NII increased 6.8% YoY and 10.1% QoQ to | 7508 crore on the back of an improvement in net interest margin (NIM). NIMs during the quarter increased 31 bps QoQ to 2.86% on account of a steeper decline in cost of funds than yields. Other income jumped 54.1% QoQ to | 2802 crore, on account of 22.2% QoQ rise in fee income while trading gains were up 85.9% QoQ. Recovery from written-off account also improved from | 94 crore in the previous quarter to | 341 crore in Q2FY21. Provisions declined 49% QoQ as a result of lower slippages. This coupled with higher income led the bank...

Bank of Baroda (BOB) reported strong earnings, led by higher treasury gains and steady NII growth as domestic margins expanded by 33bp and lower provisions. On the business front, loan growth trends remained muted, mainly due to 7% QoQ decline in corporate advances. The pickup in retail...

Bank of Baroda (BOB) reported strong earnings with net profit growing by 128% YoY (1QFY21 was lossmaking) on the back of provisions coming down by 28.7% YoY and 46.7% QoQ. NII registered a growth of 6.8% YoY and 10.1% QoQ, driven by margin expansion of 5bps YoY and 31bps QoQ to 2.86%. The bank undertook rate reduction during the quarter, which led to a sharp drop in cost of deposits. Inflow into SA accounts was also quite strong. Non-interest income was flat YoY but up 54% QoQ, with fee income growing by 4% YoY and 22% QoQ. Growth in advances was 5.1% YoY (but down 2.4% QoQ). Growth in the international portfolio was 2.7% YoY while gross domestic advances grew by 5.8% YoY. Earlier, the bank had stated that it was looking to deliver a credit growth of 7-8%, which we believe is unlikely to materialize given the current economic situation. Also, merger integration, which is likely to...

NIM was sequentially higher by 30 bps to 2.86% due to lower slippages at 2% (including standstill NPAs) and improved spreads. Without standstill on NPAs, gross NPAs would be at 9.33% against...

Bank of Baroda (BOB) reported a net loss of Rs8.6bn for the quarter versus our expectation of a tiny profit. The outcome can be mainly attributed to elevated provisioning as well as subdued income generation. Even though the bank was able to register 4.9% YoY and 0.3% QoQ growth in NII (despite a fall in loan yields and interest income), the non-interest revenue fell sharply by 5.1% YoY and 35.9% QoQ. Fee income was down 11.6% YoY. Growth in advances was 8.4% YoY (but down 0.5% QoQ), in line with expectation. Growth in the international portfolio was higher at ~14% YoY while gross domestic advances grew by 7.6% YoY. For FY21, the bank is looking to deliver a credit growth of 7-8%, which we believe may not materialize given the current economic situation....

high provisioning, although asset quality improved with continued PCR significantly as offering morat on selected basis. NII performance was decent but lower other income & higher staff opex led to mediocre PPOP. Concerns...

Total provisioning for Q1FY21 was down 17.8% YoY to | 5628 crore. The bank has provided | 996 crore for Covid-19 during the quarter. As on June 30, 2020, total Covid provisioning was at | 1806 crore (~25 bps of advances). PCR increased from 81.3% in Q4FY20 to 83.3% in Q1FY21. Fresh slippages slumped 10.2% QoQ to | 2740 crore with ~| 2121 crore attributable to the international book. Amid moratorium, GNPA remained flat QoQ at | 6913 crore (GNPA ratio 9.39%), NNPA ratio declined 30 bps QoQ to 2.83%. Watchlist for the quarter was at | 13000 crore, up 4% QoQ....

BoB's reported a loss of Rs86 bn in Q1FY21 led by higher provisions. Though domestic slippages were muted owing to ongoing loan moratorium, two-third of slippages in 1QFY21 pertained to the international portfolio. Slippages from overseas book have been elevated over the last few quarters. The quarter also saw high additions to watch-list from the NBFC and power sector. The NBFC addition pertained to a single well rated infra financing NBFC account, where the bank has so far made 35%...

10 August 2020 Bank of Baroda (BOB) reported weak operating performance, with subdued margins and revenue growth; elevated provisions led to net loss of INR8.6b. On the asset quality front, slippages were trending lower, primarily on account of the asset classification benefit; however, NPL formation in the international portfolio stood elevated. The moratorium book declined to 21.4% and remains a key overhang on asset quality. Furthermore, CET-I declined to ~9.1%, which raises concerns regarding the banks capitalization levels and its ability to absorb further loss as we expect credit cost to remain elevated. We cut the EPS estimate for FY21/FY22 by 66%/31%, primarily as we factor higher credit cost and moderate our business growth/margin estimates. BOB reported a weak quarter with net loss of INR8.6b, affected by weak operating performance and elevated provisions. NII grew at 5% YoY (flat QoQ) to INR68.2b, with global NIMs declining by 8bp QoQ to 2.55%.

A year of elevated NPAs and ultra-low ROE ahead Bank of Baroda (BOB) reported NII of Rs67.9bn, up 5% YoY and down 4.6% QoQ, led by NIM contraction of 13bps QoQ. On a YoY basis, NIM was up 5bps at 2.67%. Domestic NIM stood at 2.78%, down 10bps QoQ. Operating profit saw healthy growth, up 47.9% YoY and 3.3% QoQ. Subdued net operating income growth was offset by reduction in total opex (down 23.2% YoY, 8.1% QoQ). Employee expenses were down 41.4% YoY and 24.7% QoQ. Provisions for the quarter stood at Rs68.4bn, down 35.5% YoY and 4.4% QoQ, resulting a pre-tax loss of Rs17.2bn. Bank reported a PAT of Rs5.1bn on the back of tax benefit compared to losses in 3QFY20 and 4QFY19....

