Bank of Baroda
Bank of Baroda
Financial Services F&OBank of Baroda is engaged in providing various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services.(Source : Company Web-site)
Bank of Baroda trades at an attractive 0.89x book value with a PE of 7.4x, well below PSU bank averages. With 75.76% analyst buy ratings, a healthy 2.97% dividend yield, and consistent 15% 3-year ROE, the stock offers value with reasonable growth despite near-term profit headwinds.
Key Fundamentals
Technical Indicators
Key Insights
Strengths
3- Stock is trading at 0.87 times its book value
- Stock is providing a good dividend yield of 3.04%.
- Company has been maintaining a healthy dividend payout of 21.3%
Weaknesses
3- Company has low interest coverage ratio.
- Contingent liabilities of Rs.8,63,069 Cr.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 1d agoBank of Baroda trades at an attractive 0.89x book value with a PE of 7.4x, well below PSU bank averages. With 75.76% analyst buy ratings, a healthy 2.97% dividend yield, and consistent 15% 3-year ROE, the stock offers value with reasonable growth despite near-term profit headwinds.
- Trading at 0.89x price-to-book, a significant discount to book value indicating deep value opportunity for a bank delivering 15% 3-year ROE
- PE ratio of 7.4x is substantially below the banking sector average of 12-15x, offering a wide margin of safety
- 75.76% of analysts (25 out of 33) have a buy rating, reflecting broad institutional confidence
- Dividend yield of 2.97% with a consistent 21.3% payout ratio provides steady income while retaining capital for growth
- Stock CAGR of 29% over 5 years demonstrates strong long-term wealth creation for patient investors
- Compounded sales growth of 12% over 3 years and 13% over 5 years shows consistent top-line expansion
- Compounded profit growth of 73% over 5 years reflects successful turnaround from NPA cycle, even as near-term growth moderates
- Market cap of Rs 1,46,918 Cr provides large-cap stability with PSU bank re-rating potential as government stake dilution narrative plays out
- TTM compounded profit growth has turned negative at -4%, signaling near-term earnings pressure and potential margin compression
- Contingent liabilities of Rs 8,63,069 Cr are massive at nearly 5.9x market cap, posing tail risk if even a small fraction crystallizes
- Low interest coverage ratio suggests vulnerability to rising funding costs and potential NIM pressure in a competitive deposit environment
- ROE has declined from 15% (3-year average) to 13% last year, indicating deteriorating return efficiency
- TTM sales growth has decelerated sharply to 5% from 12% 3-year CAGR, suggesting slowing loan growth or yield compression
- Company might be capitalizing interest costs, which could overstate reported profitability and asset quality metrics
- 10-year stock CAGR of only 7% shows the stock has historically been a poor long-term compounder despite periodic rallies
- Only 3.03% sell ratings but 21.21% hold ratings suggest not all analysts are fully convinced of near-term upside
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 1d ago- FY26 net profit up 2.2% YoY Jun 20
Bank of Baroda reported FY26 net profit of $2,111 Mn with global deposits up 12% to $173,827 Mn and advances rising 16.2% to $150,775 Mn.
- Aggressive FCNR(B) rate hike Jun 17
BoB raised FCNR(B) rates to 6.00-6.25% for 3-5 year USD deposits, up 25-50 bps, positioning itself as the most aggressive PSU bank for NRI deposits ahead of the Sep 30 CRR/SLR exemption deadline.
- AGM approves dividend ₹8.50/share Jun 23
Shareholders approved FY25-26 financial results, ₹8.50 per share dividend, and re-appointments of MD & CEO and Executive Directors at the 30th AGM.
- $4-5 Bn foreign inflows expected Jun 11
BoB expects $4-5 billion in inflows through bonds, borrowings, and FCNR(B) deposits, leveraging diversified foreign currency funding to strengthen its resource base.
- ECLGS 5.0 MSME loan push Jun 14
BoB sanctioned ₹25 crore in loans to 19 beneficiaries under ECLGS 5.0 at a state-level programme in Vadodara, reinforcing MSME lending via digital and GST-linked credit products.
- 555-day FD at up to 7.40% Jun 12
Launched a special 555-day retail deposit scheme for sub-₹3 crore deposits offering 6.75-7.40% depending on customer category and callable/non-callable structure.
- MCLR revised, 1-year at 8.75% Jun 10
Bank of Baroda revised MCLR across tenors effective June 12, 2026, with the benchmark one-year MCLR set at 8.75%.
