Bank of Baroda (BANKBARODA) Q2 2027 Earnings Call Transcript

Moderator: Good afternoon everyone and welcome to Bank of Baroda's Media Conference for its financial results for the quarter ended September 30, 2026. Thank you all for joining us. We have with us today our MD and CEO Dr. Debadatta Chand. He is joined by the Bank's Executive Directors and our CFO. We will start with introductions, then we have a short PPT followed by opening remarks by Dr. Chand and then the Q&A session. Chand sir, over to you.

Dr. Debadatta Chand: Good evening all my media friends. Again, thanks all of you for joining on this call. And as we are going to discuss the quarter ending September 2026, the results both on balance sheet and on the financial. Let me introduce the management team. I am D. Chand. I am the MD and CEO of Bank of Baroda. With me I have the Executive Directors. Mr. Lalit Tyagi is the Executive Director. He looks after the Corporate credit, International and Treasury function of the Bank. Then we have Mr. Sanjay Mudaliar. He is the Executive Director who looks after IT and the Retail assets and a couple of other functions. We have Mr. Lal Singh. He is Executive Director. He looks after the Recovery, the HR and also the Agri and MSME vertical of the Bank. And we have Madam Beena Vaheed. She looks after Compliance and control function including the Finance function, the CFO desk and also the Retail liabilities function of the Bank. And as you know, we have Mr. I V L Sridhar. He is the CFO of the Bank. With this now, I will hand it over to Mr. Sridhar to run through the presentation and then I will have my opening comments and then we will proceed.

I V L Sridhar: Thank you, MD sir. Good evening everyone. It is my privilege to present before you the financial highlights of the Bank of Baroda for the quarter and half year ended 30th September 2026.

At the end of Q2 FY27, the Bank's global business has crossed the milestone of INR 32 lakh crore and stands at INR 32.58 lakh crore, registering a YoY growth of 17.2 %. Our global advances have grown by 18.3% YoY, with domestic advances growing by 13.5% and international advances growing by 39.7%. Within the advances book, the Bank has continued to focus on RAM advances. Our organic retail book grew by 18.6%, agricultural loans by 19% and organic MSME by 21.3%. Corporate loans have grown by 6.3% YoY. Within the retail segment, we have seen a smart growth across the portfolio with auto loans growing by 27.8% YoY, mortgage loans by 20.3%, home loans by 14.6%, education loans by 9.9% and personal loans by 6.8%.

In terms of the deposit growth, our total deposits have grown by 16.4% YoY, with international deposits growing by 14.9% and domestic deposits by 16.6% YoY. The domestic CASA deposits have grown by 10.4% and term deposits have registered a growth of 20.5% YoY. As of 30th September 2026, the Bank's domestic credit deposit ratio has reduced by 323 bps and stands at 80.08%. Bank's domestic CASA ratio stands at 36.37%. With regard to our quarterly profitability metrics, our operating profit for the quarter stands at INR 11,430 crores, registering a growth of 50.9% YoY. This is the highest ever operating profit posted by the Bank. Our net profit for the quarter grew by 35.8% YoY and stands at INR 6,532 crores. Again, this is the highest ever quarterly profit posted by the Bank. Return on assets stands at 1.26%, improving by 19 bps YoY. Return on equity stands at 19.28% for Q2 FY27, increasing by 363 bps YoY.

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In terms of the profitability for the half year, our operating profit stands at INR 19,557 crores, registering a growth of 23.7% YoY. Our net profit stands at INR 7,810 crores for the half year ended 2027. Return on assets stands at 75 bps for the half year. Return on equity stands at 11.63% for the half year. With regard to key ratios, our Yield on Advances increased by 4 bps sequentially and stands at 7.41 % for the quarter. It stands at 7.39 % for the half year. Bank's Cost of Deposits for the quarter stands at 4.71%. It stands at 4.68% for the half year. Our Net Interest Margin stands at 2.74% for the quarter and 2.76% for the half year.

Now, we come to the asset quality of the Bank which remains robust. Our gross NPA ratio improved by 38 bps YoY and stands at 1.78%. Net NPA ratio also reduced by 20 bps YoY and stands at 37 bps. Bank's balance sheet continues to be robust with the healthy Provision Coverage Ratio (PCR). PCR with technical write-offs improved by 144 bps to 94.65%. Our slippage ratio for Q2 FY2027 has reduced by 22 bps YoY and stands at 69 bps. It has also reduced by 23 bps YoY for half year and stands at 0.67%. The bank has made prudent provisioning to strengthen the balance sheet. Therefore, the credit cost for the second quarter stands at 55 bps. The credit cost for the first half stands at 42 bps. The credit cost without the prudential provision would have been 18 bps. Coming to our SMA and collection efficiency, our CRILC SMA 1 and 2 percentage of our standard advances reduced to 0.06% as of September ‘26 as against 0.39 % for September ‘25. Our collection efficiency excluding agriculture remains robust at 99.2 %. In terms of our capital adequacy, our capital position continues to be strong with CET-1 at 14.20%, Tier-1 at 14.70% and overall CRAR at 16.61%. Our quarterly average LCR remains healthy at approximately 133.6%. Over to Phiroza. Thank you.

Moderator: Thank you, sir. Chand sir.

Dr. Debadatta Chand: Okay. So, once again, thank you all of you and let me, based on the PPT presented by the CFO, make some specific qualitative comments on the financials. As you know, the Bank had a very strong quarter. I think this is one of the quarters where both on the deposit advances, we are possibly seeing, I mean, the same kind of a growth possibly in June 2023. So, almost more than 3 years possibly, we are getting a similar number of growth both on deposit and advances. As the CFO said, the global advances growth was 18.3%. The global deposit was 16.4%. So, this quarter, as you know, there was a specific scheme of FCNR and you will be interested to know the impact of FCNR both on the business, both on the deposit and advances. Even although there would have been a normal accretion during this time, but excluding that also, the Bank, suppose you exclude the FCNR on the impact both on deposit and advances, the global deposit growth was at 11.2% and the advances growth was at 13.5%, which is precisely in line with the guidance that we had given 10 to 12% for deposits and 12 to 14% for advances, excluding, I mean, the FCNR that we got a very strong response on the FCNR(B). True to our billing of India's international bank, the FCNR(B), we have received a strong response on the FCNR(B) almost to the extent of USD 8.08 billion. And that shows the customers’ faith in the Bank in terms of resilience, strength and also billing into our positioning as an international bank. Page 3 of 16

The domestic growth also similarly very strong. As you would have seen, the domestic deposit growth was at 16.6%. The international, I mean, global was at 16.4%, the domestic at 16.6%. And the domestic advances also, I mean, at 13.5%, which also, I mean, if you exclude FCNR(B) also is at the same level. CASA, this is the second quarter, possibly we are growing at more than 10%. And this is something I was telling all along, saying that because of our efforts to improve service delivery, bundling, and attractiveness of the product, we are getting a good response on CASA. And I think if you compare the CASA growth of Bank of Baroda for last many quarters, I think we are able to be better than the median of public sector banks and particularly in comparison to large peers. Similarly, the FCNR(B), we are showing you separately in the presentation, because that's something gives like, if you include that in the retail deposit, the growth would have been significantly higher. But excluding that also, the growth in our retail deposit was almost 8.3% and bulk also contained at 14.5%. A couple of things again on the profitability front, you would have seen one of the highest profit that we had in last many years, INR 6,532 crore is, I think, as the CFO said, one of the best quarters we had in last many, many years. I mean, if you look at the NII growth, it has been positive at 9% YoY for quarter, 9.2% YoY for half year, both, I mean, the same growth both for quarter to quarter, I mean, quarter on a YoY and also half year on a YoY. The operating profit has been very strong. The NII, there's a positive growth. And even if the operating profit of INR 11,430 crore, if you exclude, because as you know, there is a sale of NSE, which has given a positive, I mean, profitability from the sale of NSE, both in terms of the cash profit, we got almost INR 1,340 odd crore. Similarly, there is a valuation gain also. If you exclude that also, the operating profit, I mean, would be at INR 7,749 crore, which is again above INR 7,000 crore. So, what I meant to say, the operating core matrix of the Bank continues to be very strong. We are able to, I mean, quarter to quarter we are able to perform in terms of the core operating profit, the core strength of the Bank. The margin, if you look at, it was at 2.74% for the quarter, but we had given a guidance of 2.75 to 2.95%. But if you take the half year, it is at 2.76% , which is precisely in line with the guidance. And when you see the interest rate outlook, both for Q3 and Q4, I think the margin will be upward by significantly and will be within the range that we had guided. Asset quality continues to be the pristine in the way that, I mean, all the asset quality parameters, if you look at, if you look at the CRILC data, the recovery, the cash recovery and the upgradation, if you look at the numbers, it is better than the last quarter and also same quarter last year in terms of number. The fresh slippage has been lower than the same last quarter and also the same quarter last year. The CRILC data, as I said, SMA 1 and 2 at 0.06%, which is better than 0.07% in the last quarter. Collection efficiency excluding agriculture at 99.22%. The slippage ratio is at 0.69%, although we give a guidance of 1 to 1.25% and last quarter it was at 0.91%, better than that. As the CFO said that the credit cost at 0.55% excluding the prudential provisioning, it is at 0.18%. So, let me cover the prudential provisioning part of it. We have almost made INR 1300 crore of prudential provisioning on the NPA and bad debt, need-based prudential provisioning, considering our roadmap for ECL migration. Mind you that we also had a floating provision of almost INR 2500 crore earlier. So, the Bank is buffering it, balance it in terms of our ECL migration and that is what we have made. We have also made a contingency provision of INR 300 crore, I mean, over and above INR 1300 crore, typically to take care of the change in valuation on the, both in terms of the debt market and equity market, which continues to be volatile. So, roughly around INR 1600 crore, both in terms of I mean, Page 4 of 16

