Bank of Baroda’s shares experienced a notable rise on April 3, 2025, following the release of its fourth-quarter business update. The bank showcased impressive growth metrics in both loans and deposits, signaling a strong market position. With a year-on-year (YoY) growth of 11.44%, the bank’s global business surged to an impressive ₹27.03 trillion, reflecting a robust customer base and thriving loan demand.

Strong Performance in Advances

The bank’s global advances jumped by 12.88% YoY, totaling ₹12.31 trillion. This uptick illustrates a clear increase in credit demand, bolstered by Bank of Baroda’s strategic lending initiatives. Notably, domestic advances outperformed expectations, climbing 13.70% YoY to ₹10.21 trillion. Additionally, domestic retail advances (excluding pool purchases) soared by an impressive 19.38% YoY, reaching ₹2.56 trillion.

Solid Growth in Deposits

On the liabilities front, Bank of Baroda reported a global deposit growth of 10.25% YoY, amounting to ₹14.72 trillion by the close of March. Domestic deposits played a crucial role in this increase, rising 9.28% YoY to ₹12.42 trillion. This consistent growth in deposits highlights the bank’s strong financial foundation and the trust investors place in its competitive interest rates.

Stock Market Reaction

The announcement of the fourth-quarter results propelled Bank of Baroda’s stock, which rose by 3% in intraday trading, peaking at ₹238.45 before closing 2.25% higher at ₹236.70 for the day. Despite the recent gains, the stock has faced challenges, experiencing a 15% decline over the past year. Nevertheless, March witnessed a remarkable recovery, with shares rallying 16% after a series of four consecutive months of losses. The stock had previously dropped 7.6% in February, 11.3% in January, 2.4% in December, and 2% in November, reflecting the market’s overall volatility.

Conclusion

Bank of Baroda’s latest business update underscores its strong financial performance, characterized by significant growth in both advances and deposits. The positive shift in its stock price indicates renewed investor confidence, driven by the bank’s solid business fundamentals. With such impressive results, Bank of Baroda is positioned well in the competitive banking landscape, making it an attractive option for investors looking for stability and growth.