Bank of Baroda (BOB) is an Indian-based financial services and banking company headquartered in Vadodara in Gujarat. Vadodara was earlier called as Baroda. The bank operates in the domestic and overseas markets with more than 5,538 branches.
*Note: Prices that are specified below is based on INR
BOB Historical Share Price (NSE)
Market capitalisation of Bank of Baroda
The market capitalisation of Bank of Baroda as of early March 2018 was Rs.30,347.76 crore.
Wealth of Bank of Baroda and recent performanceQ1 FY 2018-19
- For the quarter ended on June 30, 2018, Bank of Baroda reported its total income to be at Rs.12,787.7 crore. With respect to the June quarter of the previous fiscal year, it marks an increase of a little over Rs.700 crore.
- The net interest income of the bank grew by 28.7% y-o-y to Rs.4,381 crore.
- Provisions for bad loans fell by 18% y-o-y to Rs.1,759.7 crore. Consequently, the public lender reported better-than-expected profits for the June quarter.
- The net profit after tax for the period was reported to be worth Rs.528.2 crore - an improvement of more than 150% y-o-y. Considering the performance of the company with respect to the March quarter, it has done splendidly seeing that it reported a loss of Rs.3,100 crore back then.
- Considering the asset quality of the bank, its gross NPA (non-performing asset) for the quarter was 12.46% as against 11.40% for the same quarter of the previous year. As for its net NPA, it grew marginally over the year from 5.17% to 5.40%.
- For the year ended on March 31, 2018, Bank of Baroda reported its total income to be at Rs.50,305 crore, as against Rs.48,957 crore reported for the previous fiscal year.
- However, the profitability of the bank took a massive hit on account of an increase in the provisions for bad loans. For the financial year 2017-18, the provisions for stressed loans were reported to be at Rs.14,211 crore as against Rs.7,680 crore reported for the previous year.
- Owing to this significant increase in provisions, the lender reported a loss of Rs.2,431.8 crore. For the FY17, the bank had reported a profit of Rs.1,383 crore.
- For the fiscal year 2017-18, Bank of Baroda reported its gross NPA to be at 12.26%, as against 10.46% reported for the previous year. A similar increase was also seen in the net NPA segment, with the percentage rising from 4.72% to 5.49% y-o-y.
- The net profit margin of Bank of Baroda, a public sector lender, was down by 56% at Rs.112 crore for the third quarter ended 31 December 2017. The third quarter of the FY 2016-2017 had registered a net profit of Rs.253 crore.
- During the Q3 FY 2017-2018, the overall income of the bank accelerated by 6.53% as against Rs.12,181 crore, which was registered during the Q3 of the FY 2016-2017.
- The bank registered a 40.20% rise in the net interest income. The non-performing assets (NPAs) of Bank of Baroda have touched 11.31% of the gross advances by the end of the third quarter.
- During the same period, the net NPAs were down to 4.97% of the net advances and the bad loan provisions were up by 92.61%. NPA provisioning coverage ratio was at 68.03%.
- The total advances of Bank of Baroda raised by 14.12% and the net interest margin by 2.72% during the same quarter. The return on assets has fallen to 0.07% from 0.21% during the quarter.
Bank of Baroda Stock Trends in 2018
- On January 2, 2018, the opening stock price of Bank of Baroda was Rs.161.90. The shares didn’t make any discernible gains in January. In February, the shares took a sharp hit on account of turbulences in the international markets. The scrip went below the Rs.150 mark with the closing price on February 28 being Rs.141.95.
- Through the months of March and April, the Bank of Baroda share price stayed below the Rs.150 mark. The scrip didn’t incur any sharp losses in this period. In the month of May, the shares were seen trading hands at levels varying from Rs.130 - Rs.145.
- Over the course of June, the shares lost a little over 15% to touch the Rs.110 mark. In early July, the scrip reached its 52-week low at Rs.109.50. For the remainder of the month, the shares remained close to those levels.
