In light of the recent Bank of Baroda case, numerous banks are reportedly reassessing their mobile app customer onboarding processes, according to insiders. Compliance checks are underway at several public sector banks to ensure adherence to mobile app user onboarding regulations.
The Reserve Bank of India (RBI), currently scrutinizing Bank of Baroda, is anticipated to take action against other banks in the increasingly competitive banking landscape. The allegations center on the fraudulent linking of mobile numbers with customer accounts by bank employees as a strategy to artificially inflate the active user base.
Senior officials have sought explanations from certain bank staff about these practices. Other implicated banks remain unidentified as BQ Prime was unable to confirm their involvement. As of Friday, Bank of Baroda has not responded to inquiries sent on Thursday regarding the issue.
According to InvestingPro data, the Bank of Baroda has a market capitalization of 910.36M USD and is trading at a P/E ratio of 245.9. Despite a negative 1-year price total return of -15.73%, the bank is still trading at 84.27% of its 52-week high. The upcoming earnings date for Bank of Baroda is slated for November 29, 2023.
InvestingPro Tips highlights that the Bank of Baroda has been experiencing accelerating revenue growth and has consistently increased its earnings per share. However, it suffers from weak gross profit margins and is quickly burning through cash, which may force dividend cuts. The bank is considered a prominent player in the banking industry, with stockholders receiving high returns on book equity. It's worth noting that two analysts have revised their earnings upwards for the upcoming period, indicating a potential positive outlook for the bank.
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