the NPA provision and also the contingency provision we have made cushion in the balance sheet to take care of the future requirement as far as the provisioning requirement is concerned. With this, the net profit at INR 6,532 crore. Again, this is the first quarter in many quarters, like this is the highest ever rather, we exceeded INR 6,000 crore of net profit. If the prudential provisioning is not done, the profit would have been higher, but then the prudential provisioning has been made just to take care of our migration towards ECL to buffer the balance sheet. The capital continues to be strong at 16.61%. Two more points I will just cover before I end my and give you the guidance with regard to the Bank’s balance sheet. One is that the bob World 2.0 has gone live in this quarter. And the bob World 2.0 has many unique features in terms of, I mean, voice, I mean, communication there in the bob World 2.0. And also, it is AI powered. Similarly, on the Cybersecurity, we announced a mascot called Cyber Veeru and that is getting very well received. Earlier also, I said that on the cyber threat, we need to have the literacy part taking it to the customers and we have been very aggressively pursuing the bob Cyber Veeru as a concept to create cyber awareness. Let me create a couple of, I mean, give the guidance that we had given last time and this time. As far as credit growth is concerned, we had given a full year guidance of 12 to 14% last time. We are upsizing that guidance from 12 – 14% to 13 – 15%. So, let me repeat on the credit growth from 12 to 14% guidance, we are upsizing that to 13 to 15%. Similarly, the deposit guidance we had given 10 to 12% we are upsizing that to 11 to 13%. That means 1% both up in deposit and advances. Our margin guidance on the NIM continues to be same 2.75 to 2.95%. As I said, we are slightly more positive towards an upward bias on the margin both in Q3 and Q4. The credit cost continues to be less than 0.6%. The slippage continues to be 1 to 1.25%, although we have been performing much, much better for last many quarters, maybe 10-12 quarters. On the ROA front, last time we put the ROA guidance on hold. Let me articulate that. For Q3, Q4, we will continue to have a ROA above 1%. As you know, June there was a, because of the settlement issue, the ROA went down significantly. So, as against a full year guidance, what we say that this quarter it has been 1.26%. But full year for Q3 and Q4 also we expect the ROA to be more than 1%. On a full year basis, we will try to be near to 1%. So, this is what a ROA guidance which I put on hold last quarter and ROE guidance continues to be 15 to 16%. With this again, thank all of you for joining for the call today and we are open for question and answer now.

Moderator: Thank you, sir. If you have a question, please raise your hand and we will come to you. The other option is for you to type your question in the Q&A box. We will start the first question from Joel Rebello of The Economic Times.

Mr. Joel Rebello: Hello, can you hear me, sir?

Dr. Debadatta Chand: I can hear you, Joel. Please go ahead.

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Mr. Joel Rebello: Sir, congratulations, very strong set of numbers. I have a couple of clarifications before I come to the questions. Besides this NSE stake, is there anything else in the other income? Just wanted to clarify, because this is a big number, other income has gone up sharply. So, just wanted to clarify that first.

Dr. Debadatta Chand: Okay. It is only NSE is one off, nothing else. Remaining all balance sheet items.

Mr. Joel Rebello: Okay. So, that is the main reason. And even the provisions have gone up mainly because of the prudential and contingency that you all made. This is about 1600.

Dr. Debadatta Chand: That is right.

Mr. Joel Rebello: Correct. So, just to get my math right, sir, 1300 + 2500 floating you all had. So, we should add these two. So, it becomes 3800. Or separate?

Dr. Debadatta Chand: No, no. I mean, buffering balance sheet will create cushion. Actually as you migrate, at that time, we will just decide, I mean, floating would be clearly absorbed in the ECL migration itself. Otherwise it cannot be used. But other provisions we will use at different point of time. So, we are buffering the balance sheet in terms of ECL migration. That is what I said.

Mr. Joel Rebello: For the ECL migration. Is this the first time you will have done for ECL migration, sir?

Dr. Debadatta Chand: No, no. ECL, I said floating provision we have been making for quite a few quarters and not the first time for the ECL migration. As far as the prudential provisioning since we had a one off in terms of NSE, so we thought fit to have a prudential provisioning just to take care of the requirement of provisioning.

Mr. Joel Rebello: Okay. Okay. Okay. Okay. Now, coming to my question, sir, what is the reason why you all upped your credit and deposit growth because you normally stick to your, this, what is the reason, why it gives you this confidence?

Dr. Debadatta Chand: Look, the June quarter also we had a very strong quarter. Almost the growth was above 15% on the advances side particularly and the deposit was near to 15%. So, June we had a strong quarter, which normally is a slow quarter for us in earlier years.

Secondly, this quarter in case you take the FCNR, the impact, the growth has been almost at 18% on the advances. Deposit is also 16.5% or 16.4%. So, obviously, on the slack season, we have two very strong quarters. Obviously, busy season, we normally do better. So, obviously, the natural outcome is to upsize the guidance. Page 6 of 16

Mr. Joel Rebello: Okay. Okay. Sir, also to get my ROA number right, you said ROA will be above 1% for the full year?

Dr. Debadatta Chand: I said we put the ROA guidance on hold last time when I announced the June because we had a significant impact on the profitability because of the settlement. So, what we are saying that the Q3, Q4 we will hold the ROA guidance in excess of 1%, right? And while you, because we had a lower ROA in the June quarter, full year basis will try to be near to 1%. I am not saying full year would be in excess of 1%, right.

Mr. Joel Rebello: Okay. Okay. Sir, we are in a volatile time. International geopolitics, domestically, inflation is up. There are some job losses also. Some States are also suffering from drought. We are not too sure of the monsoon and its effect. In this scenario, just an outlook, I know that you’ll have relied on the first two quarters of performance to up your forecast, but just an outlook on what is the pipeline looking like and from where you expect demand?

Dr. Debadatta Chand: If you look at Bank of Baroda, I mean, we typically, the December quarter and March quarters are the busy season quarters and we normally perform very strong in these two quarters. Considering of, I mean, the headwinds that you talked about in the current scenario, particularly at the retail growth it is still continuing to be almost, my RAM growth is almost 18 to 20%, the retail growth is 18.6%, MSME 21.3%. So, in that scenario, I do not think a challenge in terms of the geopolitical impacting, I mean, this industry in a big way where the growth can be less. I was just seeing some of the GDP for, I mean, the next quarter it is coming at 7.6% somewhere. So, now actually, one thing that this year, the FCNR(B) has given, induced a significant liquidity within the Bank. In Bank of Baroda, rather we have not utilized full liquidity, we have stored deposits, suppose I put it in that word, stored liquidity rather in that way. So, this we used to fund the advances both in December and March. So, considering on the scenario, we are quite hopeful that overall 13 to 15% for a full year basis and in the same way, like on the deposit up to 13% we will be in a position to achieve and that is what our normal trajectory as on today, talks about with regard to the numbers there.

Mr. Joel Rebello: Okay. Sir, my final question, you know, this case in the UAE with B. R. Shetty and they have said that they have filed suits, you know, and there are lots of media reports also. I know that you all have issued a statement yesterday; you all settled this case earlier. I am assuming that there was a point where and you all also made a party to it. So, you all had to settle it. But now that he is also claiming more, he is basically claiming more from the bank and he is saying that he is claiming just your comments on what, how are you’ll looking at it. I know that you will have said that you will have still not seen the suit or the filing, but just your comments sir.

Dr. Debadatta Chand: Precisely, expecting this we had given the, I mean, the exchange notification yesterday, right. Mr. Joel Rebello: Yes sir. Dr. Debadatta Chand: So, untested allegation, we cannot comment as a principal on untested allegation. Secondly, the case, the same case is sub-judice in on the overseas UAE vis-a-vis the principal Page 7 of 16

individual. As well I also said our recovery action against the principal individual will continue. So, we stand at the same level as on today as you speak.

Mr. Joel Rebello: Thank you, sir. And all the very best for the rest of the year.

Dr. Debadatta Chand: Thank you very much.

Moderator: Thanks, Joel. The next question is from Ashish Agashe of PTI.

Mr. Ashish Agashe: Thank you so much, Phiroza. Hope I am audible, sir.

Dr. Debadatta Chand: You are audible, Ashish. Please go ahead.

Mr. Ashish Agashe: Yeah. Sir, how much of the USD 8.08 billion has been deployed as of now? Because in the investor presentation, there is a INR 60,000 crore mention of a leveraged loan book as well. So, how much of it is deployed? How much of it do you plan to deploy? Is there some cutting of high-cost deposits as well, which you have done? How is it, sir?

