Bank of Baroda Analysis

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Company Profile :  Bank of Baroda, state run bank was set up by Maharaja Sayajirao Gaekwad in July 1908. Right now Govt of India is owner of the bank. Presently it has a network of 3454 branches across India and 86 branches overseas spread among Australia, Bahamas, Bahrain, Belgium, China, Fiji, Malaysia, Hong Kong, South Africa, Singapore, Oman, UK, US.

Just like any other bank, Bank of Baroda also offers variety of services deposits, loans, debit and credit card, Demat service, ECS, Agricultural loan,locker services, Project Finance, foreign currency loans, working capital finance, Treasury products, wealth management products to INSURANCE AND MUTUAL COMPANY. In insurance it offers services to HDFC and National Insurance Company. In mutual funds it provides services to UTI, Birla Sun Life, Reliance Mutual Fund, Sundaram BNP Paribas, Franklin Templeton Investments and Baroda Pioneer Asset Management Company. The bank also holds stake in UTI, also holds promote Baroda Pioneer Asset Management Company Ltd and India First Life Insurance Company Limited.

Share Holding Pattern

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Financials and Ratio :

 2010-112011-122012-132013-142014-15 2015-16
Loan book 228676.36287377.29328185.76397005.81428065.14383770.18
ROE20.1518.2214.0112.618.530
ROA 1.181.110.810.680.47(0.80)
EPS 116128108.84107.3815.83(23.89)
Book Value 535.72666.29756.64835.56179.62173.99
Efficiency 29.8426.3826.9527.3829.9647.15
Dividend per Share 16.51721.521.53.200
CASA 25.3325.7426.3826.36
Net NPA to Loan Book 011225
Tier 1 Capital 10111091011

Future Prospects : As a Public Sector Undertaking, Some of the Financials of the bank are looking bad. But still bank is keeping its efficiency, which is good sign. As in India infrastructure development is important and hardly any Private sector bank is lending to infrastructure sector, it is very important play for infrastructure.

Recently Bank take hit with NPA and make big provisions which is visible to bank efficiency but still it is not very big. Bank also keeping high capital adequacy rate which is very good. As it is public sector undertakings, the bank enjoys big network of Branches and ATM. In recent time, though Credit to deposit ratio is going high and Demonetisation makes it more worst as the liquidity is not for long-term , I am expecting that bank will suffer more.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter