🏦 Bank of Baroda: PSU Bank with Private Ambitions or Just a Low-P/E Trap?
At a Glance
Bank of Baroda has gone from NPA-ridden dinosaur to a 15.5% ROE dividend-yielding machine. It’s now India’s third-largest public sector bank by market cap with ₹20,865 Cr net profit in FY25 and a P/E of just 5.9x. So… value buy or value trap?
1. 🧲 Introduction with Hook
Once upon a time, Bank of Baroda was just another PSU bank where profits went missing and NPAs went partying.
But today? It’s:
Printing ₹5,400 Cr quarterly profits
Paying 3.5% dividend yield
Trading at 0.84x Book Value
Yet the stock still falls on good results. Why? Let’s dive in.
2. 🏦 WTF Do They Even Do?
Baroda Bhai handles it all:
Retail & Corporate Banking Home loans, MSME, working capital, corporate credit.
NRI & International BoB has a large presence in the UAE, UK, and Mauritius.
Digital Push BOB World app (which also saw controversy), and QR code war with fintechs.
Treasury & Rural One of the most spread-out PSU banks with 9,300+ branches.