Dr. Debadatta Chand: No, you said right. Actually, I use a word called stored liquidity. So, as on today, in terms of the money that we received out of FCNR(B), which is converted into a rupee through a swap rule, almost INR 74,000 odd crore, INR 75,000 crores, mostly that we have stored liquidity at some, I mean some form. And that is going to be utilized in the December quarter and March quarter. So, in that way, the reduction in bulk deposit, because you can reduce bulk deposit to the extent of the repriced deposit, you cannot reduce the outstanding bulk deposit. So, the bulk deposit has seen some around INR 10,000 crores of reduction as on today as you speak for September. But a significant bulk deposit can also be, I mean, on repricing, we may not contract them at a higher rate. And this liquidity is going to help to reduce those; that can happen in the December quarter.

Mr. Ashish Agashe: Okay, Sir. And, Sir, Joel had also asked this, what is the pipeline of corporate loans which you see going ahead where significant amount of these deployments would be probably happening? And which sectors are you seeing the demand, Sir?

Dr. Debadatta Chand: See, as I said, our Retail and Agri continue to be around 20%. It has been that for last many quarters. If you look at the MSME growth this time, and it is also for past few quarters, it is almost at slightly above 20%. This quarter it is 21.3%. If you look at the Corporate, that we have given at 6.3%. June it was 15.3% almost, the corporate growth. The core corporate has grown almost by 12%. The mid-corporate has grown by almost 26%. The only segment where there is some kind of a de-growth or a lower growth is on the fine-price asset book, right. Obviously, when the rate transition is happening, we wish to pass on. In case we are not able to pass on, possibly we will not like to contract it. So, in that scenario, the corporate has seen a 6.3% growth. Page 8 of 16

As on today, if I look at the pipeline, almost we have INR 60,000 crore plus pipeline with us with regard to, I mean, to be processed not sanctioned, sanctioned not disbursed, so there is a strong pipeline.

Secondly, we had given guidance earlier also, which we still stick to it. For a full year basis, on the corporate loan book, we are expecting more than 10%. So, considering that, the demand is there in the market. MSME, the demand is very strong supported by a couple of government initiatives with regard to the guarantee scheme and all those. And I think the demand on the corporate or the midcorporate or the MSME continue to be strong for December and also for March.

Mr. Ashish Agashe: Okay, Sir. And, Sir, what is the estimate of money required for the ECL transition? And subsequent quarters, would we also see some elevated provisioning on a prudential basis, possibly?

Dr. Debadatta Chand: See, ECL, last time we said there is a one-time impact on the CRAR and there is a recurring impact on the, I mean, credit cost. One-time impact, last time we said it would be almost like 125 bps, right. And that roughly translates to INR 12,500 crore on a thumb rule basis.We are already holding a floating provision of almost INR 2,500 crore, which can be adjusted as per the guidelines, right. So, in that way, the remaining impact on a 5-year basis can be 20-25 bps at best, right. Secondly, on the recurring impact, which can elevate the credit cost, there are two calculation - one is a gross basis and then there is a net basis. So, gross we expect the credit cost can go up to the extent of 30-35 bps and net we can expect between 20-25 bps. Our credit cost guidance has been 0.6%, we are holding since long. This quarter, if you exclude the prudential provisioning, the credit cost is at 0.18%. Earlier also we said, within our guidance we will be in a position to absorb the impact of the ECL.

Mr. Ashish Agashe: Okay, Sir, thank you so much. I will come back.

Dr. Debadatta Chand: Thanks, Ashish.

Moderator: Thanks, Ashish. The next question is from Abhijit Lele of Financial Express.

Dr. Debadatta Chand: Yes, Lele Sahab, please go ahead.

Moderator: Sir, you'll have to unmute yourself.

Mr. Abhijit Lele: Yes, good evening. I will straight come to the FCNR(B) deposits accretion. How much actually you have given the loans to the NRIs to make the FCNR(B) deposits? That is, you have raised about USD 8 billion odd, so for that how much of loans actually have you given from your international Page 9 of 16

branches? That was one question. The second was about your ECL prudential provisioning that you have done as a roadmap. Would that be like every quarter now you will try to find out some ways to build that kind of a prudential norm so that your transition becomes much and much easier? Those are 2 queries.

Dr. Debadatta Chand: So, thank you Lele Sahab. On the FCNR(B), look, the loan or the leveraging is part of the scheme itself. So, let us not segregate the deposit and the overseas loan. So, we have mobilized USD 8.08 billion of FCNR(B) deposit and 70% of that would have been a leverage, I mean, advances which would have come as a deposit therein. So, that's there in, I mean, all the banks and all the system and the leverage is part of the scheme itself. I mean, let me make it clear on this. So, 70% of that would have been the leverage, I mean, loan which from the international the money would have come to India as FCNR(B) deposit. And the leverage is part of the scheme, that is what I can say. Prudential provisioning, let's say, the ECL migration glide path had come long back.

Mr. Abhijit Lele: Correct.

Dr. Debadatta Chand: And we have been trying every time to buffer the Balance Sheet in a different way, if there is a leeway for us to do that. The floating provision of INR 2,500 crore was created precisely for the ECL migration, which can be adjusted as per the regulatory guidelines. This quarter, NSE had given us a good, what you can say, optic with regard to the profitability, allowing us to make a prudential provisioning keeping the ECL or multiple other issues in mind. So, in that way, whether we do it every time, that depends upon the availability of resources within the profitability matrix of the Bank. But, obviously, strengthening the Balance Sheet, creating buffer is always in our mind and we'll keep on looking at opportunity to create and strengthen it further.

Mr. Abhijit Lele: Okay. So, coming back talking to FCNR(B), RBI gave you the swap sort of support, but the interest element remains the liability or responsibility of the banks. So, as far as on the USD 8 billion, how much exactly is the annual interest outgo where you face the currency risk also because that's not hedged by the RBI?

Dr. Debadatta Chand: Look, Lele Sahab, actually this is a technical question, but I can answer in technical. Look, let's say, on USD 8 billion you pay at 6.5% or 6.75%, whatever the peak rate.

Mr. Abhijit Lele: Okay.

Dr. Debadatta Chand: USD 350-USD 400 million would be the interest component per year, right.

Mr. Abhijit Lele: Yes.

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Dr. Debadatta Chand: In case, you say 70% of this money is leveraged, then obviously you're going to get those interest at that time. So, you're not running a currency risk. The balance you are running a currency risk, right.

Mr. Abhijit Lele: Yes.

Dr. Debadatta Chand: So, look at opportunity to hedge this risk also. So, in that way, I mean, the banks are active player in currency market since decades, so we'll be managing this issue definitely in a proper manner.

Mr. Abhijit Lele: Means what I understand is that the interest rate obligation which is coming out of interest rate part is limited, which can be managed.

Dr. Debadatta Chand: I mean, on the deposit I have to pay interest. At the same time, on the leverage advances, I'll receive interest, right.

Mr. Abhijit Lele: Correct.

Dr. Debadatta Chand: So, the interest, you knock it off. So, the balance, that we need to think of hedging or something else, is 30%.

Mr. Abhijit Lele: Okay.

Dr. Debadatta Chand: As such on ongoing basis, and being an international bank, we have normal accretion of foreign currency. So, since I have converted into rupee, I'm not running a risk per se, but in case there is a requirement of hedging it, we'll hedge it. But current market is not, I mean, proper now. But in case there is a market opportunity, we'll also try to hedge that.

Mr. Abhijit Lele: Okay, fine. So, it's manageable, I understand that. Okay, Sir. Thank you.

Dr. Debadatta Chand: Our Risk team does evaluate all these aspects and put that into strictly within control limits.

Mr. Abhijit Lele: Okay. I'm done with my queries. Thank you.

Moderator: Thank you, Sir. Sir, we have a few questions, I think we'll first go to Piyush; Piyush Shukla of ET Now. Yeah, Piyush.

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Mr. Piyush Shukla: Thanks for taking the question, Sir. First is, the banks saw data leak happening, a lot of customer data got leaked on the dark web, internal bank audit, lots a lot of them were leaked and these are very sensitive private details, bank statements, residential proofs. I want to understand, Sir, there are some other banks also, large banks, who have seen these sort of things happening in the recent months. From a Bank of Baroda perspective, what are you doing to make sure this does not repeat and take corrective action? What is the corrective action that you have taken? And have you reassessed your processes? I have one more follow-up.

Dr. Debadatta Chand: Yeah, Piyush, you said right with regard to the incident that happened and we also, at that time, articulated. And the response of the Bank has been strictly as per the protocol in terms of strengthening forensic audit. I mean, we got the entire security architecture revamped, in the sense reviewed and revamped. So, we have taken multiple measures on the technology front just to address with regard to the cyber threat. And since you are referring the system issue, it's not specific to a bank, actually the system is exposed to cyber risk, right.

