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The market asks roughly as much of Bank of Baroda as of State Bank of India.
At current prices, buyers of Bank of Baroda are assuming about 11.4% return on equity against 13.8% in its own record; for State Bank of India it is 14.8% against 16.1%. 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: State Bank of India is worth about 7.0 times Bank of Baroda on the stock market.
- Record: State Bank of India has grown revenue faster: Bank of Baroda compounded at about 9% a year (FY2020–FY2026) and State Bank of India at about 12% (FY2019–FY2026).
- What to watch: return on equity at Bank of Baroda; return on equity versus its own history at State Bank of India.
| Bank of Baroda | State Bank of India | |
|---|---|---|
| Price | ₹274 | ₹1,080 |
| Market cap | ₹1.42L Cr | ₹9.97L Cr |
| P/E | 7.2 | 11.0 |
| P/B | 0.85 | 1.62 |
| 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.
The bank the whole country runs on
State Bank of India is the country's largest bank by deposits, loans, branches and customers, and it is majority-owned by the Government of India. It lends to everyone from farmers and home buyers to the largest corporates, and its group includes SBI Life, SBI Card, the SBI Mutual Fund asset manager and SBI General Insurance.
02The records side by side
State Bank of India has grown revenue faster: Bank of Baroda compounded at about 9% a year (FY2020–FY2026) and State Bank of India at about 12% (FY2019–FY2026). By revenue, State Bank of India is about 4.5 times the size of Bank of Baroda. Bank of Baroda kept 12.4% of revenue as net profit in FY2026; State Bank of India kept 12.0% of revenue as net profit in FY2026.
Full ten-year tables and charts are on each company's page: Bank of Baroda · State Bank of India.
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.
- Return on equity versus its own historySBI's value depends on whether recent returns hold through a full credit cycle — something it has not shown before.
- Credit costsBecause the book is so large, even a modest rise in fresh bad loans would show up quickly in profit.
05What could go wrong
- Corporate creditA turn in the corporate cycle would hit provisions first.
- Policy lendingGovernment priorities can shape lending and pricing.
- A turn in corporate creditSBI's history shows how fast large-company defaults can erase years of profit.
- Staff and pension costsWage settlements at a public-sector bank are less flexible and can lift costs in step.
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 State Bank of India 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 State Bank of India at 11.0 times earnings and 1.62 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 State Bank of India?
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. State Bank of India is the country's largest bank by deposits, loans, branches and customers, and it is majority-owned by the Government of India.
Are Bank of Baroda and State Bank of India 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 State Bank of India?
Worked backwards from the share price, Bank of Baroda needs about 11.4% return on equity and State Bank of India about 14.8% return on equity, against 13.8% and 16.1% in their own records.