© Reuters.
Bank of Baroda, a prominent player in the Banks industry according to InvestingPro Tips, has announced a revision in its fixed deposit (FD) rates effective from Monday. The bank has increased the interest rates on Domestic Retail Term Deposits, including NRO and NRE Term Deposits. The announcement was made by Ravindra Singh Negi, Chief General Manager at Bank of Baroda. The revised rates offer up to 7.40% per annum for general citizens and up to 7.90% per annum for senior citizens during a 2 to 3-year investment tenor.
The bank has increased the interest rates by up to 50 basis points across various tenors up to 3 years for deposits below Rs 2 crore. This move ensures higher assured returns for customers. Additional return on investment (ROI) is provided for senior citizens and non-callable deposits, with the latter earning additional interest.
Following previous rate hikes in May and March 2023, the bank has also increased bulk deposit interest rates for deposits between Rs 2 crore and Rs 10 crore. For term deposits above 5 years and up to 10 years, the bank offers additional ROI.
As part of the revision, Bank of Baroda’s FD rates now range from 3% to 7.25% for the general public and up to 7.75% for senior citizens based on the deposit’s maturity period. The bank’s special scheme, Baroda Tiranga Plus Deposit Scheme, which has a tenure of 399 days, now offers a reduced interest rate of 7.15%. The Non-Callable Baroda Advantage Fixed Deposit scheme, which prohibits premature withdrawal, provides interest rates between 6.90% and 7.40% for general citizens and between 7.40% and 7.90% for senior citizens.
The Tiranga Plus Deposit Scheme’s rates have been realigned, offering seniors a rate of 7.80% per annum. Customers can open new FDs at the bank’s branches or via the bob World Mobile app/ Net Banking.
According to InvestingPro’s real-time metrics, Bank of Baroda’s market cap stands at 910.36M USD, and it has a P/E ratio of 245.9. Despite a 15.73% negative return over the past year, the bank’s stock is trading at 84.27% of its 52-week high, indicating a potential recovery. InvestingPro’s fair value for the bank is 18.01 USD, above the previous close price of 15 USD, suggesting that the stock may be undervalued.
InvestingPro Tips also highlight that Bank of Baroda has been experiencing accelerating revenue growth and consistently increasing earnings per share, indicating a strong financial performance. However, the bank is also quickly burning through cash and has low earnings quality, with free cash flow trailing net income. These factors could impact future dividend payouts. For more insights like these, consider checking out InvestingPro’s additional tips here.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
