Bank of Baroda is a state-owned banking and financial services company headquartered in Vadodara, Gujarat, India. It was founded in 1908 and is one of the oldest and largest banks in India. Bank of Baroda has a wide network of branches and ATMs in India and also has a presence in over 20 countries across the globe.
The bank offers a range of banking and financial services including savings accounts, current accounts, loans, credit cards, debit cards, insurance, and investment products. It also provides digital banking services such as internet banking, mobile banking, and online bill payments.
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Bank of Baroda Overview
Bank of Baroda was established in 1908 in Baroda, now known as Vadodara, by Maharaja Sayajirao Gaekwad III. It started with a paid-up capital of Rs. 1 lakh and had just one branch at the time. In the 1950s and 1960s, the bank expanded rapidly, both in India and overseas. In 1969, Bank of Baroda was nationalized by the Indian government along with 13 other banks.
Products and Services: Bank of Baroda offers a wide range of banking and financial products and services to individuals, businesses, and corporates. Some of the key products and services offered by the bank are:
- Deposit accounts: Savings accounts, current accounts, fixed deposits, recurring deposits, etc.
- Loans: Personal loans, home loans, car loans, education loans, business loans, etc.
- Credit cards: Bank of Baroda has tie-ups with Visa and Mastercard and offers credit cards with various features and benefits.
- Debit cards: The bank offers debit cards with features like cashback, rewards, and discounts.
- Insurance: Bank of Baroda offers various insurance products like health insurance, motor insurance, travel insurance, and life insurance.
- Investment products: Bank of Baroda offers various investment products like mutual funds, fixed deposits, recurring deposits, etc.
- Digital banking: The bank has a robust digital banking platform that offers services like internet banking, mobile banking, UPI, etc.
Business Model of Bank of Baroda
The business model of Bank of Baroda is based on providing a wide range of banking and financial services to its customers through various channels. Here are the key elements of its business model:
- Customer-centric approach: Bank of Baroda is known for its customer-centric approach and focuses on providing quality services to its customers. The bank offers a range of products and services tailored to the needs of individuals, businesses, and corporates.
- Diversified portfolio: Bank of Baroda has a diversified portfolio of products and services, including deposit accounts, loans, credit cards, debit cards, insurance, and investment products. This helps the bank to generate revenue from multiple sources and reduces its dependence on any particular product or service.
- Strong distribution network: Bank of Baroda has a strong distribution network with a wide network of branches and ATMs in India and abroad. This helps the bank to reach out to a large customer base and offer its products and services to them.
- Digital banking: Bank of Baroda has a robust digital banking platform that offers a range of services like internet banking, mobile banking, UPI, and online bill payments. This helps the bank to reach out to tech-savvy customers and offer them convenient banking services.
- Risk management: Bank of Baroda has a strong risk management system in place to manage credit, market, and operational risks. The bank follows a prudent lending policy and maintains a healthy asset quality.
- Corporate social responsibility: Bank of Baroda is committed to corporate social responsibility and is involved in various social initiatives like education, healthcare, and environment conservation. This helps the bank to build a positive brand image and earn the trust of its stakeholders.
Bank of Baroda Share Price
Bank of Baroda is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). Its stock symbol is “BANKBARODA”.
As of March 4, 2023, the market price of Bank of Baroda stock on the NSE was approximately 172.60 Indian Rupees (INR) per share, and on the BSE it was approximately 172.50 INR per share.