Secondly, with regard to the specific that you talked about the data. We said earlier, I mean, large percentage of data are unusable data. Only a very small data out of the 1 TB, that you are referring, may be a customer data which is a disaggregated data already available in public domain. But we followed all the protocol or SOP in a similar situation which is followed globally, in terms of reaching out to customer, putting enhanced layer of protection to those customers. And these are, again, not any disintegrated data but already somewhere available within the public domain, maybe in different place. So, in that way, the customer impact was not anything, it was very negligible. But the bigger issue is to how do you strengthen the system and procedure, you said right. Bank initiated multiple measures in terms of engaging consultant, revamping the security architecture. Multiple things were done to prevent any such incident happening in the future.

Saying so, going by the, I mean, daily news that we read in multiple events happening here and there, we're always on a heightened alert, and we revamp the security architecture to prevent any such incident happening in future. We are always on alert. We are investing also additional resources to strengthen the security architecture, including cybersecurity architecture. And I think globally also you look at this particular news, it's a burning news and we're all fighting the issue so that the customers are totally protected in terms of all these threats.

Mr. Piyush Shukla: Sir, one parameter, Cost-to-Income ratio has come down quite sharply both on a YoY and a Q-on-Q basis. Is this because of the investments you are making in the IT systems? Essentially, what is driving this lowering of Cost-to-Income? And by next financial year or in this current financial year end, where do you expect the Cost-to-Income ratio to be?

Dr. Debadatta Chand: Look, on a terminal number which we have presented, 42%, I think it's a golden number in that way. So, every bank would like to be at 42%. But then, this quarter because of the NSE one-off, we have seen this, I mean, although full NSE benefit we have not taken into books, we have rather made prudential provisioning but then the impact is definitely pulling down the Cost-to-Income ratio.

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Our normal target is to be below 50% Cost-to-Income at all point of time. Couple of quarters, we have been successful doing that, couple of quarters at times there is some settlement, I mean, the employee settlement and all those and it goes up to 50%; the wage settlement I'm talking about. So, in that way, efforts are to keep it below 50% but I wish it to be somewhere; because we have invested, I mean, a couple of things that we have done in the past, investment on technology, so is to improve productivity. We are also working for a transformation exercise to revamp the branch modeling so that the productivity goes up and the ease of delivery is easier. In that way, we'd like to get into a 48% level. But the normal guidance we give that we need to keep it below 50%.

Mr. Piyush Shukla: And, Sir, finally, this proposed insurance commission and distribution norms by the IRDAI, what is the view that you have with regard to the proposed norms? If it comes as is, what would be the quantum or what would be the value that you feel could be impacted? Couple of other banks have said not that much. Both in terms of feedback, Sir, your views on that and potential impact if it comes as is?

Dr. Debadatta Chand: Look, it's insurance sector guidelines, right. So, I am not an insurance company, but have promoted insurance company and we do the distribution. So, obviously, the entire discussion, it's a draft and final is not issued. But in case the distribution commission is reduced, obviously there would be impact. But as a wealth business and a wealth income, we have not very significant wealth income. If you look at comparatively, we are at a much, much lower scale. I would say within my PSU peers also I am at a lower scale. So, in that way, the impact will be less for us, but there would be impact if there is a commission rationalization happening; particularly on the distribution income there would be impact. But I cannot quantify at this stage what is the impact but there would be impact on that.

Mr. Piyush Shukla: Thank you, Sir. Thank you, Phiroza.

Moderator: Okay, thanks, Piyush. Sir, we have 3 questions from Ram Kumar of The Hindu Business Line. He has typed them in. The first one is, will you be able to sustain the current profitability growth in the next few quarters in a rising interest rate environment? The second question is, given that liquidity surplus in the banking system has shrunk and credit demand is holding up, do you expect deposit rates to go up? And the third was, he wanted a clarification on what our corporate credit pipeline is.

Dr. Debadatta Chand: The first is on the sustaining profitability. Excluding the one-off, which again we have not taken the full one-off into profitability, we have made prudential provisioning to the extent of INR 1,600 crore. That's why I had given number on the Operating Profit excluding the NSE impact. Operating Profit was INR 7,749 crore. And if you look at our Operating Profit, this is something INR 7,000 plus we have been posting for last many quarters. So, taking that as a number we'll definitely, I mean, my expectation that we'll sustain for quarter to quarter, one.

Secondly, as a margin guidance, when I look for Q3 and Q4, these are going to be positive margin guidance. Why? Because the repo has been increased from 5th October and my 38% of the book, which Page 13 of 16

is linked to the repo, has been reset at a higher, what you can say, rate of interest of quarter percent. Similarly, a lot of sub-MCLR or corporate book we were able to reprice them at a higher, what you can say, higher pricing. And for that reason, you would have seen a lower corporate growth because we have been very sensitive with regard to the pricing in the system and, consequently, what we charge to our customer.

You had another question on the liquidity. We have been prudent in terms of because we have a large FCNR(B) inflow and, consequently, generating liquidity out of the RBI window, we use a word called ‘Stored liquidity’. So, we have kept liquidity for supporting our advance growth both for December and March. In that way, our guidance, everything, I mean, liquidity is not a challenge rather our prudent management is going to help us in terms of upsizing our advance growth.

And corporate, as you said, I earlier also said, 6.4% is the corporate growth, but within that the midcorporate growth is 26%. The core corporate, which is non-PSU, is almost at 12%. The segment which has seen bit of a degrowth is because of the pricing. They're very high quality asset but, obviously, would demand a better pricing. So, on a pipeline scale, we are almost holding more than INR 60,000 crore of pipeline in terms of a, I mean, application being processed not sanctioned, or sanctioned not disbursed. In that way, I think a stronger growth going to be in Q3 and Q4.

Moderator: Thank you, Sir. Next question is from Shristi Sharma of ET BFSI. Shristi.

Ms. Shristi Sharma: Thank you, Phiroza. Good evening, Chand Sir. Most questions are answered, however some specific ones. MDR will soon come into force, did you happen to calculate how much of a cost benefit will it result you into?

Dr. Debadatta Chand: Shristi, with regard to MDR, now it has been deferred, point one. Secondly, we will give you the timelines as a participant therein, but currently it is not in place. Secondly, I also said earlier, post the MDR announcement whatever benefit the Bank of Baroda is going to get out of MDR, again, 95% are not covered. The P2 merchant also, I mean, substantial exemption therein. Only a segment, very small segment, would be impacted because of this MDR. But this is a money required for us to invest into technology. So, as Bank of Baroda whatever money we'll be getting out of this, will be reinvesting into technology to improve the customer experience. So, in that way, I think it's a very good move to strengthen the…We need to take the UPI to the next stage. In case you need to take to the next stage, we need to invest more and more into the UPI ecosystem and the infrastructure. And this is what a decision is taken and I think whatever benefit the Bank is going to get, we are going to reinvest the same money in the UPI rail itself, nowhere else.

Ms. Shristi Sharma: Noted. Sir, 2 more questions. Will you be looking to tap ECB, OFCB, RBI window? And third, Sir, on your credit card subsidiary, could you give some outlook on what are the growth numbers that you are foreseeing by the end of this fiscal? What are the trends you are seeing? Any new segments that you'll be entering into? How is the whole subsidiary doing, Sir?

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Dr. Debadatta Chand: Your first question was with regard to what?

Ms. Shristi Sharma: ECB, OFCB.

Dr. Debadatta Chand: See, already USD 1.1 billion we have raised and we have a USD 4 billion mandate we have announced. But then, obviously, the pricing is not right at this stage. The pricing, I mean, looking at the global what is happening in US Treasury and something, if there is a pricing better and we are in a position to deploy that at a gainful spread, I mean, then we'll definitely tap it. But as on today, we have raised USD 1.1 billion, we have a mandate up to USD 4 billion and the window is still till December. So, there is time available for us to take a call on the matter.

Credit card, you said right, Bank of Baroda is one bank, possibly the second bank, to have a card business outside the bank. And card off late has been one of the key theme as far as the Bank is concerned and the industry is concerned. I will just give you one data point. There was a recent report where on the acquisition scale this card company in terms of acquisition is the 4 th maximum in this year. I mean, their incremental addition has been the 4th best. So, in that way, there is an adequate focus on this. Again, we want to take the card company to the next level. We are putting some new strategy, the new vehicle therein, so that we can have a significant growth in the card business. This company is going to get much more attention as far as the bank is concerned because we strongly believe that card there is a significant potential to upsize the business. And going by the customer base, which Bank of Baroda has, I think there is a significant possibility, potential to have a good business on the card segment.

Ms. Shristi Sharma: Sir, any issuance, credit card issuance, number that you're looking at by the end of this fiscal? Or if you could also talk about the outstanding book that exists as of now and the target that you have by the end of this year?

Dr. Debadatta Chand: Readily data, I think Mr. Mudaliar or Mr. Tyagi, anybody can respond to the number. I don't have immediate recollect on the number.

Ms. Shristi Sharma: Sure, Sir.

Dr. Debadatta Chand: Hold on, just I ask the question to Mr. Tyagi. Mr. Tyagi, do you have the number?

Mr. Lalit Tyagi: So, right now, unfortunately, I do not have the ready-made numbers. But one thing I can say that, as MD Sahab has said, that this company has garnered on a net basis 4th largest acquisition, and probably we are putting up another set of strategies how they can leverage the Bank of Baroda franchise to increase the scale of the card distribution. And card being one of the important product which is aligned with the Retail liability distribution also. So, that remains one of the focus area for the Bank also, apart from the subsidiary.

