Shares of Bank of Baroda surged by 4 percent to Rs 255 per share on October 4, after the public sector lender released its business update for the second quarter of FY25.
During the July-September quarter, Bank of Baroda posted a significant increase in its global advances, which grew by 11.6 percent year-on-year (YoY) to Rs 11.43 lakh crore.
On the deposits front, global deposits registered a robust 9.11 percent YoY growth, reaching Rs 13.63 lakh crore, while domestic deposits grew 7.4 percent YoY to Rs 11.50 lakh crore.
The bank’s retail segment of domestic deposits also experienced notable growth, increasing by 19.9 percent to Rs 2.32 lakh crore, compared to Rs 1.93 lakh crore in the corresponding period last year.
This growth in both advances and deposits underscores the bank’s strong position in the market and its ability to capture a larger share of the lending and deposit landscape.
Citi analysts reaffirmed their positive outlook on the stock, issuing a 'buy' recommendation with a target price of Rs 300 per share. This target suggests a potential upside of 17 percnet from the current levels.
According to Citi, the growth in global advances exceeded their estimates, while the sequential deposit growth was also solid, contributing to the positive sentiment.