Bank of Baroda

                                                             Bank of Baroda

                                    Bank of Baroda- Started reporting improved asset quality

                                                 Bank of Baroda

About Bank

Bank of Baroda is a leading public sector bank, which was started on July 20, 1908. Services offered by the bank includes:

Retail banking=It offers products and services such as deposits, loans, credit cards, Demat services.

Rural and Agri banking=It offers deposits, agricultural loans, locker services, etc. to rural customers and agricultural sector.

Corporate banking= It provides finance, foreign currency loans, working capital finance, treasury products, etc. to the corporate sector.

After its merger with Vijaya Bank & Dena Bank, the bank is expected to report better numbers in coming years.

Financials

Its return on assets is going up by 60-70 bps.

Good numbers are expected for the first quarter of 2021-22.

Net Interest Margin (NIM) of bank is improving because of the international operations.

Bank of Baroda domestic casa ratio reported year on year improvement of 213 basis points in the 4^th quarter and brings down its cost of funds.

Bank continues to accumulate current and saving accounts of PSU banks and strong private sector banks.

BoB first-quarter net interest income is expected to report q-o-q growth of 11%  and y-o-y growth of 16%.

Shift to a low tax rate is another factor that will enhance its earnings.

Valuations

PBV= 0.50

PE= 26.82

NIM= 2.58

Latest Update

In order to ‘serve the unserved MSMEs‘the BOB announced its co-lending partnership with U GRO Capital. Later is an NBFC that specializes in the provision of loans to micro, small and medium enterprises.

This new joint co-lending venture is available in the city of Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Mumbai, and Pune as of now.

In this blog we disussed about "Bank of Baroda"