| Company Name | Bank of Baroda (BOB) |
| Share Name | BANKBARODA |
| Founded in | 1908 |
| Headquarters | Vadodara |
| CEO | Sanjiv Chadha |
| Revenue | Rs. 82,859.5 crore (US$10 billion) (FY 2021) |
| Market Capitalization | INR 894.39 Billion |
| Primary Exchange | NSE, BSE |
| Official Website | www.bankofbaroda.in |
Shareholding of Bank of Baroda
The shareholding of Bank of Baroda is as follows:
- Promoter and promoter group: 63.45%
- Foreign institutional investors (FIIs): 12.63%
- Banks and financial institutions: 7.51%
- Insurance companies: 1.65%
- Mutual funds and UTI: 6.11%
- Individual shareholders: 2.92%
- Others: 5.73%
Annual Result of Bank of Baroda- Click Here
Bank of Baroda Share Price Target 2023, 2024, 2025, 2026, 2027, 2030, 2040, 2050
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2023 | ₹200 | ₹210 |
| 2024 | ₹215 | ₹230 |
| 2025 | ₹240 | ₹270 |
| 2026 | ₹280 | ₹310 |
| 2027 | ₹340 | ₹390 |
| 2030 | ₹490 | ₹570 |
| 2040 | ₹1050 | ₹1180 |
| 2050 | ₹2350 | ₹2550 |
Note:- “That these share price targets for “Bank of Baroda Share” are only provided for the purpose of reference and that this prediction will only hold true in the event that there is optimism in the market. Any uncertainties regarding the company or the current state of the global market will not be addressed in this analysis.”
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BOB subsidiaries and joint ventures
Bank of Baroda has several subsidiaries and joint ventures, both in India and abroad. Here are some of its major subsidiaries and joint ventures:
- Baroda Global Shared Services Ltd.: This subsidiary provides shared services to Bank of Baroda and its subsidiaries, including back-office operations, IT, and human resources.
- Baroda Asset Management India Ltd.: This subsidiary offers a range of mutual funds and portfolio management services to retail and institutional investors.
- Baroda Capital Markets Ltd.: This subsidiary provides investment banking services, including advisory services for mergers and acquisitions, debt and equity underwriting, and other capital market-related services.
- BOB Capital Markets Ltd.: This is a joint venture between Bank of Baroda and the financial services firm BNP Paribas. The joint venture provides investment banking and advisory services to clients in India.
- IndiaFirst Life Insurance Company Ltd.: This is a joint venture between Bank of Baroda, Union Bank, and UK-based Legal & General. The joint venture offers a range of life insurance products to customers in India.
- Baroda Home Loans Ltd.: This subsidiary provides housing finance to customers in India.
- Bank of Baroda (Kenya) Ltd.: This is Bank of Baroda’s subsidiary in Kenya, which offers a range of banking services to customers in the country.
- Bank of Baroda (Uganda) Ltd.: This is Bank of Baroda’s subsidiary in Uganda, which offers a range of banking services to customers in the country.
Bank of Baroda Share Price Target 2023
Bank of Baroda’s net profit for the year 2021 was Rs. 1,377 crore, compared to a net loss of Rs. 864 crore in the previous year. the fiscal year ended March 31, 2021, bank’s operating profit for the year was Rs. 17,820 crore, which was an increase of 1.2% compared to the previous year.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2023 | ₹200 | ₹210 |
Bank of Baroda Share Price Target 2024
The bank’s gross non-performing assets (NPAs) ratio stood at 8.87%, while the net NPA ratio was 2.39%. This was an improvement compared to the previous year, when the gross NPA ratio was 9.40% and the net NPA ratio was 2.83%.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2024 | ₹215 | ₹230 |
Bank of Baroda Share Price Target 2025
Bank of Baroda’s net profit for the year 2021 was Rs. 1,377 crore, compared to a net loss of Rs. 864 crore in the previous year. the fiscal year ended March 31, 2021, bank’s operating profit for the year was Rs. 17,820 crore, which was an increase of 1.2% compared to the previous year.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2025 | ₹240 | ₹270 |
Bank of Baroda Share Price Target 2026
Bank of Baroda’s Net Interest Income for the year was Rs. 24,798 crore, which was a decrease of 3.6% compared to the previous year. The bank made total provisions of Rs. 18,738 crore during the year, which included Rs. 9,561 crore for NPAs and Rs. 6,631 crore for potential impact of COVID-19.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2026 | ₹280 | ₹310 |
Bank of Baroda Share Price Target 2027
Bank of Baroda’s capital adequacy ratio (CAR) stood at 14.05% as of March 31, 2021, which was above the regulatory requirement of 11.5%. Bank of Baroda won “Best Digital Bank Award at the Asian Banker Awards 2021”.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2027 | ₹340 | ₹390 |
Bank of Baroda Share Price Target 2030
Bank of Baroda’s previous year annual results show a mixed performance, with some improvements in asset quality and net profit, but a decline in net interest income. The bank’s focus on improving asset quality and making provisions for potential risks has resulted in a stronger balance sheet.
