About Bank of Baroda

NSE: BANKBARODA

Founded in 1908 by Maharaja Sayajirao Gaekwad III in Vadodara, Gujarat, Bank of Baroda (BoB) has grown into one of India’s largest public sector banks, serving over 150 million customers. Nationalized in 1969, BoB expanded significantly, including a major merger in 2019 with Dena Bank and Vijaya Bank, which strengthened its capital base and footprint.

(BoB) operates across four key segments: Retail Banking, Corporate Banking, Treasury Operations, and Priority Sector. Retail Banking, the fastest-growing segment, caters to individual customers, offering personal loans, home loans, deposits, and digital services. Corporate Banking focuses on businesses and corporations, providing working capital loans, trade finance, and project financing. Treasury Operations manages investments in government securities, foreign exchange, and money markets. The Priority Sector segment caters to agriculture and MSMEs. As of FY24, BoB's revenue mix is balanced across these segments, with Retail Banking contributing 37.5%, Corporate Banking 33.5%, Treasury Operations 22%, and International Banking and others 7.1%.

With over 8,200 branches and 11,000 ATMs in India and around 100 branches across 17 countries (including the U.K., UAE, U.S., and Africa), BoB has a  global presence. The bank offers diverse products, including retail loans, savings accounts, NRI services, investment solutions, and digital banking via its Baroda Connect platform and mobile app. . The 'bob World' mobile app has 30 million active customers, demonstrating its successful adoption of digital banking channels

BoB has successfully increased its CASA ratio to over 40%.

This focus on low-cost deposits is crucial for improving the bank's cost of funds and ultimately enhancing its Net Interest Margin (NIM). The sources do not explicitly mention specific initiatives undertaken to grow CASA, but they do highlight its significance in BoB's funding strategy.

Increase in BoB’s retail advances share from 18% in FY20 to 29% in FY26E

The bank has prioritized building a retail loan portfolio, growing at 21% in FY24, outpacing overall loan growth of 8.1%. This strategic focus has led to a more balanced loan mix, with retail and agriculture segments showing growth while consciously moderating growth in the unsecured personal loan segment.

Geographical presence

34.84% Rural Focus: BoB's Commitment to Financial Inclusion

BoB maintains a  domestic presence with a network of over 8,200 branches across India. The bank demonstrates a commitment to financial inclusion with 34.84% of its branches located in rural areas, serving a significant portion of the underserved population. While prioritizing rural reach, BoB also ensures a balanced presence across metro, urban, and semi-urban locations, catering to diverse customer segments.

Category	Metro	Urban	Semi Urban	Rural	Total
FY23 Number of Branches	1,787	1,471	2,075	2,867	8,200
FY23 (% Share)	21.79	17.94	25.31	34.96	100
FY24 Number of Branches	1,789	1,488	2,094	2,872	8,243
FY24 (% Share)	21.7	18.05	25.41	34.84	100

International Presence

Furthermore, BoB is strategically leveraging opportunities in India's GIFT City (Gujarat). It has established an International Banking Unit and a wholesale branch within this special economic zone, taking advantage of the favorable business environment and tax incentives to drive international business growth. The bank has invested in advanced infrastructure, including a state-of-the-art dealing room for its global treasury operations in GIFT City, demonstrating its commitment to expanding its international presence and capabilities.

Exhibit: Bank’s International demographics hubs