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Ms. Shristi Sharma: Okay, thank you. Sir, one more point on acquisition financing. You've already done some transactions over there, any more in pipeline? Any quantum you could give or how is it going? Any more partnerships that you are looking at?

Dr. Debadatta Chand: Mr. Tyagi, can you take this question?

Mr. Lalit Tyagi: So, as of now, in domestic market we have not funded any acquisition finance. However, in the overseas market, we are doing it for several years. In domestic market, we are in discussions with a couple of possible potential transactions. We have announced our partnership with one Japanese bank, Mizuho. And jointly as well as on our own, we are exploring. We hope to have some, you know, traction on this in coming quarters.

Ms. Shristi Sharma: Right. Thank you. Thank you, Chand Sir. Thank you, Lalit Sir.

Dr. Debadatta Chand: Thank you.

Moderator: Thank you, Shristi. Sir, just last couple of questions. One is on what is the impact of maintaining 99% of CRR on the Bank? And whether there is any impact envisaged of El Nino on Agri book, Sir?

Dr. Debadatta Chand: So, on the CRR 99%, I mean, this is with regard to absorbing the liquidity from the system from the Reserve Bank of India. And actually, at the end of the day, you have to maintain the CRR know. Earlier also we used to maintain CRR; only on the everyday basis you have to maintain a higher level of cash balance. So, maybe around INR 2,000-INR 3,000 crore is the impact, which is not very significant as far as we are concerned. El Nino, look, the impact of the El Nino more particularly on the Agri sector and consequently related sector, actually, many of the state like we are SLBC in 3 states. So, in consultation of the government, the SLBC would take the right call on the decision and definitely as a Bank we will be guided by that. So, if there is impact particularly on the sector like Agri, then possibly the SLBCs are empowered in discussion with the State government to take the right call on the matter so that the customers are taken care.

Moderator: Thank you, Sir. I think that is the last question that we have today. Thank you all for joining us. Have a good evening.

Dr. Debadatta Chand: Thanks. Thanks, Phiroza. Thanks, all of you. Thank you very much.

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Bank of Baroda Analyst Meet for Quarter and Half year ended 30th September 2026 30th October 2026

Participating members from the Management Team of the Bank ➢ ➢ ➢ ➢ ➢ ➢

Dr. Debadatta Chand, Managing Director & CEO Mr. Lalit Tyagi, Executive Director Mr. Sanjay Vinayak Mudaliar, Executive Director Mr. Lal Singh, Executive Director Ms. Beena Vaheed, Executive Director Mr. I V L Sridhar, Chief Financial Officer (CFO)

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Moderator: Good evening, everyone, and welcome to the Analyst Meet to announce Bank of Baroda's financial results for the quarter ended 30th September 2026. Thank you all for joining us. We have with us today our MD and CEO - Dr. Debadatta Chand, and we are also joined by the Bank's Executive Directors and our CFO. We will start with introductions followed by a short PPT, followed by Chand Sir’s opening comments and then we will move on to the Q&A session. Chand Sir, would request you to please continue. Dr. Debadatta Chand: Thanks, Phiroza. Good evening to all my analyst friends who have joined on the call today and thank you very much for joining the call for the financial outcome of the Bank for September quarter. Let me introduce the management team. I am D. Chand, MD and CEO of Bank of Baroda. With me, we have Mr. Lalit Tyagi. He is the Executive Director. He looks after the Corporate credit, International banking and Treasury. And we have Mr. Sanjay Mudaliar. He is also Executive Director. He looks after the IT, the Retail assets and couple of other functions of the Bank. Then we have Mr. Lal Singh, Executive Director. He looks after the Recovery, the HR vertical, the MSME and Agri vertical of the Bank. And we have Madam Beena Vaheed. She looks after most of the Compliance and Control function, including the Finance function or the CFO desk and also the Retail liabilities of the Bank. And as you know, we have the CFO, Mr. I V L Sridhar with us. So, I would hand it over to Mr. Sridhar for a short PPT and then I will come back with my comments on the result. Mr. Sridhar. Mr. I V L Sridhar: Thank you, MD Sir. Good evening, everyone. It is my privilege to present before you the financial highlights of Bank of Baroda for the quarter and half year ended 30th September 2026. As at the end of Q2 FY 2027, the Bank's global business has crossed a milestone of INR 32 lakh crores and stands at INR 32.58 lakh crores, registering a YoY growth of 17.2%. Our global advances have grown by 18.3% with domestic advances growing by 13.5% and international advances by 39.7%. Within the advances book, the Bank has continued to focus on RAM advances. Our organic retail book grew by 18.6%, agriculture loans by 19% and organic MSME by 21.3%. Corporate loans have grown by 6.3% YoY. Within the retail segment, we have seen a smart growth across the portfolio with auto loans growing by 27.8% YoY, mortgage loans by 20.3%, home loans by 14.6%, education loans by 9.9% and personal loans by 6.8%. In terms of deposit growth, our total deposits have grown by 16.4% YoY with international deposits grown by 14.9% YoY and domestic deposits by 16.6%. The domestic CASA deposits have grown by 10.4% and term deposits have registered a growth of 20.5% YoY. As of 30th September 2026, the Bank's domestic credit deposit ratio has reduced by 323 bps and stands at 80.08%. The Bank's domestic CASA ratio stands at 36.37%. With regard to our profitability metrics, our operating profit for the quarter stands at INR 11,430 crores, registering a growth of 50.9% YoY. This is the highest ever operating profit posted by the Bank. Our net profit for the quarter grew by 35.8% YoY and stands at INR 6,532 crores. Again, this is the highest ever quarterly profit posted by the Bank. Return on assets stands at 1.26%, improving by 19 bps YoY. Return on equity stands at 19.28% for the Q2 FY 2027, increasing by 363 bps YoY. With regard to our profitability metrics for the half year, our operating profit stands at INR 19,557 crores, registering a growth of 23.7% YoY. Our net profit stands at INR 7,810 crores. Return on assets stands at 75 bps for the half year. Return on equity stands at 11.63% for the half year.

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With regard to the key ratios, our yield on advances increased by 4 bps sequentially and stands at 7.41% for the quarter. It stands at 7.39% for the half year. Bank's cost of deposits for the quarter stands at 4.71% and the same is at 4.68% for the half year. Our net interest margin stands at 2.74% for the half year and 2.76% for the, sorry, 2.74% for the quarter and 2.76% for the half year. In terms of asset quality, the asset quality of the Bank continues to remain robust. Our GNPA ratio has improved by 38 bps YoY and stands at 1.78%. Our net NPA ratio also reduced by 20 bps and stands at 0.37%. Bank's balance sheet continues to be robust with the healthy Provision Coverage Ratio (PCR). PCR with TWO, that is Technical Write-Offs improved by 144 bps YoY and to 94.65%. Our slippage ratio for Q2 2027 has reduced by 22 bps and stands at 0.69%. It has also reduced by 23 bps YoY for the half year and stands at 0.67%. The Bank has made prudent provisioning to strengthen the balance sheet. Therefore, the credit cost for Q2 stands at 55 bps. The credit cost for the half year stands at 42 bps. Credit cost without prudential provisioning for the quarter would have been 18 bps. Then coming to our SMA and collection efficiency, our CRILC SMA 1 and 2 as percentage of our standard advances reduced to 0.06% as of September 2026, as against 0.39% for September 2025. Our collection efficiency excluding agriculture remains robust at 99.2%. In terms of our capital adequacy, our capital adequacy position continues to be strong with CET 1 at 14.20%, Tier 1 at 14.70% and CRAR at 16.61%. Our quarterly average LCR remains healthy at approximately 133.6%. Over to you, Phiroza. Moderator: Thank you, sir. Chand Sir, would request you to make your opening remarks please. Dr. Debadatta Chand: Once again, thanks to all my analyst friends. Just to give a couple of qualitative statements here. You would have seen that the growth, is one of the strongest in many years now. Possibly, you would have seen a similar growth somewhere in 2023. Otherwise, the growth has been one of the strongest. This growth has been obviously with the FCNR(B) window, got a huge boost because of the FCNR(B). So, let me give some data without FCNR(B) because that's a number, you'd be interested to know. The global business, which is at INR 32.58 lakhs crore, excluding FCNR(B) both on the liability and asset, it is at INR 31.20 lakhs crore, which is still on a scale giving a growth of 12.3% excluding FCNR(B) both on asset liability. Similarly, if I exclude the FCNR(B) impact both on deposit and advances, still the global deposit growth was at 11.2% and the global advances growth was at 13.5%, which was clearly in line with the guidance that we had given earlier. FCNR(B), as we said, we have raised almost 8.08 billion USD. And rather prudently, we have not used the liquidity generated out of FCNR(B) in terms of immediate reduction in the deposit or any other form of deposits. Rather, we prudently parked this deposit. Rather, I would use a word called ‘stored deposit’ to take care of the future requirement of the liquidity for both the busy seasons, December and March quarter. CASA is again one of the strong points. We have been growing for both the quarters now, June and September, the growth has been more than 10%. The CASA percentage, because I would have been articulating since long to have a high focus on the CASA percentage, and you would have seen the CASA this time at 36.37%, precisely because we have raised a significant FCNR(B) deposit, which has gone to the term deposit. So, even if 36.37% is one of an absolute good number in the market, but if you exclude the FCNR(B), it would be in excess of 38.36%. So, our focus on CASA would continue. By Page 3 of 13

