Out of 35 analysts tracking the stock, 26 have given a ‘buy’ recommendation, 8 suggest holding, and only 1 recommends selling, according to Bloomberg data
Bank of Baroda has accepted an offer from Bank Dhofar to acquire its Oman operations, marking a significant move in the bank’s strategic restructuring. While the deal awaits approval from regulatory authorities, the official agreement and transaction completion date are yet to be determined. The financial details of the sale also remain undisclosed at this time, ndtvprofit.com reported.
This acquisition is not classified as a related-party transaction, ensuring transparency in the process. Prior to this, Bank of Baroda raised ₹5,000 crore by issuing 10-year infrastructure bonds on September 9, 2024, targeting domestic investors. The bonds, carrying a coupon rate of 7.26%, followed a similar issuance on August 26, 2024, where the bank raised the same amount at a slightly higher coupon rate of 7.30%. The lower coupon rate in the latest offering reflects a tighter pricing strategy.
The consensus 12-month price target suggests an 18.9% potential upside for the stock, reflecting optimism around the bank’s ongoing strategic initiatives
Bank of Baroda has experienced a strong compound annual growth rate (CAGR) of 17% in loan growth between fiscal years 2022 and 2024, driven by the efficient use of its excess liquidity. This growth boosted its credit-deposit ratio by 600 basis points, reaching 80.3%. However, analysts expect the loan growth rate to moderate, projecting an 11.5% CAGR from fiscal 2024 to 2027, with a focus on retail, agriculture, and micro, small, and medium enterprises (MSMEs).
Despite these positive growth indicators, Bank of Baroda’s stock performance has faced challenges. Shares closed 1.57% lower at ₹245.05, underperforming the BSE Sensex, which saw a 2.10% drop. Over the past 12 months, the bank’s stock has declined by 12.23% and is down 5.79% year-to-date. The stock’s relative strength index (RSI) stands at 74.78, signaling potential overbought conditions.
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