Bank of Baroda is an Indian public sector banking and financial services company headquartered in Vadodara, Gujarat, India. It deals in the business of more than US$ 575 billion and has a network of over 8168 domestic branches and 11,475 ATMs spread across the country. Also, BoB has branches in many countries, including the US, the UK, Hong Kong, and Dubai.
The bank offers a range of banking and financial services, including savings accounts, current accounts, loans, deposits, online banking, insurance, and investment services.
Bank of India is currently trading at Rs.195.6 as of September 7, 2023.
Stock History of BoB
Bank of Baroda’s stock price has been volatile since it was listed in the National Stock Exchange in 1991. In the beginning, the stock traded at a very low price, which rose to a high of Rs. 642 in April 2007, before declining again in the aftermath of the global financial crisis. Since then, the stock has seen an upward trend and was trading at Rs. 195.6 on September 7, 2023.
Bank of Baroda in Recent News
- Investors were concerned that the banks’ exposure to Go First would have a negative effect on their asset quality, which caused several banking stocks including Bank of Baroda to trade in the red during intraday trade on Wednesday, keeping their sectoral index Nifty Bank down.
- The International Financial Services Centre Banking Unit (IFSCBU) of Bank of Baroda (Bank) in GIFT City has opened its brand-new, cutting-edge facilities at Brigade International Financial Centre in GIFT IFSC, Gandhinagar, as it seeks to grow its activities there. The Bank will expand its foreign exchange and derivatives trading operations at GIFT IFSC and establish up international Treasury operations, a centralised trade finance centre, and a capital markets business.
- Bank of Baroda appoints Debadatta Chand as their new CEO starting from July 1.
- Bank of Baroda (BOB) will impose a 1% fee for paying house rent using their credit cards.
Bank of Baroda Earnings Q1 FY2024: Summary
- Net Profit Surge: Bank of Baroda reported a significant 87.7% YoY rise in net profit, amounting to Rs 4,070 crore for the Q1 FY24, surpassing market expectations.
- Asset Quality Enhancement: The bank exhibited improved asset quality with the gross NPA dropping by 33.8% YoY to Rs 34,832 crore. The gross NPA ratio improved to 3.51% from 6.26% the previous year, and the net NPA ratio hit a record low of 0.78%.
- Strong Growth in Advances and Deposits: The bank’s global advances showed an 18% YoY growth, driven mainly by retail segments like auto loans, home loans, and personal loans. Global deposits increased by 16.2% YoY, reaching Rs 11,99,908 crore.
- Financial Ratios: The Capital Adequacy Ratio (CAR) stood at 15.46%, marking an increase by 38 bps from the year-ago period. The Provision Coverage Ratio (PCR) was at 93.23% with technical write-offs.
- Diverse Domestic and Global Presence: BoB continues to expand its footprint with 8,205 domestic branches, 10,459 ATMs and Cash Recyclers, and 93 international offices across 17 countries.
What I like about Bank of Baroda (for investment)?
- Strong Growth in Advances: Bank of Baroda exhibited robust growth in global advances. Specifically, domestic advances surged by 17%, while international advances witnessed an impressive growth of 23%. Such a diversified growth trajectory shows the bank’s strength in both domestic and international markets.
- Retail Sector Thriving: The bank’s retail sector clearly seems to be leading the charge, with a significant growth of 25%. This indicates a strong consumer trust in the bank and its services.
- Consistent Growth in Other Sectors: Both agri and MSME advances have also been performing consistently well, registering growths of 15% and 13% respectively. This showcases the bank’s capability to cater to different sectors efficiently.
- Healthy Deposit Growth: The bank’s total deposits saw a growth of 16%. The substantial growth in term deposits by 24% shows that customers trust the bank with their long-term savings.