articulating this number, I want to again put emphasis that our focus on CASA would continue in terms of service delivery, product bundling, and multiple other service delivery points so that the CASA remains one of the strong points as far as the Bank is concerned. The NII growth, if you would have seen the NII growth has been positive at 9% and half yearly 9.2%. And this is something I'm trying to, I mean, give you a glide path saying that when you look at the margin of 2.74% for this quarter and 2.76% for half year, since the repo has been increased with effect from 5th October, already 38% of the book which is repo linked has already seen an upside in terms of the interest income. Our non-MCLR book in the corporate also, we have significantly repriced this advances in the recent past, like this September quarter. The full benefit of that is going to be felt in December quarter. Cost of deposits, although maybe slightly increased, but still because of the prevailing liquidity scenario, I think still it is contained. So, in that scenario, the margin guidance is 2.75% to 2.95% where, I mean, we are hopeful of achieving the higher band of the margin going forward. The profit again, Mr. Sridhar has told you about the operating profit, NII, there is a positive growth. The operating profit of INR 11,430 crores is one of the highest ever in the Bank. I mean, on the profit side, there is also one-off impact of the NSE sale. The NSE sale of INR 1,349 crores was a cash profit that we got. At the same time, there is a valuation gain. So, if you exclude the entire impact of the NSE on the profitability, still the operating profit is strong at INR 7,749 crores. I mean, in that way, the Bank, we have, I mean, if you look at the net profit again, INR 6,532 crores. This is after the, as Mr. Sridhar said, there is a prudential provisioning we have done in the balance sheet to buffer the balance sheet for future impact of ECL and similar other impacts. So, roughly around INR 1,300 crores of provisioning we have taken in on the NPA standard asset. These are the need-based specific prudential provisioning, plus roughly INR 300 crore of provisioning we have taken in the contingency provisioning, typically to take care of the fluctuation in the bond prices and the equity prices in the investment book. So, I think INR 2,500 crores is already a floating provision we are holding in the books. So, this is our efforts to strengthen the balance sheet, both in terms of availability of provision, so that future impact maybe of ECL or any other impact, the Bank is in a position to take it. The asset quality continues to be very strong. If you look at all the numbers, I am not going to tell, but then this number, whether it is a slippage ratio, credit cost excluding, I mean, the prudential provisioning at 0.18%, the CRILC data and the CRILC SMA 1 and 2 at 0.06%, the collection efficiency has improved. The slippage has been lower than the last quarter, Q1, and also the same quarter last year. The recovery has been better than the last, I mean, same quarter last year and also the previous quarter. The asset quality continues to be pristine in that way. But the provision increase, as I said, is not because of the asset quality issue. It is because of the prudential provisioning. Let us be very clear on that. Otherwise, the Bank's asset quality is very strong. And I mean, this quarter also the asset quality is very strong, but then the provisioning, I mean, increase is because of the prudential provisioning. A couple of things that I would like to highlight before I close is bob World 2 is a new app that, I mean, earlier also we talked about it, and this app has multiple new features powered by AI. Also, there is a voice feature over there that is unique to mobile banking as of today. At the same time also, there is a personal finance manager. I think the app has come on a totally different, and also it is persona based. So, in that way, this is one of the developments that in the quarter, that I wanted to highlight. At the same time for cyber security, we have a mascot called Cyber Veeru, and it is also creating the right digital literacy within the customer class. At the same time, we also ventured into two new Page 4 of 13

entities that we announced earlier also, BOB Securities and Giltedge Limited on the PD business and the DCM business, and the pension fund business. Let me again articulate the guidance now. The credit guidance earlier we had given 12 to 14%. We upsized the guidance to 13 to 15%. So as against 12 to 14%, we are now projecting at 13 to 15%. Deposits, earlier, we said 10 to 12%. We are now projecting at 11 to 13%. The NIM, we continue to maintain same from 2.75 to 2.95%, but as I articulated, I think there is an upside on the margin going forward as far as Q3 and Q4 are concerned based on the prevailing, the interest and also the asset liability structure, we do have. The credit cost continues to be less than 0.6%. This quarter is 0.55%, but excluding the prudential provisioning, it is at 0.18%. Slippage ratio is better than the Q1 of FY27 at 0.69%, but we continue to hold 1 to 1.25%. ROA, let me again articulate. Last time, I put the ROA guidance on hold considering June we had a significant dip on the profitability because of the settlement issue. This quarter the ROA is 1.26%. I think the next two more quarters, Q3 and Q4, we are expecting ROA to be more than 1%. On a full year basis, because June we had a lower ROA, we still are hopeful of a near 1% kind of ROA. But as we go forward, we will articulate more on the ROA. But Q3, Q4, based on the current profitability matrix, I think will be above 1%. And the ROE continued to be although we are at 19.28%, but the guidance is at 15 to 16%. So, with this, I end my initial remarks. Now we are open for question and answer. Moderator: Thank you, sir. If you have a question, please raise your hand and we'll come to you. You may also type your question in the Q&A box. In the interest of time, we would request you please keep your, limit your questions to two and we will come back to you if there's more time. The first question is from Mr. Ashok Ajmera. Mr. Ashok Ajmera: Thank you for giving me the opportunity. And congratulations, Chand Saab, and the entire management of Bank of Baroda for the fantastic quarter. I mean, very good set of numbers. Prima facie on record, I mean, even if you take FCNR(B), even if you take NSE profit, whatever you say, but the profit which looks on paper is to be believed INR 11,430 crores of the operating profit, one of the highest. And total business is also going to INR 32.57 lakh crores. I mean, the first public sector bank next to State Bank of India in terms of the ---- and the gap between the next bank and our Bank has increased substantially. So, barring that last quarter, that one time that provisioning hit you had to take, the result for the entire quarter and the half year are fantastic. Congratulations for the same. Having said this, Sir, I've got some few observations and some more clarifications, some elaborations on some of the points which you have covered in your initial address. One is that it's very good to know that you increased your credit growth target to 13 to 15%. So, if I take 15% growth for the whole FY27, then INR 2,14,000 crores of credit growth should be there. So, out of that, what we have done is because the first quarter was little sort of a minus or negative only as compared to the credit growth. So, what we have done is INR 82,000 crores growth. So, in order to achieve this target on the higher band, you need to look at INR 1,30,000 crores of the credit growth in the remaining six months period. So, number one, how prepared we are for that if we achieve this 15% growth, what are the pipelines, sanctioned pipelines and from where do you see this business coming in and how comfortable you are on the credit adequacy and to achieve these numbers.

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Similar thing is on the deposit side also because of the first quarter, this little lagging, what we have achieved is only INR 96,000 crores. So, there also we will have to do substantial work to reach this target of 13%. So, there also if you can a little bit…. Now looking at the numbers which you have given that but for NSE. So, I believe that total the profit from the NSE, I mean on the revaluation in the profit is around 3,680 altogether in the revaluation and this, if that you said INR 7,750 crores otherwise would have been the operating profit. So, is that correct that INR 3,680 crores we got either by way of revaluation or by way of profit booked from the NSE transaction and because of the listing of the National Stock Exchange. This is my first little bit observation and some clarification I would like to have from you.

Dr. Debadatta Chand: So, first of all, thank you so much, Ajmera saab, for complimenting the Bank, its growth, I mean, a consistent business model and the performance excluding the last quarter that you have already said. So, thank you so much for that. On the credit growth as you said INR 1,30,000 crore is the kind of incremental credit that you need to do and you would have seen the numbers both for Q3 and Q4 of last year, it was almost a similar number. So, in terms of ability on the RAM book, we are expecting almost INR 60,000 odd crores of incremental book. At the same time, the corporate book already the pipeline is INR 60,000 odd crore. So, as we go on a busy season both for December and March, I think this is achievable, quite achievable. And secondly, I use a word on liquidity that the entire, the liquidity generated out of FCNR(B) is not utilized as on today. This is a stored liquidity for us as on today. So, in terms of funding credit, I think there are enough resources which was not the case in earlier years. So, I think on both the fronts, I think the Bank is quite comfortable to achieve the numbers that we are guiding and upsizing the growth guidance. NSE, the full impact of both the cash profit and also revaluation, you said right, it is roughly around INR 3,600 some odd crore. Out of INR 3,600 crores, INR 1,600 crore is a prudential provisioning that we have done in this quarter to buffer the balance sheet for future impact of ECL and similar other activity. So, in that way, the balance sheet is cushioned. So, we have not taken the full benefit of the post-tax of the remaining portion would have been significantly lower in that way, both on the operating profit scale and the net profit also from the consistent business model continues to be strong. And as I said earlier, consistency and the sustainability is something the Bank is working for last many years. So, in that way, I think the Bank is well-positioned, Ajmera saab. And I think the business model is consistent, and the asset quality continues to be strong. And that is one of the strong points that I think the Bank would be in a position to achieve its target. Thank you. Mr. Ashok Ajmera: Sir, you touched on this ECL. In the last quarter, the reply to a question, I think, or your submission, you had said that 110 bps CRR impact might be there. And in the absolute terms, it can be around INR 12,000 odd crores. Out of that, you had INR 2,500 crores of the buffer last year itself, last quarter itself in this. So, now, with this M2M increasing and the, you know, the overall interest rate going up and in HTM book also now the provisions are required to be going up for the ECL provisioning. Number one, have you revised those numbers? I mean, is there any revised calculation on that? And, secondly, over and above that INR 2,500 crore, this quarter you said you have made already additional buffer provisioning. But when I see in the standard advance Page 6 of 13

