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Today's prices ask more of ICICI Bank than of Bank of Baroda.
At current prices, buyers of Bank of Baroda are assuming about 11.4% return on equity against 13.8% in its own record; for ICICI Bank it is 17.0% against 17.3%. That shows which share needs more to go right — not which is cheaper. How far each trades from its estimated fair value is in the full valuations.
- Valuation method: both on excess return.
- Size: ICICI Bank is worth about 8.0 times Bank of Baroda on the stock market.
- Record: ICICI Bank has grown revenue faster: Bank of Baroda compounded at about 9% a year (FY2020–FY2026) and ICICI Bank at about 13% (FY2018–FY2026).
- What to watch: return on equity at Bank of Baroda; sustaining return on equity at ICICI Bank.
| Bank of Baroda | ICICI Bank | |
|---|---|---|
| Price | ₹274 | ₹1,584 |
| Market cap | ₹1.42L Cr | ₹11.37L Cr |
| P/E | 7.2 | 19.2 |
| P/B | 0.85 | 3.00 |
| Fair value 🔒 sign in | ₹0,000 | ₹0,000 |
| Upside 🔒 sign in | +00% | +00% |
| Valued on | Excess return | Excess return |
01Two businesses
The second-largest public-sector bank
Bank of Baroda, founded in 1908 in Vadodara (then Baroda), is one of India's largest public-sector banks and is majority-owned by the Government of India. It merged with Vijaya Bank and Dena Bank in 2019, and has a larger overseas presence than most Indian banks.
From clean-up to one of the highest-return big banks
ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market. Its group includes a life insurer (ICICI Prudential Life), a general insurer (ICICI Lombard) and a stake in the ICICI Prudential asset-management business.
02The records side by side
ICICI Bank has grown revenue faster: Bank of Baroda compounded at about 9% a year (FY2020–FY2026) and ICICI Bank at about 13% (FY2018–FY2026). By revenue, ICICI Bank is about 2.0 times the size of Bank of Baroda. Bank of Baroda kept 12.4% of revenue as net profit in FY2026; ICICI Bank kept 18.5% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Bank of Baroda · ICICI Bank.
03What each price assumes
Work backwards from each share price and you can see what buyers are taking for granted — the rate each company must sustain to justify what it costs, against what its own record supports.
04What decides each one's value
- Return on equityWhether recent returns hold through a full credit cycle.
- Credit costsProvisions on bad loans swing state-bank profits more than anything.
- Sustaining return on equityThe price leans on ICICI holding returns well above its cost of equity. Each point of return it sustains — or loses — moves the value sharply.
- Retail and unsecured growthFaster-growing retail loans earn more but carry more credit risk when the cycle turns.
05What could go wrong
- Corporate creditA turn in the corporate cycle would hit provisions first.
- Policy lendingGovernment priorities can shape lending and pricing.
- The credit cycleUnsecured personal loans and credit cards have grown quickly across the industry; a downturn there would show up in provisions first.
- Margin pressureRate cuts can compress lending margins faster than deposit costs fall.
06Which is better value?
Sign in free to see which trades further below its worth
- ✓Both fair values per share — each on the method that fits the business
- ✓Every step of both workings — growth, margins and cost of capital, with sources
- ✓Bull, base and bear cases — for each company
- ✓Downloadable reports — the full write-up for each, yours to keep
08Questions people ask
Is Bank of Baroda or ICICI Bank better value?
That turns on how far each share trades from its estimated fair value. Both figures, with every step of the working, are in the full valuations, free to view once you sign in. On the public numbers, Bank of Baroda trades at 7.2 times earnings and 0.85 times book value, and ICICI Bank at 19.2 times earnings and 3.00 times book value — but multiples alone mislead when two businesses work differently, which is why each is valued on the method that fits it.
What is the difference between Bank of Baroda and ICICI Bank?
Bank of Baroda, founded in 1908 in Vadodara (then Baroda), is one of India's largest public-sector banks and is majority-owned by the Government of India. ICICI Bank is India's second-largest private bank, lending to households, small businesses and large companies, with one of the strongest digital-banking franchises in the market.
Are Bank of Baroda and ICICI Bank valued the same way?
Yes — both on excess return, so their workings compare like for like.
What does today's price assume for Bank of Baroda and ICICI Bank?
Worked backwards from the share price, Bank of Baroda needs about 11.4% return on equity and ICICI Bank about 17.0% return on equity, against 13.8% and 17.3% in their own records.