Buy Bank of Baroda; target of Rs 200: Geojit Financial Services

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26 Aug, 2025 12:21

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Geojit Financial Services' research report on Bank of Baroda

Total loan book growth remained almost flat YoY as the bank decided to consolidate its balance sheet in FY17. BoB has been undergoing a business transformation, whereby it is re-aligning its loan book towards better yielding products with an optimal risk profile. While international loan book (28% of loan book) contracted by 12% YoY, domestic loans grew 5% YoY mainly driven by 14% YoY growth in retail loans.

Outlook

Further, gradual improvement in asset quality will lead to better profitability. As a result, we expect the RoA and RoE to improve to 0.5% and 8%, respectively by FY19E. Hence, we continue to maintain BUY rating with a revised upwards TP of Rs 200 and value the bank at P/ABV of 1.4x for FY19E.

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