provisioning, it is just gone up to INR 424 crore, I mean, from the minus INR 283 crore. So, that number which you are saying is in addition to this because in the non-performing asset also the provisioning is INR 381 crores minus; that is reversed rather. So, INR 381 crores has been reversed and INR 424 crores is additional standard asset provisioning. So, net-net, only INR 80-INR 90 crore looks here in the figures. So, the provision, extra provision, extra cushion, which you are saying, has been shown under which head, Sir? And, what is the total quantum now of the ECL requirement as well as the provision which we hold? Dr. Debadatta Chand: See, there are two heads here. One head is with regard to provision of NPA and bad debts, right. So, since we said the there is a potential loss concept, so some of the specific asset on the NPA side we can make additional provisioning that is prudential in nature, right. So, the INR 1,935 crore does include INR 1,300 crore of the prudential provisioning on the NPA front, not on the standard asset provisioning. Mr. Ashok Ajmera: Okay. Dr. Debadatta Chand: Other INR 300 crore is a contingency provision. We made it in Other Provision, which is the 403 number that you look at, where this provisioning is to take care of the fluctuation in the valuation of investment both on the bond and investment side. So, INR 1,600 crores, INR 1,300 crores we kept on the loan side, NPA, and another INR 300 crores on the contingency provision on the investment side. Because, as you know, market is fluctuating and particularly the valuation gain we got because of the particular script that we're referring, that also can go up and down. So, we have made a, I mean, prudential contingency provision of INR 300 crore in the ‘Other Provision’ head. Mr. Ashok Ajmera: Okay, Sir, point well taken. Sir, on the technology front and especially what is happening, you know, in the cyber side and the digital banking, lot of things are happening. Recently, one another bank got hit, you know, in the Reserve Bank credit and the transactions with them. And, similarly, so many new provisions are coming. Now, the DPDP is also to be implemented and on that. So, overall, on the technology front and, you know, earlier we had that episode of when BOB, I mean…So, how prepared we are now to take all this future eventualities and contingencies? And what are our preparedness for all such things? And on digital and technology front, how are we placed, what kind of budgets we have and what kind of more new journeys which we are introducing, whether the systems are there to take care of those eventualities, those risks? Dr. Debadatta Chand: No, you said right. Actually, it's one area getting both the management attention and the Board attention, since one small incident that happened with us itself. So, not only what is happening across the industry, not only in India but outside India also. So, in terms of investment, actually post the incident that happened with us, we significantly strengthened the security architecture on the entire, I mean, cyber mechanism, strengthening system, oversight control, governance; everything we have strengthened. That was almost like a, what you can say, some kind of a wakeup call for us to revamp everything that we have done completely as on today. Similarly, as the issue that we are referring, as on today we have almost 10% of the Operating Profit earmarked for IT, and we have said the IT department ‘You can go up to 15%’. So, in that way, we are hiring big time on the IT resources. You would have seen in multiple newspapers with regard to Bank of Baroda hiring on the IT. So, we have done everything within us, and we are discussing also globally large tech company with regard to how to strengthen it further. But having said so, the issue that we were debating is a burning issue, which not only impacting India also but globally the same situation. So, in that year, we need to be alert at all point of time, we are Page 7 of 13

literally on edge in terms of how do you manage the situation. But then I will assure you, we're taking everything possible within us to manage the current scenario with regard to the cyber threat. Mr. Mudaliar, would you like to comment anything on the cyber? Any specific point?

Mr. Sanjay Mudaliar: Thank you, Sir. Sir, you mentioned almost everything. So, we have got our preparedness in order. We have initiated a number of steps post the incident and looking into the scenario which is evolving. We have been kind of having a very tight kind of an oversight on the entire infrastructure as well as the ecosystem as to how it is developing it. We are putting all efforts, as well as the resources required to ensure that we and our customers are completely safe in this environment. Thank you. Dr. Debadatta Chand: Thank you. Moderator: Thank you, Sir. Thank you, Mr. Ajmera. The next question is from Kunal Shah. Kunal, can you unmute yourself, please? Mr. Kunal Shah: Yeah. Are you able to hear me? Moderator: Yeah, please go ahead. Yes. Dr. Debadatta Chand: Yes, go ahead. Mr. Kunal Shah: Yeah. First is with respect to this entire utilization of FCNR. You said like still it's not used to either pay the bulk deposits and it's kept for the requirement of future. So, if you can broadly make us understand whether it will be towards the deposits, or this will actually be used towards the lending growth? Because this is again like 4% of the loan book, and if it gets utilized towards the growth then, in fact, we should see a slightly better momentum getting into the second half. So, that's the first question. Second question is on provisioning. I understand you created the buffer, but that's again a specific provisioning. So, is it related to the same case as last quarter because there was some news that the demand has been slightly higher in that case now? And is there the specific provisioning towards that account or it is purely ECL considered in the NPA provisioning, if you can clarify that? And, thirdly, in terms of the gold loans, this quarter maybe hardly any growth out there. So, how you are pursuing the loan growth, maybe overall the gold loan growth? Even like, sequentially, last quarter it was like 8.5%, now this quarter it's slow down, it's primarily flat. So, how's your approach towards the gold loan? Yeah, thanks. Dr. Debadatta Chand: Yes, thanks, Kunal. With regard to deposit, as I use a word with regard to it ‘stored deposit’, the deposit can be used maybe for retiring. If the bulk deposit market gets into very elevated rate structure, obviously this deposit would be used towards liquidating those high cost, I mean, on reprice the elevated bulk rate. So, obviously, can be utilized towards that. If not, it can go to the credit need. So, the impact would be the same in the Bank's book, right. So, if you look at growth, let's say, around 14%-15% we're referring for the advance side, so this money is going to utilize wherever, I mean, both Page 8 of 13

ways. So, in that way, the net impact on the book would be the same. So, in that way, what I meant to say by ‘stored liquidity’ is that I have available liquidity which can be there to manage the requirement or resources for the quarter in that way. So, we're well positioned on that count. Secondly, the provisioning, that prudential, is loan asset specific provisioning, nothing to do with any account that you are referring. Absolutely not. It's a prudential provisioning, just created on multiple loan asset based on the potential loss on the specific prudential provisioning. So, nothing with regard to any other account that you are referring. Gold, as you say, on an incremental scale, if you look at the YTD on the retail gold, we have degrown. And, the Agri Gold is a stable gold business, which is quarter-to-quarter growing at 8%. So, in that way, the GNPA of the gold loan book with me, the GNPA has gone down. So, in that way, as on today, as far as we are concerned, we don't run a very large significant book. But we are concerned, we are mindful of the discussion happening on the gold loan in the market. At the same time, how do you pace your own gold loan book so that it doesn't put you into elevated stress. So, absolutely, we are mindful of that.

Mr. Kunal Shah: Thank you. Moderator: Thank you, Sir. The next question is from Ankit Bihani. Mr. Ankit Bihani: Yeah, hi, Sir. Can you hear me?

Dr. Debadatta Chand: Yeah, I can hear you, Ankit.

