Bank of Baroda Sees Steady Growth in Business Amidst Global Economic Uncertainty

Mumbai (Reuters) - Bank of Baroda, a private sector lender, reported robust growth in its businesses for the quarter ended December 2024, bucking the trend of sluggish economic recovery globally.

According to the bank's provisional business updates released on Friday, its global business grew by 11.74% year-on-year (YoY) to Rs 25.64 lakh crore, driven by strong advances and deposits growth. Global advances rose by 11.65% YoY to Rs 11.72 lakh crore, while global deposits climbed 11.82% YoY to Rs 13.92 lakh crore.

The lender's domestic business also showed signs of resilience, with advances rising by 11.76% to Rs 9.63 lakh crore in Q3 against Rs 8.62 lakh crore in the same period last year. Domestic deposits climbed by 9.23% to Rs 11.65 lakh crore in Q3.

Despite the growth, Bank of Baroda's stock prices were seen trading at a 0.17% gain on Friday, closing at Rs 241.60 against the previous close of Rs 241.20. The market capitalization of the bank rose to Rs 1.24 lakh crore on BSE.

The banking stock has shown resilience in recent years, with gains of 4% over the past year and 29% over the past two years. However, it currently lags behind its moving averages, indicating that price correction may be on cards.

Overall, Bank of Baroda's provisional business updates provide cautious optimism about the lender's growth prospects despite global economic uncertainties.