- Improved Yields and Profitability: The bank reported a rise in the yield on advances by 10 basis points, which means it’s earning more from its lending activities. Additionally, indicators like a 35% year-on-year growth in Net Interest Income (NII), an astounding 73% increase in operating profit, 106% rise in Profit Before Tax (PBT), and an 88% growth in Profit After Tax (PAT) are exemplary of the bank’s remarkable profitability.
- Impressive Asset Quality: The declining Gross Non-Performing Assets (NPA) to 3.51% and Net NPA to 0.78% suggests that the bank is increasingly effective at managing its credit risks.
- High Provisioning: A Provision Coverage Ratio (PCR), including TWO advances, at 93.23% demonstrates the bank’s prudence and readiness to cover potential loan losses, providing an added assurance to stakeholders about the bank’s risk management prowess.
To buy Bank of Baroda shares, you can open a Demat and trading account with a stockbroker. You can then place a buy order for Bank of Baroda shares with the broker, who will execute the order on your behalf. You will need to pay brokerage charges for the transaction. Alternatively, you can also purchase Bank of Baroda shares through a mutual fund. some of the online platforms to buy BoB shares are Paytm Money, Zerodha, 5paisa, Groww, etc.
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Bank of Baroda stocks after going up by more than 14.47% in last 6 months, is now trading at Rs. 196.60 as of 7th September, 2023.
Bank of Baroda (BOB) shares have shown a bullish trend in 2023, with the share price expected to grow to ₹253.17 in December, 2023.
The highest forecast for the year is in December, where the shares are expected to reach ₹253.17, with a minimum price of ₹154 in February, 2023.
The technical analysis indicates that the shares have a positive outlook for the year, with a steady upward trend.
However, there may be some fluctuations in the shares in certain months, with a bearish outlook in December and November.
In general, the Bank of Baroda shares are expected to perform well in 2023, making it a good investment opportunity for investors.
For the month of September 2023, Bank of Baroda share price is expected to trade in between ₹215.77 and ₹175.98.
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Bank of Baroda’s share price in 2024 is predicted to be ₹354.45.
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According to our prediction and calculation, Bank of Baroda’s share price is estimated to reach Rs. 400-430 in 2025.
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After reaching Rs. 429 in the last month of 2025, the market will fall for continuously for 2 years will fall as low as Rs. 179.07 in 2027. However, the share prices will close at Rs. 255 in 2027. In 2028, the bull run will take the prices to almost double and the prices will jump up to Rs. 460 by the end of 2028.
Again, next year will be bullish and will take the prices to Rs. 945 in 2029. The price will cross the mark of Rs. 1000 in 2030 and is expected to close the year at Rs. 1,053.
Bank of Baroda Financial Condition (2019 to 2023): Last 5 years
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Bank of Baroda price target by Emkay Global
Emkay Global Financial suggests acquiring Bank of Baroda with a price target of Rs 260. (9th August, 2023)
Bank of Baroda price target by ICICI Direct
ICICI Direct has given a buy rating with a price prediction of Rs 201.9 (20th July, 2023)
Bank of Baroda price target by HDFC Securities
HDFC Securities has suggested to buy Bank of Baroda with a price projection of Rs 202. (19th April, 2023)
Bank of Baroda price target by Motilal Oswal
Motilal Oswal is bullish on Bank of Baroda and has recommended to buy with a price target of Rs 240. (8th August, 2023)
Bank of Baroda price target by Prabhudas Lilladher
Prabhudas Lilladher insists investors to buy Bank of Baroda with a price target of Rs 235. (8th August, 2023)
Factors like the macroeconomic environment, the performance of the company and the market sentiments are responsible for the direction of the share price of a company. Considering the same factors, BOB share price will grow in 2023 as per the forecasting done by market experts.
BoB has a market cap of over Rs. 99,630 Crore as of 31st August 2023.
Bank of Baroda’s share price in 2025 is not possible to predict accurately, as it is influenced by numerous external factors. However, analysts have estimated that the stock could reach Rs. 400-430 by the end of 2025.
