Bank of Baroda (BoB) has a strong underlying banking

1. Strong loan growth: Global advances are growing faster than deposits, with retail loans particularly strong. Management has subsequently raised its FY27 growth forecast to around 7–7.2% for the economy, which supports the broader banking outlook. 2. Funding advantage: BoB recently mobilised around $8 billion through FCNR(B) deposits, substantially above its initial $4–5 billion target. This gives the bank additional funding flexibility. 3. Asset quality is improving: GNPA and NNPA are substantially lower YoY, while credit cost has fallen. This is important because continued asset-quality improvement can support earnings even if NIMs remain under pressure. 4. Digital transformation: BoB is increasing investment in technology and cybersecurity and has launched bob World 2.0 with voice-banking capabilities. The bank is also using AI in customer service and credit/collections. 🔴 Risks The biggest near-term issue is NIM pressure. Global NIM declined to 2.77% from 2.91% YoY, so deposit/loan repricing will remain important.