As part of our Wealth Creator Series , today we look at Bank of Baroda. This is one of the 39 stocks that were short-listed and passed through our stringent stock screen filters.
By virtue of operating and capital leverage and strong recoveries, Bank of Baroda has been able to improve its RoE from an average of around 14 per cent in FY05-09 to 20 per cent plus in FY09-11. It expects a strong recovery and fee-based income with a growth of 20-21 per cent next year. Concern: BoB's rating, along with its New Zealand subsidiary, has been cut to negative by Fitch. This could make overseas borrowings costlier.
To read about how we arrived at the list click here. Get the list of stocks which made to the Wealth Creator List.
