Bank of Baroda shares slip 4% on RBI's directive to stop onboarding new customers on mobile app

Shares of Bank of Baroda slipped nearly 4% in early deals today after the Reserve Bank of India (RBI) asked the state-owned lender to suspend any further on-boarding of customers on to its mobile banking app with immediate effect. Bank of Baroda stock slipped 3.71% to Rs 206.25 against the previous close of Rs 214.20 on BSE. Market cap of the bank slipped to 1.07 lakh crore.

Total 6.79 lakh shares of the firm changed hands amounting to a turnover of Rs 14.19 crore. The stock has gained 60% in one year but risen 12 per cent since the beginning of this year.

Bank of Baroda stock has a one-year beta of 1.5, indicating very high volatility during the period.

In terms of technicals, the relative strength index (RSI) of Bank of Baroda stands at 56.9, signaling it's trading neither in the oversold nor in the overbought zone. Bank of Baroda shares are trading lower than the 5 day, 10 day and 20 day moving averages but higher than the 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

Commenting on the RBI directive, the bank said, it would not have a material impact on the bank’s overall business and growth plans.

“While the bank has already carried out corrective measures to address the concerns of the RBI, we have initiated further steps to plug any remaining gaps identified and we will work closely with the RBI to address their concerns at the earliest to their satisfaction,” said the lender on Tuesday.

BOB had 5.3 crore app downloads and 3 crore activated users as on March 2023.

“We would also like to assure all our existing customers that they will not face any disruption whatsoever and will continue to enjoy uninterrupted services on the Bank’s bob World mobile app,” said the lender in a communication to bourses.

“The onboarding of customers on the application would be subject to further strengthening of related processes by the bank to the satisfaction of RBI,” added the lender.

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