New Research Reports

Deposits grew by 2.2% (YoY) with CASA portfolio registering a growth of ~5.5% during the same period. GNPA & NNPA decreased by 8bps and 85bps at 15.7%& 8.4% resp....

Bank of Baroda announced swap ratios for the merger with Vijaya Bank and Dena Bank. As per the announcement, every 1000 shares owned in Vijaya bank & Dena bank will receive 402 & 110 shares respectively of BoB. The swap ratio values Dena bank at ~| 3000 crore (25% discount to...

Bank of Baroda's (BOB) board has approved the merger with Dena Bank and Vijaya Bank with the following share swap ratios: (a) 402 equity shares of BOB for every 1,000 equity shares of Vijaya Bank and (b) 110 equity shares of BOB for every 1,000equity shares of Dena Bank.

Recovery playing out as asset quality pressure eases SBI is the largest commercial bank in India with over 1/5th market share of the Indian banking sector. It has a strong domestic presence with more than 22,413...

Established in 1908 by Maharaja Sayajirao Gaekwad of Baroda, BoB was one of the 14 banks that were nationalized in 1969.

SBIN earnings have been suppressed over past several years owing to challenges on asset quality, merger issues and adverse rate environment. However with bulk of asset quality cleansing behind and sharp decline in watch-list size to INR203b (~1% of loans) we expect credit cost to decline sharply thus paving way for earnings recovery.

Slippages moderated to 3.9% of loans as compared to 5.0% in Q1FY19, of which 84% were from watch list. Consequently, Gross and Net non-performing asset (NPA) ratios improved by 68 and 54 bps sequentially to 11.8% and 4.9%, respectively. Provision coverage ratio (PCR) also improved by 164 bps QoQ to 70.8%. Though, management did not disclose amount/percentage exposure to IL&FS; group, however, the watch list of Rs8,500cr includes IL&FS; exposure towards parent company & financial service entity. BOB has an exposure of Rs21,980cr to NCLT accounts with PCR of 65%. Going forward, we believe that asset quality will improve as the incremental loan...

Canara Bank reported NII of INR 32.8bn (-15% q-o-q & 18% y-o-y) largely due to one-off lumpy interest recovery of INR 5.2bn from resolution of Bhushan steel in Q1 FY19. Net total Income stood at INR 48.3bn (-15% q-o-q & 2% y-o-y) largely due to lower other income of INR 15.55bn (-15% q-o-q & -20% y-o-y). Elevated provision of INR 28.4bn (10% q-o-q & 31% y-o-y) and a tax write back of INR 8.1bn resulted positive PAT of INR 3bn (6% q-o-q & 15% y-o-y). Loan book for the quarter stood...

Indian Bank (IB) reported NII of INR 17.3bn (12% y-o-y & -4% q-o-q) led by loan book growth of (19% y-o-y & 5% q-o-q) to INR 1.7bn. Margins for the quarters stood at 2.97% (12bps y-o-y & -17bps q-o-q). Weak treasury gains led to decline in other income to INR 4.3bn (-40% y-o-y & -3% q-o-q) and PPOP income of INR 11.9bn (-13% y-o-y & -8% q-o-q). Elevated provision of INR 10bn (35% y-o-y & -2% q-o-q) resulted in lower PAT of INR 1.5bn (-67% y-o-y & -28% q-o-q). GNPA / NNPA stood at 7.2% / 4.2% for the quarter respectively. Asset Quality disappoints; PCR declines by 356bps q-o-q to 61%. Asset quality deteriorated on a sequential basis with GNPA / NNPA in absolute terms stood at INR 123.3bn / 70.6bn (4% / 18% q-o-q)...

Bank of India Q2FY19 results Comment NII fell to Rs. 2926.79 Cr in Q2FY19 compared to Rs. 3354.3 Cr in Q1FY19. NII rose by 0.64% ( Rs. 18.55 Cr ) when compared with the same period last year.