| Target Year | 1st Target | 2nd Target |
|---|---|---|
| 2030 | ₹490 | ₹570 |
Future of Bank of Baroda Share
In recent years, Bank of Baroda has been taking several steps to improve its financial performance, such as implementing a cost rationalization program, expanding its digital offerings, and focusing on retail banking. In the fiscal year 2021, the bank reported a net profit of Rs 1,238 crore, up from a net loss of Rs 864 crore in the previous year. Its gross non-performing assets (GNPAs) ratio improved to 8.78% in March 2021 from 9.40% in December 2020.
The bank has a strong domestic presence, with over 9,500 branches and more than 13,000 ATMs across the country. It also has a presence in over 20 countries through its overseas branches, subsidiaries, and joint ventures. Its international operations contribute around 20% of the bank’s total revenue.
Bank of Baroda has been focusing on digital transformation, launching new products and services, and improving its digital capabilities. It has also been expanding its retail banking offerings, which could help the bank diversify its revenue streams and reduce its dependence on corporate lending.
Risk of Bank of Baroda Share
Bank of Baroda is exposed to various risks that could affect its financial performance and future prospects. Some of the key risks that the bank faces include:
- Credit risk: Bank of Baroda’s core business involves lending money to borrowers, which exposes it to credit risk. This risk arises from the possibility that borrowers may default on their loans, resulting in losses for the bank. The bank manages this risk by conducting thorough credit assessments, monitoring borrowers’ creditworthiness, and diversifying its loan portfolio.
- Market risk: The bank is also exposed to market risk, which arises from fluctuations in interest rates, exchange rates, and other market variables. These fluctuations could affect the bank’s earnings, asset quality, and capital adequacy. The bank manages this risk by maintaining a diversified portfolio and implementing appropriate risk management measures.
- Operational risk: Bank of Baroda is exposed to operational risk, which arises from internal or external factors that could result in financial loss, such as system failures, fraud, or errors. The bank manages this risk by implementing robust operational procedures, ensuring compliance with regulations, and investing in technology and infrastructure.
- Liquidity risk: The bank is exposed to liquidity risk, which arises from the possibility that it may not be able to meet its financial obligations as they come due. The bank manages this risk by maintaining an adequate level of liquid assets and managing its funding sources effectively.
- Regulatory risk: As a bank operating in India, Bank of Baroda is subject to various regulatory requirements and changes in regulations could affect its operations, earnings, and capital adequacy. The bank manages this risk by closely monitoring regulatory developments and ensuring compliance with regulations.
FAQs –
Bank of Baroda’s future prospects depend on various factors, including the bank’s ability to manage risks, adapt to changing market trends, and effectively execute its growth strategy. In year 2023 future prediction of bank of baroda share is Rs. 200/-
Target Price of BoB Share in 2030 is approx Rs.500/- but before investing check financial result of company or take help from financial advisor.
Bank of Baroda is one of the leading public sector banks in India, with a strong domestic and international presence. The bank has been taking several steps to improve its financial performance, such as expanding its digital offerings, focusing on retail banking, and reducing non-performing assets.
Next Target of Bank of Baroda stock is Rs. 200/-