- Senior management reshuffle Jun 4
BoB announced changes in senior management designations for Shukla, Nema, and Singh's appointment effective June 4, 2026.
- Investor conference engagement May 26
BoB scheduled meetings at Morgan Stanley, BofA, and Citi India conferences in early June 2026, plus a virtual fixed-income investor meet on June 22.
- FY26 annual report corrigendum Jun 3
Corrected dividend payout ratio to 21.96% and a provision figure in the FY26 Annual Report; confirmed typographical errors with no financial impact.
- BRSR & IEPF filings published May 29
Filed FY26 Business Responsibility and Sustainability Report with ESG targets and published IEPF Saksham Niveshak campaign advertisements.
TL;DR: Bank of Baroda is executing well on growth with FY26 advances up 16.2% and deposits up 12%, while aggressively pursuing NRI foreign currency deposits via elevated FCNR(B) rates of up to 6.25%. Profitability growth is modest at 2.2% YoY, and the higher deposit rates could compress NIMs if not offset by international asset growth. The trend is stable-to-positive, with the bank leaning into its 'India's International Bank' positioning and leveraging RBI's CRR/SLR exemptions through September 2026 to capture market share.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 27,196 | 28,003 | 29,263 | 30,042 | 31,072 | 31,143 | 31,902 | 32,570 | 32,820 | 32,866 | 33,318 | 33,600 | 34,514 |
| Expenses | 10,642 | 11,040 | 12,216 | 10,556 | 12,269 | 10,879 | 12,755 | 10,654 | 12,712 | 12,928 | 11,548 | 12,390 | 13,155 |
| Financing Profit | 1,764 | 902 | -480 | 1,484 | 494 | 1,682 | -119 | 1,772 | -165 | -368 | 1,579 | 624 | 582 |
| Fin. Margin % | 6% | 3% | -2% | 5% | 2% | 5% | 0% | 5% | 0% | -1% | 5% | 2% | 2% |
| Other Income | 5,332 | 5,316 | 6,503 | 5,042 | 6,538 | 4,658 | 7,553 | 5,163 | 7,076 | 5,538 | 5,116 | 6,399 | 5,474 |
| Interest | 14,790 | 16,060 | 17,528 | 18,002 | 18,309 | 18,582 | 19,266 | 20,143 | 20,273 | 20,307 | 20,191 | 20,586 | 20,776 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 7,096 | 6,217 | 6,023 | 6,526 | 7,033 | 6,340 | 7,434 | 6,935 | 6,911 | 5,170 | 6,695 | 7,024 | 6,057 |
| Tax % | 28% | 31% | 28% | 27% | 29% | 28% | 27% | 26% | 23% | 35% | 24% | 23% | 7% |
| Net Profit | 5,315 | 4,468 | 4,426 | 4,815 | 5,160 | 4,764 | 5,405 | 5,250 | 5,447 | 3,517 | 5,181 | 5,501 | 5,872 |
| EPS in Rs | 10.16 | 8.61 | 8.5 | 9.26 | 9.92 | 9.14 | 10.36 | 10.08 | 10.48 | 6.71 | 9.93 | 10.53 | 11.22 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 44,915 | 45,799 | 44,473 | 46,056 | 52,906 | 78,895 | 74,314 | 73,385 | 94,503 | 1,18,379 | 1,27,945 | 1,34,298 |
| Expenses | 13,466 | 25,391 | 19,250 | 26,093 | 25,815 | 40,583 | 38,636 | 37,518 | 38,239 | 44,387 | 45,533 | 48,058 |
| Financing Profit | 902 | -11,700 | -4,372 | -9,197 | -5,414 | -11,728 | -7,523 | -2,948 | 6,321 | 4,093 | 4,147 | 4,381 |
| Fin. Margin % | 2% | -26% | -10% | -20% | -10% | -15% | -10% | -4% | 7% | 3% | 3% | 3% |
| Other Income | 5,449 | 5,992 | 7,937 | 7,992 | 7,887 | 12,191 | 15,254 | 14,395 | 16,275 | 23,399 | 24,939 | 22,527 |
| Interest | 30,547 | 32,107 | 29,596 | 29,160 | 32,506 | 50,040 | 43,201 | 38,815 | 49,942 | 69,899 | 78,265 | 81,860 |
