Priority-Sector Lending Remains the Main Stress Area Despite Improvement in Overall Gross NPA Ratios
NEW DELHI (India CSR): 118-year-old Bank of Baroda’s cumulative technical/prudential written-off accounts reached Rs. 77,080.05 crore as on March 31, 2026, compared with Rs. 76,369.39 crore a year earlier. The figure represents the accumulated balance of loans that have been written off for accounting purposes over time, while recovery efforts from borrowers may continue. During FY2025–26, the Bank added Rs. 7,292.48 crore to this cumulative pool and recovered Rs. 6,581.82 crore from accounts written off earlier. Consequently, the balance increased by Rs. 710.66 crore during the year, the Annual Report revealed.
The Bank’s gross advances increased by around 16.2% to Rs. 14,29,879.12 crore in FY2026 from Rs. 12,30,461.15 crore in FY2025. As a result, its GNPA ratio declined to 1.89% from 2.26%, while the net NPA ratio improved to 0.45% from 0.58%. Net NPAs in absolute terms also fell to Rs. 6,315.56 crore from Rs. 6,994.24 crore. The numbers show a positive asset-quality trend, as both gross and net stressed-loan balances declined. However, the annual report data also show that the reduction was supported by a mix of recoveries, upgrades, technical write-offs and other adjustments—not recoveries alone.
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PSBs Write Off ₹ 91,261 Crore in FY2024-25; 10-Year Total Crosses ₹ 12.08 Lakh Crore
It is to be noted that Public sector banks (PSBs) wrote off loans worth Rs. 91,261 crore in FY2024-25, according to provisional Reserve Bank of India (RBI) data submitted by the Ministry of Finance in the Rajya Sabha. The figures were presented in response to Rajya Sabha Unstarred Question No. 244, answered on July 22, 2025. The Ministry stated that PSBs wrote off an aggregate Rs. 12,08,828 crore between FY2015-16 and FY2024-25.
The FY2024-25 write-off amount was lower than Rs. 1,14,622 crore in FY2023-24, but it remains a significant indicator of the stressed-loan challenge faced by the banking sector. Importantly, the government clarified that writing off a loan does not mean the borrower has been given a waiver. The borrower remains liable to repay, while banks continue recovery action through available legal channels.
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₹11,075 Crore NPA Reductions
During FY2026, Bank of Baroda recorded fresh NPA additions of Rs. 10,298.82 crore, higher than Rs. 9,310 crore in the previous financial year. Yet, total reductions from the GNPA pool stood at Rs. 11,075.11 crore, enabling the Bank to reduce the overall gross NPA stock by Rs. 776.29 crore. The reduction channels included Rs. 1,128.28 crore of upgradations, Rs. 3,352.44 crore of recoveries excluding upgraded accounts, Rs. 5,540.02 crore of technical or prudential write-offs, Rs. 790.21 crore of other write-offs, and Rs. 264.16 crore of other adjustments or exchange-related movements.
Technical and other write-offs together accounted for Rs. 6,330.23 crore, or more than half of the stated reductions in the gross NPA pool. This does not necessarily mean the Bank has waived the outstanding loans. Technical or prudential write-offs generally remove adequately provided bad loans from the active balance-sheet NPA stock while allowing the Bank to continue recovery action through legal proceedings, settlements, collateral enforcement and other channels.
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Recoveries Continue After Write-Offs
Bank of Baroda’s cumulative technical/prudential written-off accounts reached Rs. 77,080.05 crore as on March 31, 2026, compared with Rs. 76,369.39 crore a year earlier. During FY2025–26, the Bank added Rs. 7,292.48 crore to this pool and recovered Rs. 6,581.82 crore from loans that had been written off earlier. In simple terms, a technical or prudential write-off means the Bank removes a fully or substantially provided bad loan from its active loan-book figures. It does not automatically mean that the borrower’s debt has been waived. The Bank can continue efforts to recover the money through settlements, legal proceedings, sale of pledged assets and other recovery mechanisms.
What the Numbers Mean
- Cumulative written-off accounts at FY2026-end: Rs. 77,080.05 crore
- Added during FY2026: Rs. 7,292.48 crore
- Recovered from earlier written-off accounts: Rs. 6,581.82 crore
- Net increase in the cumulative written-off account pool: Rs. 710.66 crore
This means the Bank recovered a sizeable amount from old written-off accounts, but new additions during the year were higher than recoveries. Therefore, the cumulative written-off account pool increased by Rs. 710.66 crore. The Rs. 77,080.05 crore balance is much larger than the Bank’s active gross NPA balance of Rs. 27,058.59 crore. This makes continued recovery important: stronger recoveries from written-off accounts can bring money back to the Bank, while lower fresh additions can help reduce the accumulated pool over time.
