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Why is the Bank of Baroda Share Price Rising?

Posted by : sachet | Wed Dec 03 2025

Why is the Bank of Baroda Share Price Rising?

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The recent Bank of Baroda share price is ₹296.40, up 2.31% from the previous day. The Bank of Baroda’s open interest shows a strong market position despite recent price softness. This development comes as the stock trades near its 52-week high, with mixed volume and price signals suggesting a positive market backdrop in this evolving era. The share prices of banks have also been surging. The Nifty PSU Bank Index is up 30% so far, with shares of Punjab National Bank, Central Bank of India, and other Indian banks up 58%, 53%, and 41%, respectively.  

The short-term performance of Bank of Baroda stocks is expected to be higher. Over one month, Bank of Baroda posted a 1.80%, slightly ahead of the Sensex’s 2.04% rise. However, over six months, the Bank of Baroda has had a 15.97% gain in the overall period. The company has reflected long-term fundamentals, with a 22.7% CAGR in operating profits and consistent positive results over the last five quarters, which are likely to increase Bank of Baroda’s share price.      

Key Reasons for the Rise in the Bank of Baroda Share Price Rise 

There are several reasons for the rise in Bank of Baroda shares, including strong growth in business volume, strong quarterly results, RBI Measures, sustainability initiatives, and a positive analyst outlook 

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  • Strong growth in business volume: In its most recent quarter (Q2 FY26), Bank of Baoda reported global advances up 11.9% YoY and global deposits up ~9.3% YoY. Bank of Baroda reported total income of ₹24,17,464 crore as of March 2024, up from ₹21,73,236 crore in the previous year.
  • Strong Quarterly Results: In the recent Q2 report, BOB delivered more substantial net interest income (NII) and improved asset quality, boosting investor confidence. Provisions were significantly lower YoY, which reduces the risk burden, and such results often lead to a rise in the Bank of Baroda share price.
  • RBI Measures: The Reserve Bank of India (RBI) announced measures to manage liquidity in the financial system, including conducting open market operations (OMO) to purchase government securities worth ₹600 billion (bn) in three phases of ₹200 bn each.
  • Sustainability Initiatives: Bank of Baroda remains committed to sustainable development. Through its Green Financing initiatives, then it supports renewable energy projects and eco-friendly ventures. The bank has also adopted several environmental, social, and governance (ESG) practices to align with global standards.  
  • Positive Analysts Outlook: According to some analysts, the bank’s financial performance in FY24 demonstrates consistent growth, driven by substantial revenue, improved NPA management, and expansion across segments. With sustainability initiatives, the Green Finance Framework is committed to sustainable development.   

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Bank of Baroda: An Overview

Bank of Baroda is an Indian Public sector bank headquartered in Vadodara, Gujarat. It is the second-largest public sector bank in India after the State Bank of India. Based on 2025 data, it is ranked 455 on the Forbes Global 2000 list. Bank of Baroda announced in May 2019 that it would either close or rationalise 800-900 branches to increase operational efficiency and reduce duplication post-merger. The regional and zonal offices of the merged companies would be closed. 

Bank of Baroda operates across a variety of financial services, providing a comprehensive banking and non-banking solutions to individuals, corporates, and institutions. 

Bank of Baroda adheres to the highest standards of corporate governance, ensuring transparency and accountability in all its operations. The bank’s highest risk management framework and focus on customer-centric services. The total operating income of the Bank of Baroda is approximately ₹2,488,961 lakh, the net income is ₹1,778,878 lakh, and the total assets are ₹158,579,709 lakh.  

Bank of Baroda: Performance Analysis 

As of September 2025, Bank of Baroda’s market capitalisation stood at ₹1,49,866.08 crores. Shareholding as of September 25 shows promoter holding 64%, FIIs 8.7%, DIIs 19%, and public 8.3%. The bank posted a net profit of ₹17,789 crore in FY24, a 2.61% increase from ₹14,110 crore in FY23, reflecting a strong financial performance and operational resilience. Bank of Baroda reported a dividend income of ₹238 crores for FY24, marking a 17.1% decline compared to ₹287 crores in FY23. Despite this, the bank shows a strong performance in other revenue-generating segments such as fee-based income and trading gains. 

Bank of Baroda: Share Price Target

The Bank of Baroda share price target is ₹303.75. The consensus estimate represents an upside of 3.32% from the last price of 294. Based on 34 analysts, 82.35% of analysts recommend a ‘Buy’ rating for Bank of Baroda, with an average target price of ₹312.9116. According to Wall Street analysts, the average 1-year share price target is for Bank of Baroda is ₹311 to ₹316, with a low forecast of ₹302.70 and a high forecast of ₹320.45. The price is below an essential level of ₹2,021 on the charts, and if it remains below this level, the stock might decline in the short term. The Bank of Baroda share price target for 2026 is ₹310.90 with the minimum estimate of ₹302.10 and a maximum estimate of ₹320.00. According to projections from 44 analysts, the average 12-month price target for Bank of Baroda is ₹315.80, with a high estimate of ₹312.80 and a low estimate of  ₹300.10. 

