This isn’t your 2017 BoB. It now makes more profit than some countries collect in taxes.
📌 At a glance:
In just 5 years, Bank of Baroda (BoB) has gone from barely surviving to minting ₹20,865 Cr profit in FY25 — a 12x jump from its FY21 bottom. With a P/E of just 6.16, RoE of 16%, and a solid 3.39% dividend yield, the stock trades at 0.87x book value — almost like the market’s refusing to believe its own eyes.
🏛️ About Bank of Baroda
- One of India’s Top 5 banks by assets and deposits
- Headquartered in Vadodara, Gujarat — but with global presence across 17 countries
- Offers full-suite banking: Retail, SME, Corporate, International, Treasury, and NRI services
- Merged with Vijaya Bank & Dena Bank in 2019, leading to asset cleanup and scale boost
- Aggressively digitalized — BOB World app now competes with private sector UX standards
🧑💼 Key Managerial Personnel
| Role | Name |
|---|---|
| Chairman | Hasmukh Adhia |
| MD & CEO | Debadatta Chand |
| EDs | Vikramaditya Singh, Lalit Tyagi |
| CFO | M.K. Rath |
📊 5-Year Financial Recap (FY21–FY25)
| Year | Revenue (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) | ROE (%) | Dividend Payout (%) | Net Worth (₹ Cr) |
|---|---|---|---|---|---|---|
| FY21 | 74,314 | 1,620 | 2.99 | 2 | 0 | 81,354 |
| FY22 | 73,385 | 7,933 | 15.18 | 9 | 19 | 90,833 |
| FY23 | 94,503 | 15,005 | 28.82 | 15 | 19 | 1,04,019 |
| FY24 | 1,18,379 | 18,869 | 36.29 | 17 | 21 | 1,18,677 |
| FY25 | 1,27,945 | 20,865 | 40.06 | 16 | 21 | 1,45,467 |
📈 5-Year Net Profit CAGR: ~86%
📈 5-Year EPS CAGR: ~87%
📉 Valuation? Still under ₹1x book.
🏦 From Burden to Beast Mode
- FY16–FY20: NPA hell, merger chaos, legacy issues
- FY21 onwards:
- Cleaning done
- Capital raised
- Credit costs normalized
- Retail + Digital banking scaled up
- FY25: Crossed ₹20,000 Cr profit club, joining SBI and HDFC Bank
🧮 Operating Highlights (FY25)
| Metric | FY25 Value |
|---|---|
| Revenue | ₹1,27,945 Cr |
| Interest Income | ₹78,265 Cr |
| Net Profit | ₹20,865 Cr |
| EPS | ₹40.06 |
| Dividend Declared | ₹8.35 / share |
| ROE | 16% |
| CASA Ratio | ~39% |
| GNPA Ratio | ~2.92% (est.) |
| NNPA Ratio | ~0.76% (est.) |
BoB now beats private banks like Kotak and Yes Bank on both profit and asset quality. Let that sink in.
📉 Valuation vs Reality
| Metric | Value |
|---|---|
| Current Price (CMP) | ₹246 |
| Book Value | ₹283 |
| P/E | 6.16x |
| P/B | 0.87x |
| Dividend Yield | 3.39% |
💥 That’s deep value screaming from a ₹20K crore profit giant.
🏛️ Balance Sheet Growth (FY21–FY25)
| Metric | FY21 | FY25 | Change |
|---|---|---|---|
| Deposits | ₹9.96 L Cr | ₹14.96 L Cr | +50% |
| Advances | ₹6.98 L Cr | ₹11.20 L Cr (est.) | +60% |
| Net Worth | ₹81,354 Cr | ₹1,45,467 Cr | +79% |
💸 With no further equity dilution, net worth doubled in 5 years — purely through profits.
💡 Strategic Wins
- 🔥 Strong growth in Retail & MSME loans
- 🌍 International banking arm profitable again
- 📱 Digital transformation via bob World app (90%+ transactions)
- 🧼 NPAs lowest in a decade — finally out of the shadow of 2015–2018 mess
- 💳 Co-branded credit cards and RuPay traction rising
🔮 Fair Value Estimate (EduInvesting Range)
Let’s assume:
- FY26 EPS grows 15% → ~₹46
- Valuation re-rating to 1x Book or 8x P/E
- Dividend yield sustains >3%
🎯 Fair Value Range: ₹285 – ₹320
Still 15–30% upside from CMP — if markets stop treating BoB like it’s 2016.
🧠 EduInvesting Take
“This PSU finally fixed its teeth, and now nobody wants to smile at it.”
- ✅ Profits = Real
- ✅ NPAs = Controlled
- ✅ RoE = Private-bank level
- ✅ Dividend = Steady
- ❌ Market trust = Missing
- ❌ PSU tag = Unfairly punished
BoB is what Axis Bank looked like in 2012 — undervalued, misunderstood, but transforming.
⚠️ Risks & Red Flags
- 🧨 Still PSU-owned: 64% Government holding
- 🐌 Slow bureaucracy in scaling digital ops
- 📉 Global slowdown may affect international books
- 🤷♂️ Perception lag: Market still treats it like a broken bank
🏁 What to Watch in FY26
- ₹8,500 Cr capital raise approved in FY25 — use of funds critical
- Will BoB breach ₹50 EPS club?
- Will re-rating happen post FY26 AGM?
- If dividend crosses ₹10 — investors may finally wake up.
🏷️ Tags:
Bank of Baroda 5-Year Recap, PSU Bank Earnings, BOB FY25 Results, Bank of Baroda Dividend, Undervalued PSU Stocks, EduInvesting Bank Analysis, PSU Bank Turnaround, Deep Value Stocks India
✍️ Written by Prashant Marathe
📅 8 June 2025
