Explained: What is treasury income, and why did it lift Bank of Baroda’s profit?

Treasury income is what a bank earns from trading and investing in bonds, shares and other securities.

It can change a lot from quarter to quarter.

Bank of Baroda’s treasury income rose to Rs 4,093 crore from Rs 1,086 crore, helped by the NSE share sale.

That helped the bank post a record profit of about Rs 6,532 crore.

Analysts also look at net interest income, which grew 9%.

Treasury income was Rs 4,093 crore, against Rs 1,086 crore a year earlier, according to the reports.

The sharp rise in non-interest income was aided by the sale of the bank’s shares in the National Stock Exchange through its IPO, according to the reports.

Net interest income, the difference between what the bank earns on loans and pays on deposits, grew 9% to Rs 13,026 crore, according to Zeebiz and inkl.

Net interest margin fell 3 basis points from the previous quarter to 2.74%, according to the reports. A basis point is one hundredth of a percentage point.

Provisions rose 93% from a year earlier to Rs 2,382 crore, but were below the Rs 6,323 crore booked in the first quarter of 2026-27, according to the reports.

Gross non-performing assets, the share of loans that borrowers are not repaying on time, improved to 1.78%, according to the reports.

Net profit for the first half of 2026-27 was about Rs 7,810 crore, according to the reports.

Zeebiz says the profit beat analyst estimates.

One report ties the quarter to a legal settlement with the NMC Group, which would be a cost and not a gain. The other reports did not mention it, so it is not treated as part of the headline numbers here.

The record profit owes a lot to one-off gains, so the bank’s regular earnings from lending are a separate measure from the headline figure.

Bank of Baroda branch at MG Road, Bengaluru (file image), Wikimedia Commons, CC BY-SA 4.0