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Bank of Baroda: Future Predictions By Analysts

According to some analysts and statistical models, if the current market and earnings trend persist, the projected average share price by mid-year could be around ₹320.10. In contrast, the average share price by year-end could reach approximately ₹340.10. These figures are indicative and may shift with changes in interest rates, product sales, or equity-market sentiment. Bank of Baroda is forecast to grow its earnings and revenue by 9.1% for the next three years. The projected annual earnings growth rate is approximately 7.5%, with a forecast ROE of 13.3% over the next 3 years. View 17 reports from 8 analysts offering long-term price targets for Bank of Baroda. 

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Is Bank of Baroda a Good Stock to Buy? 

The Bank of Baroda (BOB) is a good stock, or not, depends on the market conditions and other factors related to it. There are many latest developments related to the Bank of Baroda, such as 

  • Mergers and acquisitions: The 2019 merger with Vijaya Bank and Dena Bank has been a significant milestone on the bank’s journey. This merger resulted in increased operational efficiency and expanded BoB’s footprint in India. 
  • Sustainability initiatives: Bank of Baroda remains committed to sustainable development. Through its Green Financing initiative, it supports renewable energy projects and eco-friendly ventures. The bank has also adopted several environmental, social, and governance (ESG) practices. 
  • International expansion: As of March 2024, the Bank of Baroda has expanded its global presence to 91 overseas branches and offices across 17 countries. This demonstrates the bank’s commitment to serving the banking needs of Indian experts. 
  • Subsidiary Growth: Bank of Baroda continues to strengthen its subsidiary operations, including Baroda BNP Paribas Asset Management, BarodaSun Technologies, and Nainital Bank. These subsidiaries contribute significantly to the bank’s diversified business segments, including asset management and digital solutions.      

Bank of Baroda: Analysts’ Rating

  • The average 12-month price target is ₹320.00, and the consensus rating is Hold (mix of Buy, Hold, & Sell). 
  • The analyst’s target range is between a high of ₹340.00 and a low of ₹330.00. 
  • According to some analysts, some concerns remain with a ‘Reduce’ call of ₹310.20. 
  • The analyst’s sentiment is mixed; there have been recent bullish calls (ICICI, JM), but also cautious ones (Motilal Oswal, Nuvama). 

What is the Right Time to Buy Bank of Baroda’s Shares?

According to analysts, Bank of Baroda’s share price is determined by market factors. The share price has decreased due to internal company factors, as discussed above. Therefore, investors must review all relevant factors before investing in Bank of Baroda. There are some factors to consider before investing in Bank of Baroda company shares.

  • Strong Fundamentals: Investors should review Bank of Baroda’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it.
  • Financing Partnerships: Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.
  • Growth in the Technical Sector: The company is well-positioned in the electronic demat sector to deliver benefits to Bank of Baroda. This dominant sector increases demand and prices for Bank of Baroda.
  • Highly Volatile: Prices are highly volatile, leading to significant price changes that have a substantial impact on the Bank of Baroda Company’s stock price. Investors must review the market structure before investing in Bank of Baroda Company shares.

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Conclusion

Bank of Baroda adheres to the highest standards of corporate governance, ensuring transparency and accountability in all its operations. The bank’s robust risk management framework and customer-centric focus have earned it several transactions. Additionally, the bank is a leader in promoting financial literacy and inclusion through various community development programs, particularly in rural India. As of September 2025, Bank of Baroda’s market capitalisation stood at ₹1,49,866.08 crores. Shareholding as of September 25 shows promoter holding 64%, FIIs 8.7%, DIIs 19%, and public 8.3%. The bank posted a net profit of ₹17,789 crore in FY24, a 2.61% increase from ₹14,110 crore in FY23, reflecting a strong financial performance and operational resilience. 

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FAQs

What are the key reasons for investing in the Bank of Baroda?

    Ans. There are several reasons for strong growth in business volume: strong quarterly results, RBI Measures, sustainability initiatives, and a positive analyst outlook. In the recent Q2 report, BOB delivered more substantial net interest income (NII) and improved asset quality, boosting investor confidence. Provisions were significantly lower YoY, which reduces the risk burden, and such results often lead to a rise in the Bank of Baroda share price.

    What are the factors that affect the Bank of Baroda share price?

    Ans.  Investors should review Bank of Baroda’s fundamentals before investing. If a company has strong fundamentals, high profitability, and effective management, then investors should consider investing in it. Financing partnerships bridge the gap between customers and financial institutions, facilitating the distribution of a wide range of products and generating positive sales revenue for many consumers.   

    What is the Bank of Baroda share price target?

    Ans. The Bank of Baroda share price target is ₹303.75. The consensus estimate represents an upside of 3.32% from the last price of 294. Based on 34 analysts, 82.35% of analysts recommend a ‘Buy’ rating for Bank of Baroda, with an average target price of ₹312.9116. According to Wall Street analysts, the average 1-year share price target is for Bank of Baroda is ₹311 to ₹316, with a low forecast of ₹302.70 and a high forecast of ₹320.45.

    Why investors should invest in the Bank of Baroda share?

    Ans. The 2019 merger with Vijaya Bank and Dena Bank has been a significant milestone on the bank’s journey. This merger resulted in increased operational efficiency and expanded BoB’s footprint in India.  Bank of Baroda remains committed to sustainable development. Through its Green Financing initiative, it supports renewable energy projects and eco-friendly ventures. The bank has also adopted several environmental, social, and governance (ESG) practices. 

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