In contrast, on October 10, the Reserve Bank of India (RBI) imposed a temporary suspension on the bank’s ability to onboard new customers via its digital banking app, BoB World, citing concerns with the onboarding process. In response, HSBC downgraded Bank of Baroda’s stock from “buy” to “hold,” setting a target price of Rs 220.
Notably, Bank of Baroda reported a substantial 17 percent year-on-year (YoY) growth in total advances, reaching Rs 10.3 lakh crore, with domestic advances seeing a commendable 16.6 percent YoY increase. The international book also witnessed an impressive 21 percent YoY growth, up by 6.4 percent quarter-on-quarter.
The bank’s surge in loan growth was predominantly propelled by retail loans, as domestic retail loans surged by 22.5 percent YoY and 5.4 percent quarter-on-quarter, according to the Q2 provisional business update.
Furthermore, total deposits saw a substantial 14.6 percent YoY surge, amounting to Rs 12.5 lakh crore, with domestic deposits exhibiting a commendable 12 percent YoY increase. In contrast, international deposits showcased remarkable growth, surging by 32 percent YoY.
The Domestic Current Account Savings Account (CASA) deposits grew by 4.4 percent YoY, contributing to the bank’s overall growth story.