Mr. Ankit Bihani: Yeah. Congrats on the quarter. So, my question is on the FCNR liquidity front. If I look at your cash and investments, the sequential increase on Balance Sheet figures period ended, so that is at round about INR 18,000 odd crores but we have mobilized around INR 77,000 crores. And we are highlighting that, you know, most of the liquidity is there with us. Is there something incorrect with my understanding here? Dr. Debadatta Chand: Look, I mean, the Bank's liquidity is a dynamic flow. There are multiple instruments where you can park this asset. One is, as you rightly said, there is an increase in the investment book, right. Another is the increase in cash. Another can be that you get into a short-term repo. There are multiple ways you can park this deposit. If you look at reduction in bulk deposit, outstanding is only around INR 10,000 crores, right, vis-à-vis the last quarter. So, the money, INR 77,000 crores, obviously has not used towards liquidating that. Secondly, when we run a money market operation, then normally against SLR we go for a borrowing, right, in multiple markets. That's not there today because I do have the available liquidity. In that way, entire INR 77,000 crores is with us. We have a significant excess SLR to mobilize liquidity at any point of time. So, these are the ways we need to park it in that way. So, exactly the number you compare, you won't get the sense of where the money has gone. But, the money is available within me to generate the similar kind of money for funding my asset growth. Page 9 of 13

Mr. Ankit Bihani: Okay, sure. And my second question is, is there any interest on IT refund this quarter? And another clarity, the revaluation of investments that we are seeing on the Treasury line, so that is related to NSE only, or it is something else? And on the FCNR side, what kind of fee income, you know, would have been generated through that or it would have largely the Opex that we have made to mobilize this deposit and it might have neutralized that? Yeah, just those are my questions, Sir. Dr. Debadatta Chand: No, as far as IT refund this quarter, I believe it is only INR 290 crore, right. So, that's not significant as compared to the earlier quarters where I used to get the good amount of IT refund. In that way, it's very, I mean, minimal in this way. FCNR fee income, I don't think we have data. Madam Beena, you have anything on the FCNR fee side? Ms. Beena Vaheed: We'll have to come back, Sir. We'll come back. Dr. Debadatta Chand: We'll come back to you, Ankit. Mr. Ankit Bihani: Yes, Sir. Dr. Debadatta Chand: Thirdly, on the treasury valuation, the valuation is considered as a book as a whole. So, with Mr. Ajmera, like INR 3,600 crore is the total effect of NSE. That’s consisting of INR 1,300 odd crore on the cash profit, remaining is the valuation. So, when we look at the valuation, whatever that INR 1,900 crores, that's a combined book, everything including NSE. So, obviously the NSE valuation has been higher than INR 1,900 crore. So, that is what the number. Mr. Ankit Bihani: Okay, sure. Thank you. Moderator: Thank you, Ankit. Next question is from Jai Mundra. Mr. Jai Mundra: Yeah, hi. Good evening, Sir, and congratulations on a rebound in earnings. Sir, first question on your provisioning stance, right. Dr. Debadatta Chand: Good evening, Jai. Mr. Jai Mundra: Yeah, good evening, Sir. So, Sir, this quarter you've created additional specific provision of INR 1,300 crores, but you could also have also increased floating provisions, right, towards ECL. And this specific provision may or may not be used for ECL, right. So, what is the thought process in utilizing towards specific provisions versus creating for ECL which will definitely would have been utilized for ECL? Dr. Debadatta Chand: See, on the ECL impact, if you look at, there are two impacts – One is a onetime on the CRAR. Another is with regard to recurring. So, I need to buffer myself both in terms of one-time impact and also on the recurring. This provision what we have made is going to help us in the recurring, right. And going forward there's geopolitical, there may be impacts there in. So, it's there in the book. Floating provision can only be adjusted at a particular scenario, not at every scenario, right. Mr. Jai Mundra: Right.

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Dr. Debadatta Chand: So, that is how the concept of floating, I mean, prudential provisioning we have done this time. One good part also, you would have seen that we have made also a INR 300 crores of contingency provisioning just to take care of the valuation change that can happen going forward. As you see, couple of market, both on the bond market and the equity, have seen bit of correction therein. So, that is also trying to prepare an immediate Q3 impact and made a contingency provision of INR 300 crore on that. Mr. Jai Mundra: Right. So, Sir, are you saying that if you carry higher than IRAC provisions then you can use that provisions on a recurring basis? Is that what is the implication that if you carry more than IRAC, which is what we have done INR 1,300 crore, then under ECL on a recurring basis you can utilize, right, because you have already provided higher than IRAC? Dr. Debadatta Chand: That you can utilize for the ECL, that you can utilize also for Q3 and Q4. So, depending upon headwinds that we see in the market, so as a prudent measure, I mean, that has been created. And since quite a one-off because of NSE, so we thought it prudent to make those provision. Mr. Jai Mundra: Right, right. Okay, sure. And, secondly, Sir, on drought situation, have you had any restructuring requests? What is the kind of restructuring requests that you see over Q3 and maybe Q4 in select states which have got some drought impact? Dr. Debadatta Chand: Look, I mean, the Bank’s don't decide with regard to the drought and the restructuring. It is based on the SLBC which in the consultation of the government design a scheme therein. So, as on today, we don't have any scheme from the states which are impacted by the drought or the rainfall. So, as they would announce, definitely all the banks, including us, would be guided by that. Mr. Jai Mundra: Yeah, but you would have made some preliminary assessment, or as of now it is too early to suggest? Dr. Debadatta Chand: It is too early. Mr. Jai Mundra: Okay, sure. And last question, Sir, now ECL is approaching, I think, if you have data point on what is your all ticket size SMA 0,1,2 in rupees crore? What is your assessment of a standard assets provisioning only? We have done excellently on specific provisions, which is 18 basis point, and even last quarter was miniscule, but if you were to do standard assets provisioning under ECL how much would that be? And maybe SMA 0,1,2 number in rupees crore? Dr. Debadatta Chand: The SMA 1,2, we don't declare it publicly. But I can assure you, if I take the book as a whole, this quarter it is better than that of last quarter and better than that of the same quarter last year. So, in that way asset quality is in a good shape as on today, as we speak, touchwood, on the matter. In terms of the other question, CFO, can you just answer the question? Mr. Jai Mundra: Yeah, Sridhar Sir, so the question is, assuming a 13%-15% loan growth, what could be the standard assets provisioning for BOB under ECL? Mr. I V L Sridhar: See, this ECL framework is a total change in the framework of provisioning. So, we cannot actually specify the numbers in terms of standard or non-standard. So, the dispensation provided by RBI is that as on the date of migration we can adjust whatever additional requirement is there against the reserves. And, again, they have given the benefit of elongating it over a period of 5 years. So, we will take advantage of it and go forward.

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Mr. Jai Mundra: Okay. Sir, actually I think I did not make it clear. I was asking not for the transition but assuming you were in ECL in this quarter and you had 7% QoQ loan growth, what would have been standard assets provisioning that you would have done, right? You are running ECL accounts simultaneously, what would have been standard assets provisioning in this quarter in rupees crore? Dr. Debadatta Chand: Yeah, Jai, actually we do compute on an ongoing basis but this is not articulated as on today. We're only articulating the book as a whole. So, maybe at a later stage we'll engage with you to give more clarity with regard to this particular aspect, right. Mr. Jai Mundra: Sure. Sure, Sir. Thank you and all the very best, Sir. Dr. Debadatta Chand: Thank you very much. Moderator: Thank you. Sir, we have a couple of questions in the chatbot from Lavish Porwal. First question is, recovery from TWO was INR 729 crores in the second quarter, any guidance for the third quarter, fourth quarter as well as for FY28 and FY29? And his second question is, can we see similar absolute amount of fee income going ahead since the first quarter was muted? Dr. Debadatta Chand: Yeah, Lavish, our normalize run rate on the recovery from TWO an average basis is INR 750 crore, and we said it earlier; I think other than the one-off that you can see in the recovery from TWO. So, going by our, what we can say, I'll not say pipeline on the NPA side but we still hopeful that this run rate would be achieved both for Q3 and Q4. But going forward, beyond this financial year, slightly tough. We'll articulate at that point of time. Fee income, as you said right, I mean Q1 was a depressed one but we have pulled back. Still we are lower than the Q2 of last year. I think this is one area we are trying to optimize or work more on that. And I think that work would continue. I understand there is a significant scope for us to optimize on the fee income side, considering the size of book we carry. And if you compare the same book in other banks, including private sector banks, there is a good opportunity therein. I think that's a work in progress and this quarter has given some positive outcome. And I have hopeful that we will continue on the journey, I mean, that is what I can say. Madam Beena, anything you can say on the fee side? Any specific focus on that? Ms. Beena Vaheed: Actually, we are relooking at the entire fee structure of ours. So, in the next two quarters, I think there should be an upside in this area, Sir. Dr. Debadatta Chand: Okay. Moderator: Thank you. The last question we'll be able to take today is from Gaurav Jani. Gaurav, please unmute yourself. Dr. Debadatta Chand: Yes, Gaurav. Moderator: Okay, I think, Gaurav…Gaurav, are you there? He has muted himself. Okay, then the last question we'll take will be from Aman. Aman, please unmute yourself. Mr. Aman: Hi, Sir, thank you for the opportunity. I just wanted to ask what is the MTM impact of increase in yields on the bond portfolio, both in the P&L and in the AFS reserves for the quarter?

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Dr. Debadatta Chand: Overall impact we have given. Mr. Tyagi, anything you have or we can give the data later? Mr. Lalit Tyagi: Yeah, Sir, we would prefer to give it later actually. Right now, I do not have it ready. Dr. Debadatta Chand: So, Aman, we will revert back to you on this particular question, right. Mr. Aman: Okay, Sir, thank you. Moderator: Okay, Sir, I think that is…Okay, Gaurav has again put up. Gaurav, can you unmute yourself? Yes. I think he's facing some technical difficulty. I think Gaurav is facing some issues. We will go to the vote of thanks by Sridhar sir. Dr. Debadatta Chand: You are on mute, Mr. Sridhar. Mr. I V L Sridhar: Yes, Sir. I would like to extend my sincere gratitude to all of you for joining us today for the announcement and discussion of the financial results. Should you have any further question, please feel free to reach out to me or to our Investor Relations team. Thank you once again for your time and continued support. Have a great evening ahead. Thank you very much. Dr. Debadatta Chand: Thanks all of you. Thank you very much. Moderator: Thank you.

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