{"id":47471,"date":"2024-11-06T12:00:46","date_gmt":"2024-11-06T06:30:46","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=47471"},"modified":"2024-11-06T15:52:34","modified_gmt":"2024-11-06T10:22:34","slug":"bob-fundamental-analysis-all-about-bank-of-baroda","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/bob-fundamental-analysis-all-about-bank-of-baroda\/","title":{"rendered":"BOB Fundamental Analysis: All About Bank of Baroda"},"content":{"rendered":"
<\/div>\n

Introduction:<\/h2>\n\n\n\n

India\u2019s banking system has remained one of the most stable globally, even during times of global<\/a> uncertainty. It has a healthy structure with low non-performing loans and strong capital and liquidity buffers. Increased infrastructure spending, quick project implementation, and ongoing reforms are set to further boost the sector\u2019s growth for both PSU banks and private banks. This building opportunity is also reflected in the NIFTY<\/a> PSU Bank index\u2019s yearly gains of 33.35% as of 23rd October 2024. <\/p>\n\n\n\n

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Source: NSE<\/a><\/p>\n\n\n\n

The growth in the industry can be leveraged by investing in the stocks of PSU banks like the Bank of Baroda. So, what is the Bank of Baroda share value? And how do investment advisory firm<\/a>s evaluate the BOB share price using fundamental analysis<\/a>? Let\u2019s understand. <\/p>\n\n\n\n

Overview of Bank of Baroda:<\/h2>\n\n\n\n

Bank of Baroda, often called BoB, is a nationalized bank headquartered in Vadodara, Gujarat. It was founded in 1908 by Maharaja Sayajirao Gaekwad III, initially serving as a private bank for the princely state of Baroda. In 1969, it was nationalized by the Government of India, which now holds a 63.97% stake. In 2019, the Bank of Baroda merged with Vijaya Bank and Dena Bank, making it India’s third-largest public sector bank. It offers a range of services, including personal, corporate, international, SME, rural, and NRI banking, along with treasury services. <\/p>\n\n\n\n

The bank is known for its digital presence through the ‘Bob World’ app, which provides 185+ banking services online. For net banking, the service is called Baroda Connect. BoB has an extensive network with around 8,168 branches in India, 94 branches abroad, and 11,475 ATMs, with 35% of its branches in rural areas. It also operates 150 currency chests across the country. <\/p>\n\n\n\n

Share Holding Pattern:<\/h2>\n\n\n\n

The shareholding pattern of the bank as of the quarter ending September 2024 is as follows-<\/p>\n\n\n\n

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Source: Company Report<\/a><\/figcaption><\/figure>\n\n\n\n

<\/p>\n\n\n\n

Key Management Personnel:<\/p>\n\n\n\n

The Bank of Baroda was founded on 20th July 1908 by Maharaja Sayajirao Gaekwad III, the Maharaj of Baroda. As of FY2024, the bank operates under the leadership of the following key management personnel:<\/p>\n\n\n\n

    \n
  1. Shri Debadatta Chand (MD and CEO):<\/li>\n<\/ol>\n\n\n\n

    Shri Debadatta Chand became the Managing Director and CEO of the Bank on 1st July 2023. With over 29 years of experience in banking and finance, he holds a B.Tech, an MBA, CAIIB, a Post Graduate Diploma in Equity Research, and a Ph.D. in Management. <\/p>\n\n\n\n

    Shri Chand started his career at Allahabad Bank in 1994 and worked at SIDBI before joining PNB in 2005. He became Executive Director at Bank of Baroda, overseeing corporate credit, institutional banking, treasury, and foreign exchange, before becoming MD & CEO in July 2023.<\/p>\n\n\n\n

      \n
    1. Chayani Manoj Sundar (CFO):<\/li>\n<\/ol>\n\n\n\n

      Chayani Manoj Sundar became the Chief Financial Officer (CFO) of Bank of Baroda on June 21, 2024. With over 19 years of experience in banking, he specializes in financial and credit operations. Sundar is a chartered accountant at ICWA with a bachelor’s degree in commerce. He succeeded Ian Gerard Desouza in this role.<\/p>\n\n\n\n