BoB reported a loss at PBT level of of Rs17.2bn in 4QFY20 led by higher provisions, though tax reversal resulted in a PAT of Rs5bn. Slippages were lower at 2.6%, partly benefitting from asset quality...

Margins improved, with global NIM during Q4FY2020 at 2.67% from 2.62% in Q4FY2019 and domestic NIM increasing to 2.78% from 2.68%. Fresh slippage for the quarter was at Rs. 3,050 crore, lower sequentially,...

24 June 2020 BOB reported mixed 4QFY20 operating performance as moderation in NII was supported by lower opex and higher treasury income. While elevated provisions led to PBT loss, higher tax reversal resulted in the bank reporting profits. Lower slippages were aided by asset classification benefit resulting in an improvement in asset quality ratios. However, higher moratorium book of 55% (as at end-May20) should keep asset quality under pressure. We cut our EPS estimate for FY21/FY22E by 34%/5%, as we increase our credit cost projection and fine-tune our margin/growth estimates. BOB reported PBT loss of INR17.2b, impacted by higher provisions of INR68.4b while tax reversal of INR22.3b resulted in net profit of INR5b. NII increased 5% YoY to INR68b (in-line). Global NIMs declined by 13bp QoQ to 2.67% while domestic NIMs dipped 10bp QoQ. Total net revenue grew 3% YoY.

On advances, the domestic book witnessed muted traction at | 544736 crore; 0.7% YoY. Retail book growth continued to remain healthy at 15% YoY, led by home as well as auto loans. Post continued de-growth in previous quarters, foreign book trend reversed with 68% QoQ growth in Q3FY20 to | 109739 crore. In line with advance, domestic deposit growth remained in lower single digit at | 78207 crore. However, continuous focus on low cost deposit led to higher traction in saving and current balance thereby leading to ~1% uptick in CASA ratio to 38.84%....

Bank of Baroda (BoB) reported its 3QFY20 results with the key strategic pointers being: (1) Slippages remain elevated (2) Total deposits growth was muted at 1.1% YoY, CASA was up 8.8% YoY (3) Cost to income ratio inched up to 49.8% (+400bps QoQ) majorly due to one-offs and provisions (4) Domestic NIM was up 18bps YoY, down 1 bp QoQ at 2.80% (See comprehensive analyst meet takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, BoB posted NII growth of 9% YoY at Rs71.3bn, PPOP growth of 9% YoY at Rs49.6bn and a loss of Rs14.1bn compared to a profit of Rs73.7bn in 3QFY19. We have revised our estimates for FY20/FY21/FY22 and retained Buy rating on BoB, revising our target price to Rs112 (from Rs117...

Bank of Baroda is an Indian multinational, public sector banking and financial services company. It currently has 9,449 branches in India and 100 overseas offices across 21 countries. The bank merged with Vijaya Bank and...

Bank of Baroda (BoB) reported its 2QFY20 results with the key strategic pointers being: (1) Slippages were elevated on account of 3-4 large accounts; GNPA ratio is down 3 bps QoQ (2) Sector: Banking Advances growth at 3% YoY was driven by retail growth of 16.2%. Expect overall business traction to improve in H2FY20 (3) NIMs expanded by 19 bps QoQ to 2.81% on the back of favourable CMP: Rs94...

NII growth came in at 10% YoY aided by 19 bps QoQ expansion in margins to 2.81%. Other income witnessed robust surge of 41% YoY largely due to multi-fold increase in trading income at | 905 crore & recovery while core fee income remained muted. Accordingly, operating profit was at | 5336 crore, up 23% YoY. Provisions remain elevated at | 4209 crore led by higher fresh slippages leading to PAT of | 737 crore vs. our estimate of | 933 crore. Asset quality continued to remain steady QoQ with GNPA & NNPA ratio at 10.25% & 3.91%, respectively. Absolute GNPA was at | 69969 crore, flat...

Bank of Baroda (BoB) reported its 1QFY20 results with the key strategic pointers being: (1) Falling short on recoveries merely a timing issue. Net NPA <3% guidance maintained (2) Advances growth at 6.44% YoY was driven by retail growth of 20.5%. Expect overall business traction to improve: (3) Global NIM contracted 13 bps QoQ to 2.62% driven dip in international margins and decline in investment yields: (See comprehensive analyst meet takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, BoB posted NII growth of 3% YoY at Rs65.0bn, PPOP growth of 4% YoY at Rs42.8bn and PAT of Rs7.1bn compared to a loss of Rs0.5bn in the corresponding quarter last year. We have revised our estimates for FY20/FY21 and retained Buy...

On merged basis BoB has Rs1.06tn of exposure to NBFCs which is at 15% of loans and is extremely high and accounts for some stress as well BOB's earnings saw marginal miss with our estimates at Rs7.1bn (PLe: Rs8.7bn) mainly from lower other income & higher opex from the merger. Provisions though remains elevated on continued slippages was largely in line with expectations. Slippages came in higher with corporate slippages at Rs15.0bn from Rs55.8bn was from the watchlist. But the watch-list has...