$BOB – Investment Snapshot

1. Peer Comparison (Valuation & Growth)

BOB: P/E ~6.5, P/B ~0.8–0.85, ROE ~14%

SBI: P/E ~9–10, P/B ~1.2, ROE ~16%

PNB: P/E ~8–9, P/B ~1.0, ROE ~12%

➡️ Insight: BOB is cheaper than SBI and offers slightly better ROE than PNB, making it an attractive value pick among PSU banks.

2. Dividend Potential

Dividend yield ~3.4%, with a consistent payout history.

Offers potential price appreciation (~12–15% upside) along with steady dividend income for investors.

3. Macro Sensitivity

As a PSU bank, BOB is sensitive to RBI interest rate decisions, government lending programs, and public borrowing trends.

Impact: Rate cuts could reduce margins, but strong credit growth in MSME/retail sectors may offset this.

4. Seasonality & Price Trends

August historically shows slight negative returns (~–2.5%).

Better months usually follow September, driven by festive demand and credit expansion.

Traders could view August dips as medium-term entry opportunities.

5. Scenario Outlook

Bull Case (₹280–₹300): Loan growth >13%, stable NII, low provisioning.

Base Case (₹265–₹275): Moderate earnings, decent asset quality, aligns with consensus.

Bear Case (₹220–₹230): Falling NII, deteriorating asset quality, macro challenges.