The external factors are expected to be in favour of the Bank of Baroda in the coming years and based on this prediction, it could be predicted that the share price of BoB could reach Rs. 1,000 by the end of 2030.
Bank of Baroda share price target for 2030 is in between ₹1,053.38 to ₹737.37. Compared to its current share price, it looks like BOB has the potential to grow by more than 600% in next 7 years.
- Motherson Share Price Target by Emkay Global
- HDFC bank Share Price Target by JM Financial
- Central bank of India Share Price Target for 2030
Bank of Baroda Peers: PE, Marketcap Compared
|S.No.||Name||Current Price||P/E||Mar Cap Rs.Cr.|
|1||St Bk of India||569.95||7.58||508658.22|
|2||Bank of Baroda||192.6||5.74||99600.42|
|4||Union Bank (I)||87.19||6.36||64629.15|
|6||I O B||30.86||26.43||58332.85|
|9||Bank of India||87.6||7.58||35947.22|
As we can see, out of all public sector banks, Bank of Baroda’s P/E ratio is lowest after Canara Bank, whereas IOB’s PE is highest.
Bank of Baroda in Future: Things you need to know
- Bank of Baroda is targeting a 14-15% loan growth for FY24, with emphasis on retail growth at 18-20% while aiming for a Net Interest Margin (NIM) of 3.3%.
- Aiming to achieve INR 12,000 crores in recoveries for FY24, the bank’s portfolio mix is shifting towards 35% corporate and 65% non-corporate.
- The bank is aggressively pursuing fee income growth, especially through its Cash Management Business (CMS) and wealth management segments.
- Strategies like channelizing resources, capturing customer flows, and a particular emphasis on relationship management are in place to bolster CASA growth.
- Confidence remains high in meeting the retail loan growth guidance, as the bank eyes future expansion.
Bank of Baroda is an Indian public sector banking and financial services company headquartered in Vadodara, Gujarat, India. Its stock price has been volatile since it was listed on the National Stock Exchange in 1991.
With its Earning per Share growing from 28.82 in March 2023 to 33.68 in TTM (2024), and Price-to-Earning ratio decreasing to 5.85 currently, it is convenient the the Bank of Baroda stock is undervalued now, and it is a good time to invest now. Just to compare, PE ratio in August 2021 was 33.5. You can, by these figures, clearly understand how cheap Bank of Baroda is, compare to its previous valuation.
Sales are growing, profits are growing, the NPA is reducing. This makes Bank of India share a brilliant stock to include in the portfolio. I personally have added Bank of India in my portfolio this month.
Some analysts have estimated that the stock could reach Rs. 450 by 2025. To buy Bank of Baroda shares, you can open a Demat and trading account with a stockbroker.
BOB Stock price prediction suggest the share price could reach Rs. 1000 by 2030. Please keep in mind, this may not be true, as share price is influenced by many external factors, such as the macroeconomic environment, company performance, and stock market sentiment.
Disclaimer: Co-founder of this blog holds BOB shares in his family portfolio. None of what I mentioned in this article ‘Bank of Baroda share price target 2023 to 2030’ is a financial advise. I am not a SEBI registered financial advisor. Please DYOR before investing.
What did we learn?
- 1 Stock History of BoB
- 2 Bank of Baroda in Recent News
- 3 Bank of Baroda Earnings Q1 FY2024: Summary
- 4 What I like about Bank of Baroda (for investment)?
- 5 How to buy Bank of Baroda Share?
- 6 Bank of Baroda Share Price Prediction 2023-2030
- 7 Bank of Baroda Financial Condition (2019 to 2023): Last 5 years
- 8 BOB Share Price Target by Experts
- 9 FAQs
- 10 Bank of Baroda Peers: PE, Marketcap Compared
- 11 Bank of Baroda in Future: Things you need to know
- 12 Conclusion: Should you buy Bank of Baroda shares in 2023?