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INVESTMENT INSIGHTS

Check Before You Invest : Bank Of Baroda

BSE: 532134 NSE: BANKBARODA ISIN: INE028A01039
  |   Sector:  BFSI   |   Industry:  Bank - Public

Snapshot

Q.1 Which industry/sub-sector does Bank Of Baroda belong to?
Bank Of Baroda belongs to the BFSI sector, operating specifically within the Bank - Public segment.
Q.2 Is Bank Of Baroda a good quality company?
Bank Of Baroda is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Bank Of Baroda undervalued or overvalued?
Bank Of Baroda appears Fair, as its key valuation ratios are in line with their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios Current 5-year
Historic Median
Price to Earnings 7.19 7.42
Price to Book 0.78 0.95
Price to Sales 0.93 1.07
EV to EBITDA 6.68 5.49
Q.4 Is Bank Of Baroda a good buy now?
Bank Of Baroda is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

  • How has it performed on generating Profits?

    By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.

  • How efficiently has it grown and managed operations?

    By checking its Total Asset growth and Cost-to-Income ratio.

  • How strong is its Capital position and Asset Quality?

    By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Bank Of Baroda?
Bank Of Baroda Total Income growth is 3.38% for FY-2026, which is below its 5-year CAGR of 11.34%, indicating slower growth.

Q.2 Return on Assets of Bank Of Baroda?
Bank Of Baroda Return on Asset is 1.1%, which is in line with its 5-year historical median of 1.1%, indicating stable earnings on assets.
Current Level 5-year
Historic Median
NIM (%) 2.45 2.7
PPOP (%) -0.61 7.43
RoA (%) 1.1 1.1

Q.3 Return on Equity (ROE) of Bank Of Baroda?
Bank Of Baroda Return on Equity is 13.8% for FY-2026, which is below its 5-year historical median of 15.3%, indicating the business is making worse use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Bank Of Baroda?
Bank Of Baroda Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is -0.61% for FY-2026, which is below its 5-year median(7.43%), indicating decreasing margins.

Q.5 Net Interest Margin of Bank Of Baroda?
Bank Of Baroda Net Interest Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 2.45% for FY-2026, which is below its 5-year median( 2.7%), indicating decreasing margins.

Q.6 Does its ROIC exceed its WACC?
Bank Of Baroda return on invested capital (ROIC) is 26.5% for FY-2026, is higher than its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Bank Of Baroda?
Bank Of Baroda Total Asset growth is 12.8% for FY-2026, which is above its 5-year CAGR of 11.7%, indicating faster growth.

Q.8 Cost to Income ratio of Bank Of Baroda?
Bank Of Baroda Cost to Income ratio which represents the cost incurred for every Rs.100 earned is 49.2% for FY-2026, is in line with its historical 5-year median of 47.9%, indicating stable cost management.

C: How strong is the bank’s capital position and asset quality?

Q.9 Capital Adequacy ratio of Bank Of Baroda?
Bank Of Baroda Capital Adequacy ratio (CAR) is 15.8% for FY-2026, which is above the regulatory requirement of 12%, indicating strong capital position.

Q.10 Asset Quality of Bank Of Baroda?
Bank Of Baroda Gross Non-Performing Assets, which are loans overdue by more than 90 days, is 1.89% for FY-2026, which is below its 5-year median 2.92%, while Net Non-Performing Assets, which is GNPA minus provisions made for bad loans is 0.45% which is below its 5-year median( 0.68%), indicating improving asset quality.

Ownership & governance

D: Promoter shareholding and pledge status of Bank Of Baroda?

Q.1 Promoter shareholding and pledge status of Bank Of Baroda?
Promoters hold 63.97% of the Bank Of Baroda, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Bank Of Baroda performance compare with that of its Peers?

Q.1 AUM Growth of Bank Of Baroda vs Industry Peers?
Bank Of Baroda AUM CAGR is 11.7%, compared to the 5-year industry median CAGR of 9.78%, indicating faster growth and gaining its market share.

Q.2 Profit metrics (NIM, PPOP, RoA) of Bank Of Baroda vs industry peers
Bank Of Baroda profit metrics are in line with the industry median level of 4.86%, indicating similar profitability compared to peers.
Profit Metrics
Current Level 5-year
Industry Median
NIM (%) 2.45 2.64
PPOP (%) -0.61 10.93
RoA (%) 1.1 1

Q.3 Operating efficiency of Bank Of Baroda vs industry peers?
Bank Of Baroda Cost to Income (47.8) is in line with the industry median of (49.85); while the current ROE (15.3) are below than the 5-year average Industry ROE (16.65). This shows that the business is positioned in the middle quartile of the industry.
Operating Efficiency
Current Level 5-year
Industry Median
NIM (%) 2.45 2.64
PPOP (%) -0.61 10.93
RoA (%) 1.1 1
Cost to Income (%) 49.2 49.85
ROE (%) 13.8 16.65

Valuation & price assessment

Q.1 Stock return of Bank Of Baroda over the last decade?
Over the last 9 years, the stock has delivered a CAGR of 4.1% based on the current price.
9Y 5Y 3Y 1Y
Share Price
CAGR		 4.1% 18.8% 5.6% -16.2%
Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?
Valuation Ratios Current 5-year
Historic Median		 5-year
Industry Median
Price to Earnings 7.19 7.42 9.90
Price to Book 0.78 0.95 1.17
Price to Sales 0.93 1.07 1.20
EV to EBITDA 6.68 5.49 5.36
Q.3 Valuation ratios of Bank Of Baroda vs historical and industry averages?
The current Price-to-Book (P/B) ratio of 0.78 is lower than its historical median of 0.95, indicating that the stock is trading below its historical average valuation.

Check more companies

1. State Bank Of India
2. Union Bank Of India
3. PNB
4. Bank Of Baroda
5. Indian Bank
6. Canara Bank

Check trending companies

1. Cohance Lifesciences Ltd.
2. HDFC Asset Management Company Ltd.
3. Nippon Life India Asset Management Ltd.
4. Piramal Pharma Ltd.
5. Cochin Shipyard Ltd.

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