- In the final of week of July, share price rose once again to reach their previous levels at Rs.150. In September, the shares were seen trading hands at levels close to Rs.145.
Stock trends in 2016 Bank of Baroda
- The stock price of Bank of Baroda during the first week of January 2016 was Rs.159 approximately. It was at Rs.125 approximately towards the end of the month. Stock prices began increasing marginally after that. The share price of Bank of Baroda was up by Rs.1 at the beginning of February 2016.
- Stocks were priced at Rs.145.40 approximately at the starting of March 2016. They stood at Rs.147 at the end of March 2017. Between January 2016 and March 2016, the equity value of Bank of Baroda was down by Rs.12.
- By the end of the first week of April 2016, the stock value of the bank stood at Rs.143.40 and further increased to Rs.157.90 by the end of the month. At the beginning and closing of May 2016, stock prices were Rs.148.70 and Rs.138.40 respectively. During the first week of June 2016, the stock prices of the bank produced an upward trend.
- They extended to grow in July 2016. The opening stock price was Rs.156.60 and the closing stock price was Rs.151.70 respectively. In August 2016, the opening price was Rs.147.50 and the closing price was Rs.164.15 respectively. During the first week of September 2016, the share price of Bank of Baroda was close to Rs.175. It slid to Rs.167.40 towards the end of the month.
- As on the opening date of October 2016, the stock of Bank of Baroda was priced at Rs.169.85. Over a period of the next three months, the share price was Rs.153.40. The year had many clues for both long-run and short-run investors to trade the equities of Bank of Baroda wisely and yield a decent amount of returns.
Stock trends in 2017 Bank of Baroda
- There were many noticeable events during the first quarter of 2017. One of the major events is the change in directorship, which was announced in January 2017. In fact, a change in the management influences the share price. The equities of Bank of Baroda started trading at Rs.148.90 at the beginning of the New Year. By the end of March, it was at Rs.172.75. During the quarter, the equity share was up by Rs.24.
- Stock prices fell to Rs.172.40 at the beginning of April 2017. By the end of June 2017, they were at Rs.161.65. Between April 2017 and June 2017, there were down by Rs.11 owing to poor fundamentals. Profits were low during the same period.
- During the first week of July 2017, the bank’s stocks traded at Rs.160. Towards the end of the month, they were up Rs.6. They again slid to Rs.160 at the starting of August 2017. The month closed with less than Rs.140. By the end of September 2017, the equity value of Bank of Baroda was Rs.137.60.
- After falling continually over the last two months, the share price of the bank gained during the first week of October 2017. There were at Rs.170 approximately since the fundamentals of the bank were good. Towards the end of November 2017, they were at Rs.171. By the end of 2017, the share price of Bank of Baroda was Rs.161 approximately.
Should I buy Bank of Baroda Stocks?
- Bank of Baroda is a renowned public-sector baking entity. Undoubtedly, it is one of the best banking companies for stock investors. If we look at the stock performance over the last 2-3 years, stock prices were not steady. For some period of time, they showed a positive trend and for some period of time, they produced a declining trend.
- Whether or not to hold the stocks of Bank of Baroda is fully based on the fundamental and the technical analysis. The same hint will be offered to both long-run and short-run investors. If you are holding stocks for a shorter period of time, your fundamental and technical readings should be strong.
- The fundamentals of Bank of Baroda have been fine, including EPS, DPS and liquidity. The net profit has been consistent over the last 2-3 years. These could be better signs for you to buy the stocks of Bank of Baroda in the long-run.
- As of early March 2018, technical analysis was in favor of stock traders. According to a 5-day moving average, investors may consider buying stocks at Rs.129.80. According to a 10-day moving average, the stocks of Bank of Baroda may be bought at Rs.130.29. Stock investors may consider selling at Rs.134.71 according to a 50-day moving average. As per a 100-day moving average, the equities of the bank may be sold at Rs.138.82.
