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Bank of Baroda Dividend Rises as Valuation Remains Below Historical Average
Bank of Baroda is an Indian bank that made a record profit in FY26.
It recommended paying shareholders ₹8.50 for each share they own.
That payment is much higher than the ₹2.85 per share it paid in FY22.
The bank also reported fewer troubled loans than before.
It has money set aside to help cover loans that might not be repaid.
Its capital ratio was above the regulatory level cited in the article.
The article says the bank’s share price was low compared with some past and industry valuation measures.
Still, future dividends depend on profits, capital needs, and business growth.
The article presents its analysis as educational, not as an investment recommendation.
Bank of Baroda recommended a FY26 dividend of ₹8.50 per share, equal to a 3.7% yield at the article’s cited share price of ₹231.
Its dividend per share rose from ₹2.85 in FY22 to ₹8.50 in FY26, while net profit grew about 2.75 times over the same period.
FY26 net profit reached ₹20,021 crore, while gross and net NPAs stood at 1.89% and 0.45%, respectively.
The bank reported a FY26 capital adequacy ratio of 15.82% and a provision coverage ratio of 93.94%.
The article says the stock traded at 0.71 times book value, below its 10-year median of 0.8 times and the public-sector-bank sector multiple of 0.9 times.
- Who
- Bank of Baroda
- What
- The article reviews the bank’s FY26 results, dividend record, asset quality, capital position, and valuation.
- Where
- India
- When
- The figures discussed are primarily for FY26; the cited share price and market capitalisation are as of October 1, 2026.
- Why
- The article assesses whether the bank’s earnings, balance sheet, and valuation support continued dividends and possible share-price re-rating.
Key facts
- FY26 recommended dividend
- ₹8.50 per share
- Dividend yield cited
- 3.7% at a share price of ₹231.0
- FY26 net profit
- ₹20,021 crore
- FY26 gross and net NPAs
- 1.89% and 0.45%, respectively
- FY26 capital adequacy ratio
- 15.82%; it rose to 16.30% in Q1 FY27
- FY26 price-to-book multiple
- 0.71 times, compared with a 10-year median of 0.8 times
- FY26 dividend payout ratio
- 22.0%
Sources
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