Public sector banks are attracting investors, with Bank of Baroda (BoB) standing out for its strong growth and asset quality. Since January 2023, BoB’s stock has risen 32%, yet remains undervalued at a P/B of 0.92 times. Key metrics like RoE (19.2%) and GNPA (2.5%) highlight its improvement, narrowing the gap with SBI, which trades at a higher P/B of 1.5x. A conservative P/B of 1.1-1.2x implies a 21%-33% upside, targeting ₹290-₹320. Despite challenges like rising deposit costs and stress in personal loans, BoB’s solid fundamentals and management actions support a positive long-term outlook.