| Depreciation | 368 | 525 | 540 | 901 | 948 | 1,697 | 1,357 | 1,438 | 2,032 | 1,694 | 1,467 | 1,963 |
| PBT | 5,983 | -6,233 | 3,024 | -2,106 | 1,525 | -1,234 | 6,373 | 10,008 | 20,565 | 25,799 | 27,619 | 24,945 |
| Tax % | 36% | -19% | 41% | -9% | 29% | -176% | 77% | 23% | 29% | 29% | 26% | 22% |
| Net Profit | 3,950 | -5,033 | 1,855 | -1,836 | 1,166 | 981 | 1,620 | 7,933 | 15,005 | 18,869 | 20,865 | 20,070 |
| EPS in Rs | 17.69 | -21.99 | 7.88 | -7.13 | 4.16 | 2.01 | 2.99 | 15.18 | 28.82 | 36.29 | 40.06 | 38.38 |
| Div. Payout % | 18% | 0% | 15% | 0% | 0% | 0% | 0% | 19% | 19% | 21% | 21% | 22% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 444 | 462 | 462 | 530 | 530 | 925 | 1,036 | 1,036 | 1,036 | 1,036 | 1,036 | 1,036 |
| Reserves | 41,574 | 42,041 | 42,605 | 46,036 | 54,466 | 75,179 | 81,354 | 90,833 | 1,04,019 | 1,18,677 | 1,45,467 | 1,64,833 |
| Borrowing | 35,502 | 33,845 | 31,242 | 64,860 | 68,868 | 95,753 | 71,263 | 1,09,526 | 1,07,910 | 1,01,959 | 1,35,813 | 1,70,297 |
| Deposits | 6,29,981 | 5,86,690 | 6,17,257 | 6,07,451 | 6,65,589 | 9,73,228 | 9,95,910 | 10,75,804 | 12,34,682 | 13,59,980 | 14,96,696 | 16,75,895 |
| Other Liabilities | 26,465 | 28,134 | 27,649 | 28,919 | 30,217 | 54,850 | 53,104 | 62,922 | 78,224 | 73,123 | 82,754 | 89,425 |
| Total Liabilities | 7,33,966 | 6,91,173 | 7,19,216 | 7,47,796 | 8,19,670 | 11,99,935 | 12,02,667 | 13,40,121 | 15,25,871 | 16,54,775 | 18,61,766 | 21,01,485 |
| Fixed Assets | 2,978 | 6,359 | 5,930 | 5,532 | 7,368 | 9,268 | 8,438 | 11,098 | 9,865 | 9,054 | 13,544 | 13,107 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 1 | 3 | 6 | 1 | 1 |
| Investments | 1,24,739 | 1,28,894 | 1,40,716 | 1,75,137 | 1,95,716 | 2,89,727 | 2,81,859 | 3,47,587 | 3,97,487 | 4,07,136 | 4,27,380 | 4,35,778 |
| Other Assets | 6,06,248 | 5,55,920 | 5,72,570 | 5,67,126 | 6,16,586 | 9,00,941 | 9,12,367 | 9,81,435 | 11,18,516 | 12,38,580 | 14,20,842 | 16,52,599 |
| Total Assets | 7,33,966 | 6,91,173 | 7,19,216 | 7,47,796 | 8,19,670 | 11,99,935 | 12,02,667 | 13,40,121 | 15,25,871 | 16,54,775 | 18,61,766 | 21,01,485 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 17,838 | -10,011 | 17,865 | -59,692 | -1,449 | 18,531 | -887 | 6,210 | -21,354 | -6,274 | 34,892 | 33,426 |
| Investing | -556 | -4,005 | -551 | -414 | -2,537 | -139 | -471 | -3,645 | -1,096 | -1,285 | -6,494 | -3,275 |
| Financing | -6 | -616 | -198 | 3,413 | 4,449 | 14,729 | -986 | -998 | -5,405 | 5,476 | 3,790 | -1,806 |
| Net Cash Flow | 17,276 | -14,632 | 17,116 | -56,692 | 462 | 33,120 | -2,344 | 1,567 | -27,855 | -2,084 | 32,188 | 28,345 |
| Free Cash Flow | 17,282 | -14,016 | 17,314 | -60,105 | -3,986 | 18,393 | -1,146 | 2,805 | -22,140 | -7,153 | 28,979 | 31,911 |
| CFO/OP | 57 | -56 | 66 | -304 | 11 | 49 | 12 | 20 | -28 | 3 | 54 | 44 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 10% | -12% | 4% | -4% | 2% | 1% | 2% | 9% | 15% | 17% | 16% | 13% |
Documents
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Company Information
Bank of Baroda is engaged in providing various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services.(Source : Company Web-site)