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Higher Provisions Strengthen Buffer
The Bank strengthened its protection against future credit losses during the year. Its provision coverage ratio (PCR), including technical write-offs, improved to 93.94% from 93.29%. PCR excluding technical write-offs also rose to 76.66% from 74.87%, reflecting stronger underlying coverage of stressed assets. Provisions for NPAs and bad debts written off increased to Rs. 5,694 crore in FY2026 from Rs. 5,170 crore a year earlier. Bank of Baroda also added Rs. 1,900 crore in floating provisions, taking the floating provision balance to Rs. 2,500 crore.
Higher provisions can reduce immediate profitability, but they improve a bank’s ability to absorb potential credit losses in the future. Despite this, Bank of Baroda’s net profit increased by 2.2% to Rs. 20,021 crore in FY2026, while credit cost remained broadly stable at 0.46%.
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Priority Sector Needs Attention
The annual report shows that priority-sector lending remains the Bank’s key stressed-asset concentration. Priority-sector advances accounted for about 27% of total advances but represented nearly 68% of gross NPAs. The GNPA ratio for the priority sector was 4.75%, compared with 0.82% for non-priority lending. Agriculture and allied activities accounted for Rs. 8,449.66 crore of priority-sector GNPAs, while priority-sector services recorded the highest GNPA ratio at 6.62%. Although priority-sector asset quality improved from the previous year, these segments will require continued monitoring and targeted recovery action.
Bank of Baroda’s FY2026 performance reflects improved reported asset quality, lower gross and net NPA balances, and stronger provisioning discipline. The key test for FY2027 will be whether recoveries and account upgrades increasingly drive the NPA reduction, while fresh slippages and dependence on write-offs remain under control.
Particulars | FY2025 | FY2026 | Change / Meaning |
|---|---|---|---|
| Gross Advances | ₹12,30,461.15 crore | ₹14,29,879.12 crore | Up 16.2% |
| Gross NPAs | ₹27,834.88 crore | ₹27,058.59 crore | Down ₹776.29 crore |
| GNPA Ratio | 2.26% | 1.89% | Down 37 basis points |
| Net NPAs | ₹6,994.24 crore | ₹6,315.56 crore | Down ₹678.68 crore |
| Net NPA Ratio | 0.58% | 0.45% | Down 13 basis points |
| Fresh NPA Additions | ₹9,310 crore | ₹10,298.82 crore | Higher in absolute terms |
| Total GNPA Reductions | — | ₹11,075.11 crore | Higher than fresh additions |
| Recoveries Excluding Upgrades | — | ₹3,352.44 crore | Cash recovery from active NPAs |
| Upgradations | — | ₹1,128.28 crore | Accounts restored to performing status |
| Technical / Prudential Write-Offs | — | ₹5,540.02 crore | Largest NPA-reduction channel |
| Other Write-Offs | — | ₹790.21 crore | Total write-off-related reduction: ₹6,330.23 crore |
| PCR Including Technical Write-Offs | 93.29% | 93.94% | Improved loss protection |
| PCR Excluding Technical Write-Offs | 74.87% | 76.66% | Underlying coverage strengthened |
| NPA and Bad Debt Provisions | ₹5,170 crore | ₹5,694 crore | Up 10.1% |
| Floating Provisions | ₹600 crore | ₹2,500 crore | ₹1,900 crore additional buffer |
| Written-Off Account Balance | ₹76,369.39 crore | ₹77,080.05 crore | Continuing recovery pool |
| Recoveries from Written-Off Accounts | ₹9,177.43 crore | ₹6,581.82 crore | Recovery efforts continued |
| Priority-Sector GNPA Ratio | 5.57% | 4.75% | Improved, but remains high |
| Non-Priority Sector GNPA Ratio | 1.02% | 0.82% | Lower stress than priority lending |
Total deposits of the Bank increased to Rs. 16,48,487 crore in FY 2026 from Rs. 14,72,035 crore in FY 2025, thereby registering a growth of 12.0% on a YoY basis. The domestic CASA deposits of the Bank grew by 9.8% on a YoY basis, to reach the level of Rs. 5,45,034 crore in FY 2026. The domestic Deposit growth was 12.8% on a YoY basis and reached to Rs. 14,01,290 crore in FY 2026. The Global Gross advances of the Bank reached the level of Rs. 14,29,879 crore in FY 2026 as compared with Rs. 12,30,461 crore in FY 2025 by registering a growth of 16.2% on a YoY basis. The Total Business of the Bank grew to Rs. 30,78,366 crore in FY 2026 from Rs. 27,02,496 crore in FY 2025, registering a growth of 13.9% on a YoY basis.
