BoB hits new high

Public sector lender Bank of Baroda saw its share price surge 3% today, touching a fresh 52-week high of Rs.271.85, in response to a strong business performance in Q2 FY26.

Business Highlights: Q2 FY26 (Jul–Sep)

• Global advances reached Rs.12.79 trillion, up 11.9% year-on-year (YoY), and 5.9%  (QoQ).
• Global deposits stood at Rs.15.00 trillion, growing 9.3% YoY, 4.5% QoQ.
• Deposits rose 9.7% YoY to Rs.12.72 trillion, while domestic advances rose 11.5% YoY to Rs.10.47 trillion.
• Standout segment: Retail advances grew 17.5% YoY to Rs.2.73 trillion—boosting the bank’s low-cost, granular book.

The stock reaction reflects investor confidence that BoB can convert strong business momentum into earnings. With valuation still relatively benign among PSU banks, the market is discounting further upside.

While growth is encouraging, margin pressure is a watchpoint — especially if the cost of deposits continues to rise faster than yields on advances.

Similarly, maintaining asset quality will be crucial. BoB’s recent improvements in controlling incremental slippages have helped, but executing on this front consistently is key to sustaining investor confidence.