Bank of Baroda (BoB) has reported substantially improved performance on operating front in 1QFY17 with its operating profit rising by 21.2% yoy & 3.8% qoq to Rs26.7bn, led by 3.5% yoy & 15.3% qoq decline in operating expenses to Rs21.4bn along with healthy 8.8% yoy growth (- 5.7% qoq) in operating income to Rs48.2bn. However, the Bank continues to disappoint on asset quality front owing to higher slippages and lower upgrades and recovery. Fresh addition to gross NPA stood at Rs61bn in 1QFY17 vis--vis Rs59.3bn in 4QFY16 & Rs19.1bn in 1QFY16. Upgrade and recovery declined to Rs24.8bn in 1QFY17 vs. Rs32bn in 4QFY16. Though BoB's new Management...