Bank of Baroda Board to Weigh QIP Fundraising on February 13, 2025

Public sector lender Bank of Baroda (BoB) has announced that its Board of Directors will meet on February 13, 2025, to discuss a capital raising plan through various modes, including a Qualified Institutional Placement (QIP).

In an exchange filing, the bank stated that the board will consider raising common equity capital in suitable tranches up to March 31, 2026, and beyond, if deemed necessary. The proposed capital raising will be subject to applicable statutory and regulatory approvals.

Stock Performance

On February 4, 2025, Bank of Baroda (BoB) share price traded 2.74% higher at ₹213.55 as of 10:09 AM (IST). The stock touched a 52-week high of ₹298.45 on June 3, 2024, while hitting a 52-week low of ₹206.65 on the same day.

According to BSE data, the total traded volume stood at 1.25 lakh shares, with a turnover of ₹2.66 crore. At the current price, BoB shares are trading at a price-to-earnings (P/E) ratio of 5.69x, based on its trailing 12-month earnings per share (EPS) of ₹37.55, and a price-to-book (P/B) ratio of 0.87, as per exchange data.

Q3 FY25 Overview

Bank of Baroda (BoB) reported an increase in interest income to ₹30,908 crore for the October-December 2024 quarter, compared to ₹28,605 crore in the same period last year. The bank’s operating profit also rose to ₹7,664 crore, up from ₹7,015 crore in Q3 FY25.

On the asset quality front, BoB’s gross non-performing assets (NPA) ratio declined marginally to 2.43%, compared to 3.08% in the corresponding quarter of the previous fiscal. Meanwhile, net NPAs fell to 0.59%, down from 0.7% at the end of Q3 FY24.

The bank’s overall provisions (excluding tax) increased significantly to ₹1,082 crore in Q3 FY25, up from ₹666 crore in the year-ago period. However, its Capital Adequacy Ratio declined to 14.72% in the reporting quarter, compared to 15.96% in the previous financial year.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.