Bank of Baroda (BoB) on Monday became the second public sector bank (PSB) after State Bank of India (SBI) to hit a market capitalization of over ₹1 lakh crore. BoB’s market capitalization rose to ₹1.004 lakh crore on the BSE, crossing the ₹1 lakh crore mark for the first time. The bank’s shares closed at ₹102.65 apiece on the BSE, up 2.55% from the previous day’s close.
BoB’s market capitalization surge comes on the back of strong financial performance. The bank reported a net profit of ₹2,548 crore for the quarter ended March 2023, up 23% from the same period last year. The bank’s net interest income (NII) grew by 17% to ₹10,330 crore, while its gross non-performing assets (GNPAs) ratio stood at 3.48%, down from 3.69% a year ago.
BoB’s market capitalization milestone is a positive sign for the PSB sector, which has been struggling in recent years. The sector has been hit by high levels of bad loans and low profitability. However, there are signs that the sector is starting to turn around. In the first quarter of 2023, PSBs reported a combined net profit of ₹12,032 crore, up 22% from the same period last year. The sector’s NII also grew by 18% to ₹36,973 crore.
Improvement In the PSB sector is being driven by a number of factors, including government reforms, economic growth, and rising interest rates. The government has taken a number of steps to improve the health of the PSB sector, including recapitalization, asset restructuring, and mergers. The economic growth is also helping to boost the PSBs’ profitability. With interest rates rising, the PSBs are expected to see further improvement in their profitability in the coming quarters.