Introduction to Bank of Baroda
Bank of Baroda is a premier banking company offering a wide range personal financial products and services to corporate and retail customers. The bank is headquartered in Vadodara, which is the third biggest town in Gujarat. The corporate office of the bank is located in Mumbai, the capital city of Maharashtra. In India, it is the second largest bank by assets. As of July 2017, Bank of Baroda operates with a network of 5,538 domestic and overseas divisions. The total number of ATMs is estimated to be 10,441.
Bank of Baroda offers attractive SB and current account schemes. The fixed deposit and recurring deposits of the bank are unique. It is one of the most preferred brands for various types of loans, including personal loans, education loans, housing loans, vehicle loans, property loans and other loans. The bank provides the best credit card and debit card offers. Prepaid cards are also issued. The wealth products of the bank include health insurance, general insurance, mutual funds, Baroda e-trade, and Baroda m-Invest App. The bank also has a vast range of financial products to be offered to corporate clients. The prime products include loans and advances and deposits.
History of Bank of Baroda
Bank of Baroda was conceptualised by the Baroda’s Maharaja, Maharaja Sayajirao Gaekwad in July 1908 in Baroda. The Government of India had nationalised it in July 1969 along with other notable commercial banking entities in India.
- In 1953, Bank of Baroda had opened branches in Kampala and Mombasa.
- In 1954, the second branch was opened by the bank in Kenya.
- In 1958, Hind Bank Limited was merged with Bank of Baroda.
- In 1957, Bank of Baroda had extended its operations to London.
- In 1961, New Citizen Bank of India was merged with Bank of Baroda.
- In 1963, Surat Banking Corporation was merged with Bank of Baroda.
- In 1964, Tamil Nadu Central Bank was merged with Bank of Baroda.
- In 1964, Umergaon People Bank was merged with Bank of Baroda.
- In 1988, Traders Bank Limited was merged with Bank of Baroda.
- In 1998, Bareilly Corporations Bank Limited was merged with Bank of Baroda.
- In 2002, Benares State Bank Limited was merged with Bank of Baroda.
- In 2004, South Gujarat Local Area Bank Limited was merged with Bank of Baroda.
- In 2011, Memon Cooperative Bank Limited was merged with Bank of Baroda.
Management of Bank of Baroda
Ravi Venkatesan is presently serving as the Non-executive Chairman of Bank of Baroda. He has a BS from IIT Bombay and an MS from Purdue University. He is an MBA from Harvard Business School. He is the author of a famous book “Conquering the Chaos: Win in India, Win Everywhere” This book was published by Harvard Business Review. Between 2004-2011, he served as the Chairman of Microsoft India. Ravi Venkatesan was chosen as one of the best management thinkers in India by Thinkers50.
Managing Director and Chief Executive Officer
P S Jayakumar is presently serving as the Managing Director and Chief Executive Officer of Bank of Baroda. By qualification, he is a Chartered Accountant. He also holds a Post Graduate Diploma in Business Management from XLRI. Prior to this assignment, P S Jayakumar was the Chief Executive Officer (CEO) of VBHC Value Budget Housing. He spent more than 23 years in Citibank in Singapore and India. At Citibank, he served multiple positions.
Mayank Mehta is presently working as an Executive Director of Bank of Baroda. He was appointed on 22 January 2016. Previously, he was the Chief Financial Officer and General Manager at Union Bank of India. He is a science graduate from South Gujarat University. He commenced his career in Union Bank of India in 1977. In 2012, he became the General Manager. Mayank Mehta has a good amount of experience working on different banking modules.
Bank of Baroda head office
Baroda Bhavan, R C Dutt Road,
Alkapuri, Baroda -390007
Bank of Baroda corporate office
Baroda Corporate Centre,
Plot No. C-26, Block G,
Bandra Kurla Complex, Bandra (East), Mumbai 400051
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