Top PSU Bank Stock Can Rally Up To 25.22% In 2024, Motilal Oswal Recommends Buy

Motilal Oswal has assigned buy call to public sector lender Bank of Baroda with target price of Rs 280 apiece. Last trading price of Bank of Baroda share on BSE is Rs 223.60 apiece. If you buy Bank of Baroda shares at last trading price of Rs 223.60 per share, you can fetch likely return of 25.22% in 2024.

According to the analyst, amid the healthy CET-1 ratio of ~12%, the PSU bank looks to be effectively capitalized for incremental growth prospects, expected to be pushed by retail loans. Bank of Baroda shares offered multibagger returns in last 2-years only as shares jumped 180%.

Also, Bank of Baroda's corporate book registered a strong recovery and expected to sustain momentum leading to a robust loan growth, added the analyst.

Bank of Baroda Stock Performance & Return: The stock's 52-week high price is Rs 229.55 per share and 52-week low price is Rs 146.50 per share, respectively. The lender has a market capitalisation of Rs 1,15, 631.66 crore. Bank of Baroda shares fell 0.42% in last 1-week, soared 5.40% when benchmark Sensex gained 1.84%, jumped 27% in last 1-year, and offered return of 180% in last 2-year only. In last 3-years, Bank of Baroda stock jumped 279%.

Bank Of Baroda Quarterly Results: The PSU bank declared a growth of 28.4% in its net profit for the quarter ended September 30, 2023 to Rs 4253 crore as compared to the corresponding quarter of last year. Its total income from operations soared 39% on year to Rs 32, 033 crore. Bank of Baroda announced its net interest income rallied by 6.5% YoY to Rs 10,831 crore. NII can be explained at the sum of money earned from interest income barring the amount spent on interest payments. The bank declared its operating profit for the quarter up by 33% on year to Rs 8020 crore. It reported its cost to income ratio down to 46.54% from 49.74% a year ago.

About Bank of Baroda: It is India's leading public sector bank with a strong domestic presence supported by self- service channels. The Bank has a significant international presence with a network of 100 branches/offices of subsidiaries, spanning 20 countries. The Bank has wholly owned subsidiaries including BOB Financial Solutions Limited (erstwhile BOB Cards Ltd.), BOB Capital Markets and Baroda Asset Management India Ltd. Bank of Baroda also has joint ventures for life insurance viz. IndiaFirst Life Insurance Company Limited and India Infradebt Ltd., engaged in infrastructure financing. The Bank owns 98.57% in The Nainital Bank.

Disclaimer: The stock has been picked from the brokerage report of Motilal Oswal. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.