Rs 676 crore. Global fresh slippages totalled Rs 2,392 crore.

BOB reported Rs 1,240 crore of recovery from NPA accounts in Q2FY27. Including recovery in technical write-off accounts, total recovery was Rs 2,984 crore. Cash recovery plus upgradation amounted to Rs 2,255 crore.

BOB's provision coverage ratio was 94.65% including technical write-off accounts at Q2FY27. Excluding technical write-off accounts, the ratio was 79.48%. BOB separately reported an NCLT provision coverage ratio of 99.32%.