Bank of Baroda shares hit record high post-Q2 result—Check what brokerages recommend

Bank of Baroda Share Price: Shares of Bank of Baroda surged as much as 5 per cent to hit the record high of Rs 292.70 apiece in the early hours of trade on Monday. As of 1:30 pm, the stock was trading at Rs 290.65, up by 4.44 per cent from the previous close. The rally followed after the bank reported its financial results for the quarter and half-year ended September 2025.

Brokerages' views on Bank of Baroda

Nomura on Bank of Baroda

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Nomura has upgraded its rating on Bank of Baroda (BoB) from neutral to 'buy', and has raised the target price from Rs 240 to Rs 320. The upgrade follows Bank of Baroda's strong growth quarterly results and benign asset quality that beat the brokerage's estimates.

The brokerage noted the bank's strong performance across key parameters such as net interest margins (NIMs), credit costs, and operating expenses. According to Nomura, the bank picked up momentum in both loan and deposit growth, while slippages (new bad loans) remain under control.

The brokerage also highlighted that the stock is inexpensively valued at 0.9x its estimated book value per share for September 2027 (Sep-27F BVPS). Nomura expects Bank of Baroda to deliver an average return on assets (ROA) of 1 per cent and return on equity (ROE) of 13.7 per cent over FY26–FY28.

Jefferies on Bank of Baroda

Jefferies has maintained its 'hold' rating on Bank of Baroda (BoB) while raising the target price from Rs 255 to Rs 295.

Morgan Stanley on Bank of Baroda

Morgan Stanley has maintained its 'underweight' rating on Bank of Baroda (BoB) but has raised the target price from Rs 235 to Rs 255.

Citi on Bank of Baroda

Citi has maintained its 'buy' rating on Bank of Baroda (BoB) and raised its target price from Rs 310 to Rs 350. The brokerage noted that the bank reported a Q2 FY25 profit after tax (PAT) of Rs 48 billion, delivering a return on assets (RoA) of 1.1 per cent, which was 8 per cent above Citi’s estimates.

The bank's net interest income (NII) showed a 5 per cent year-on-year (YoY) growth, aided by interest earned on an income tax refund, which helped expand net interest margins (NIMs) by 5 basis points (bps) quarter-on-quarter (QoQ) to 2.96 per cent.

Additionally, flat operating expenses and a low credit cost of 40 bps underpinned the PAT beat. The bank also took a prudent step by creating Rs 4 billion in floating provisions in preparation for the future Expected Credit Loss (ECL) framework.

Loan growth remained robust, with an 8.5 per cent QoQ rise in corporate advances and continued strength across retail, agriculture, and MSME (RAM) segments, leading to overall 6 per cent sequential loan growth.

Asset quality remained stable, helped by the absence of overseas slippages and improvement in MSME and retail portfolios, keeping slippages contained at 1 per cent.

Citi expects NIMs to moderate slightly to around 2.85 per cent by FY26, but with lower credit cost estimates, it sees BoB well-positioned to sustain strong profitability and growth momentum.

HSBC on Bank of Baroda

HSBC has maintained its 'buy' rating on Bank of Baroda (BoB) while raising the target price from Rs 280 to Rs 340.

In its Q2 FY26 review, the brokerage highlighted that broad-based sequential loan growth, expansion in net interest margins (NIMs), and strong asset quality were the key positives.

HSBC expects BoB’s operating performance to remain healthy in the coming quarters, with potential upside from continued improvements in asset quality, which could further strengthen profitability. Additionally, the brokerage has raised its FY26–FY28 earnings per share (EPS) estimates by 5 to 7 per cent.

CLSA on Bank of Baroda

CLSA has maintained its 'accumulate' rating on Bank of Baroda (BoB) with a target price of Rs 325.

The bank reported a 7 per cent beat in profit before tax (PBT), driven by a 4 per cent rise in net interest income (NII) and a 24 per cent reduction in provisions compared to expectations.

CLSA noted it was a good quarter overall, supported by stable adjusted net interest margins (NIMs)—which held steady instead of the expected 8 to 9 bps decline—and better-than-expected asset quality metrics as well.

Both loan and deposit growth remained healthy at 10 to 12 per cent YoY, in line with the trend in prior quarters. The bank’s credit cost of 40 bps and slippage ratio of 1 per cent were lower than both last year’s levels and the brokerage's estimates.

However, fee income remained flat YoY despite 12 per cent loan growth, and the CASA (current and savings account) ratio moderated 90 basis points QoQ.