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Bank of Baroda’s Total Business Crosses Rs. 30 Lakh Crore; FY26 Net Profit Reaches Rs. 20,021 Crore
For the Bank, FY2025–26 was marked by consistent improvement across key business parameters including growth, profitability, margins and asset quality. The Bank achieved several significant milestones during the year. Total business crossed the landmark Rs. 30 lakh crore mark to reach Rs. 30.78 lakh crore, registering a year-on-year (YoY) growth of 13.9%. The Bank reported its highest-ever quarterly net profit of Rs. 5,616 crore in Q4 FY26. Further, for FY26, net profit crossed the Rs. 20,000 crore milestone for the first time to reach Rs. 20,021 crore.
Public Sector Banks (PSBs) Write-Off: FY25 Write-Offs Fall 20.4%
The FY2024-25 total of Rs. 91,261 crore was 20.4% lower than Rs. 1,14,622 crore in FY2023-24. It was also below the Rs. 1,33,384 crore recorded in FY2020-21, the highest annual amount among the five years covered in the parliamentary reply. However, the five-year write-off total for the 12 PSBs listed in the annexure stands at Rs. 5,82,253 crore between FY2020-21 and FY2024-25, according to provisional Reserve Bank of India (RBI) data submitted by the Ministry of Finance in the Rajya Sabha. The figures were presented in response to Rajya Sabha Unstarred Question No. 244, answered on July 22, 2025.
| Financial Year | PSB Loans Written Off |
|---|---|
| FY2020-21 | ₹1,33,384 crore |
| FY2021-22 | ₹1,15,749 crore |
| FY2022-23 | ₹1,27,237 crore |
| FY2023-24 | ₹1,14,622 crore |
| FY2024-25* | ₹91,261 crore |
| Five-Year Total | ₹5,82,253 crore |
FY2024-25 figures are provisional, as per RBI data.
SBI Records Highest Amount
The State Bank of India (SBI) accounted for the highest write-offs in FY2024-25 at Rs. 20,309 crore, representing over 22% of the total reported by the 12 public sector banks. SBI’s write-off amount rose from Rs. 16,161 crore in FY2023-24.
Canara Bank reported the second-highest amount at Rs. 14,350 crore, followed by Punjab National Bank at Rs. 12,159 crore and Union Bank of India at Rs. 11,634 crore.
| Bank | FY2024-25 Write-Offs |
|---|---|
| State Bank of India | ₹20,309 crore |
| Canara Bank | ₹14,350 crore |
| Punjab National Bank | ₹12,159 crore |
| Union Bank of India | ₹11,634 crore |
| Bank of Baroda | ₹8,796 crore |
| Bank of India | ₹7,959 crore |
| Indian Bank | ₹4,916 crore |
| Indian Overseas Bank | ₹3,885 crore |
| Central Bank of India | ₹3,370 crore |
| UCO Bank | ₹1,566 crore |
| Punjab and Sind Bank | ₹1,521 crore |
| Bank of Maharashtra | ₹796 crore |
SBI, Union Bank and PNB Lead Five-Year Total
Over the five financial years from FY2020-21 to FY2024-25, SBI recorded cumulative write-offs of Rs. 1,14,599 crore. Union Bank of India followed with Rs. 85,540 crore, while Punjab National Bank reported Rs. 81,243 crore.
Bank of Baroda’s five-year total was Rs. 70,061 crore, while Canara Bank recorded Rs. 56,491 crore.
| Bank | Five-Year Write-Offs |
|---|---|
| State Bank of India | ₹1,14,599 crore |
| Union Bank of India | ₹85,540 crore |
| Punjab National Bank | ₹81,243 crore |
| Bank of Baroda | ₹70,061 crore |
| Canara Bank | ₹56,491 crore |
| Bank of India | ₹45,808 crore |
| Indian Bank | ₹38,320 crore |
| Central Bank of India | ₹30,857 crore |
| Indian Overseas Bank | ₹22,863 crore |
| UCO Bank | ₹19,340 crore |
| Bank of Maharashtra | ₹11,326 crore |
| Punjab and Sind Bank | ₹5,805 crore |
Read More: Read the full Bank of Baroda NPA and Write-Offs Analysis FY2025-26 for detailed tables, recovery trends, provisioning analysis, sector-wise risks and FY2027 watchpoints.
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