RBI action may weigh on growth, increase costs for Bank of Baroda

The Q1FY24 data indicates over 90 per cent of savings and current accounts are sourced digitally

The Reserve Bank India’s (RBI’s) decision to ban the onboarding of new accounts on the “bob World” mobile digital platform led to a selloff in the Bank of Baroda (BoB) stock. The stock of the public sector bank dropped by around 3 per cent.

The central bank cited “material supervisory concerns”; news reports claimed mobile numbers were randomly linked to accounts to purportedly inflate registrations on bob World.

The Q1FY24 data indicated over 90 per cent of savings and current accounts were sourced digitally. Also, 43 per cent of time deposits in Q1FY24 were sourced via