        \n
      1. Mr. Ravindra Singh Negi (Chief Risk Officer):<\/li>\n<\/ol>\n\n\n\n

        Mr. Negi is a seasoned banker with over 25 years of experience at the Bank of Baroda. He has expertise in risk management, treasury, corporate and retail credit, international banking, and general branch operations. Since 1st May 2024, he has served as the Group Chief Risk Officer (GCRO). <\/p>\n\n\n\n

        Before this, he oversaw global operations as the Deputy Chief Risk Officer for over two years. He also led the Bank\u2019s GCC operations as CRO in Dubai and headed the Global Mid Office (Treasury) during his 11.5-year journey in risk management.<\/p>\n\n\n\n

        Bank of Baroda Financials:<\/h2>\n\n\n\n
          \n
        1. Net Interest Income<\/a>:<\/li>\n<\/ol>\n\n\n\n

          Net Interest Income (NII) is the difference between the interest a bank earns from its lending activities (like loans, mortgages, and other credit products) and the interest it pays to depositors on savings accounts, fixed deposits, or other forms of borrowing. It’s the profit a bank makes from its core business of lending money after covering the cost of funds it provides to customers. As of FY2024, the bank\u2019s NII was Rs.44,721.53 crore. <\/p>\n\n\n\n

          \"\"
          Source: Annual Report<\/a><\/figcaption><\/figure>\n\n\n\n

          <\/p>\n\n\n\n

            \n
          1. Net Profit:<\/li>\n<\/ol>\n\n\n\n

            Bank of Baroda\u2019s net profit has been growing consistently after the loss incurred in 2017-18, and it increased significantly in 2021-22. As of FY2024, the bank’s net profit was Rs.17,788.78 crore. <\/p>\n\n\n\n

            \"\"
            Source: Annual Report<\/a><\/figcaption><\/figure>\n\n\n\n

            <\/p>\n\n\n\n

              \n
            1. Deposits:<\/li>\n<\/ol>\n\n\n\n

              Deposits represent the funds that customers place in the bank, such as savings accounts, fixed deposits, and current accounts. These are liabilities for the bank because the bank owes this money to its customers. As of FY2024, the total deposits for the bank reached Rs.13,26,958 crore, and the CASA deposits of Rs.5,14,366 crore. <\/p>\n\n\n\n

              Financial Year<\/td>Total Deposits (Rs. Cr.)<\/td>CASA Deposits (Rs. Cr.)<\/td><\/tr>
              2017-18<\/td>5,91,314.8<\/td>1,92,323.1<\/td><\/tr>
              2018-19<\/td>6,38,689.7<\/td>2,08,403.8<\/td><\/tr>
              2019-20<\/td>9,45,985.4<\/td>3,15,952.4<\/td><\/tr>
              2020-21<\/td>9,66,996.9<\/td>3,68,027.6<\/td><\/tr>
              2021-22<\/td>10,45,938.56<\/td>4,10,122.92<\/td><\/tr>
              2022-23<\/td>12,03,687.79<\/td>4,75,096.83<\/td><\/tr>
              2023-24<\/td>13,26,958<\/td>5,14,366<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

              Source: Annual Report<\/a><\/p>\n\n\n\n

                \n
              1. Advances:<\/li>\n<\/ol>\n\n\n\n

                Advances refer to the loans or credit the bank provides to individuals or businesses, including home loans<\/a>, personal loans, and business loans. They are assets for the bank since it earns interest income from borrowers. As of FY2024, the bank’s net advances were Rs.1065781.72 crore. <\/p>\n\n\n\n

                Financial Year<\/td>Advances (Rs. Crore)<\/td><\/tr>
                2017-18<\/td>4,27,431.8<\/td><\/tr>
                2018-19<\/td>4,68,818.7<\/td><\/tr>
                2019-20<\/td>6,90,120.7<\/td><\/tr>
                2020-21<\/td>7,06,300.51<\/td><\/tr>
                2021-22<\/td>777155.18<\/td><\/tr>
                2022-23<\/td>940998.27<\/td><\/tr>
                2023-24<\/td>1065781.72<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

                Source: Annual Report<\/a><\/p>\n\n\n\n

                Key Financial Ratios for Bank of Baroda:<\/h2>\n\n\n\n

                As of the financial year ending March 2024, the key financial ratios are as follows-<\/p>\n\n\n\n