Bank of Baroda (BoB) is an Indian state-owned International banking and financial services company headquartered in Vadodara in Gujarat, India. It was established by the Maharaja of Baroda, Maharaja Sayajirao Gaekwad III on 20 July 1908. The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969, by the Government of India and has been designated as a profit-making public sector undertaking (PSU).
The Bank has 91 overseas branches/offices across 17 countries comprising of 39 overseas branches/offices (including 1 International Banking Unit in GIFT City, Gandhinagar, Gujarat, India and 9 EBSUs in UAE), 52 branches of the Bank’s 7 overseas subsidiaries. Additionally, the Bank has one Joint Venture viz. India International Bank (Malaysia) Bhd. in Malaysia and one associate bank viz. Indo Zambia Bank Ltd. in Zambia with 32 branches. The Bank has presence in the world’s major financial centers of New York, London, Dubai, Singapore and Australia. Furthermore, the Bank has a wholesale branch in GIFT City (SEZ), Gujarat.
Awards and Recognition in FY2023-24:
- Bank of Baroda has been honored with the Best Use of Experiential Marketing and Best Performance Marketing Campaign of the Year award at the ASSOCHAM Branding & Marketing Summit cum Excellence Awards.
- Bank of Baroda has been recognized as the ET NOW Best BFSI Brands for 2024 at the 7th edition of The ET Now Best BFSI Brands Conclave.
- Bank of Baroda emerges victorious at the ET BRANDEQUITY.com’s ET Trendies Award for Cause-based Marketing for the Bank’s # PehchaanCon Influencer Campaign.
There are various other awards that the Bank has received in FY2023-24.
Products and Services:
The bank provides a wide range of banking products and services, including:
Personal: Bank of Baroda offers a variety of accounts such as Savings accounts, Current accounts, Fixed deposits, etc. to help customers achieve their financial objectives. Additionally, it provides a diverse range of loan products like Home Loans, Vehicle Loans, Education Loans, etc. to cater to different needs.
Business: In the business segment, the bank offers the following products and services:
MSME: Bank of Baroda provides current accounts facility, various loans, advance, and value-added services to support MSME customers.
Corporate Banking & Services:With an integrated approach, the bank offers comprehensive solutions to its corporate sector clients.
Agriculture Loans & Advances:The bank offers a platform for farmers to address their issues and adopt better farming practices through the dissemination of new agricultural techniques and enhancement of existing practices.
BoB also offers International Banking, Supply chain finance, Treasury, Trade, FX & Remittances, Startup Banking, etc.
Key Financials (FY2024):
Bank of Baroda (BoB) has a vast network that serves more than 153 million customers in 17 countries. It operates through 8,243 domestic branches, 91 overseas branches, 9,426 ATMs, and 1,607 cash recyclers. As of the conclusion of the financial year 2024, the bank's Total Assets amounted to Rs 1,585,797 Cr, with Deposits reaching Rs 1,326,957 Cr and Loans and Advances standing at Rs 1,065,781 Cr.
The Bank achieved a remarkable 8.7% increase in Total Assets during the previous financial year and showed an impressive growth rate of 11.1% over a 3-year period on a CAGR basis. Furthermore, Deposits experienced a year-on-year growth of 10.2% and 11.1% growth over 3 years on a CAGR basis. Conversely, Loans and Advances demonstrated a significant year-on-year growth of 13.3% and 14.7% growth over 3 years on a CAGR basis, fueled by high deposits, a cost-effective source of funds, which represented 81.69% of the total fund sources at the end of FY2024. (Please refer the blog Sources of Funds of Banking Business)
The Bank achieved a Net Interest Income (NII) of Rs 44,722 Cr in FY2024, with a Net Profit of Rs 17,789 Cr. The NII saw an 8.1% year-on-year growth and a 15.8% increase over 3 years on a CAGR basis. Meanwhile, the Net Profit surged by 26.1% year-on-year and 177.8% over 3 years on a CAGR basis.
Moreover, the Bank's Capital Adequacy Ratio stood at 16%, surpassing the RBI's mandated percentage. Both Gross NPA and Net NPA were at a remarkably low level of 2.92% and 0.68% respectively. The Bank's Net Interest Margins were at 2.82% and the Net Profit Margin at 15.79%. Additionally, the CASA ratio was recorded at 41.33%, exceeding the industry CASA average of 40%.
Future Plan:
The Bank is focusing on expanding its presence in new markets both domestically and internationally. By targeting specific regions with high growth potential and tailoring its products and services to meet the needs of local customers, the Bank aims to attract a diverse customer base and increase its market share.
In addition, the Bank is investing in research and development to create innovative products and services that differentiate it from competitors and meet the evolving needs of customers. By staying ahead of industry trends and leveraging technology, the Bank is able to offer cutting-edge solutions that provide added value to customers and drive growth.
Streamlining processes and reducing turnaround time is another key focus for the Bank. By optimizing operations and improving efficiency, the Bank is able to provide faster and more responsive service to customers, ultimately enhancing their overall experience and satisfaction.
Prioritizing digitization is also a critical component of the Bank's strategic approach. By investing in technology and digital solutions, the Bank is able to offer convenient and secure banking services to customers, while also reducing costs and improving operational efficiency.
Overall, the Bank's strategic approach is designed to position it as a leading and innovative banking institution that delivers value to stakeholders, while upholding its core values and commitment to compliance. By focusing on expansion, innovation, efficiency, and digitization, the Bank is well-positioned for sustainable growth and success in the competitive banking industry.
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The content or analysis presented in the Blog is exclusively intended for educational purposes. It is important to note that this should not be considered as a suggestion for investing in stocks or as legal or medical advice. It is highly recommended to seek guidance from an expert before making any decision.