Bank of Baroda share price target

Domestic loan growth came in at 14.2% YoY to INR3.7t, led by retail loans (+24.2% YoY). Within retail, home/auto loan growth was at 22.1%/49.4% YoY, whereas SME loan growth was muted at 7.2% YoY. Total deposits grew by 8.0% YoY to INR6.4t, taking the domestic CD ratio to 71.5%. Domestic CASA ratio improved by 26bp QoQ to 40.2%. Fresh slippages inched up to INR31.9b, of which INR5.3b was due to the IL&FS; Group, leading to an annualized slippage ratio of 3.3%. Write-offs for the quarter came in at INR67.5b, leading to a decline of 140bp/ 93bp QoQ in...

Asset quality improved sequentially as slippages declined to 3.2% of loans in Q3FY19 as compared to 3.9% in Q2FY19, of which 84% of the slippages were from the pre-disclosed watchlist. Consequently, Gross and Net non-performing asset (NPA) ratios improved by 77 and 60 bps QoQ to 11.0% and 4.3%, respectively. Notably, BOB has a total exposure of Rs4,680cr towards IL&FS;, of which Rs1,170cr slipped during the quarter and the residual continues to remain standard. Further, BOB has an exposure of Rs23,654cr to NCLT accounts with PCR of 73%. Going forward, we believe that asset quality will improve as the incremental loan addition is with...

ICICI Securities Ltd | Retail Equity Research Asset quality saw an improvement despite higher fresh slippage of | 2933 crore, out of which | 1169 crore is due to IL&FS.; Absolute GNPA declined to | 53184 crore in Q3FY19 vs. | 55121 crore in Q2FY19. Accordingly, GNPA ratio saw an improvement of ~77 bps to 11.01% attributed to higher recoveries. The bank has made total provision for NPA of | 3416 crore out of which | 919 crore is...

Maintain NEUTRAL' with a revised TP of Rs 124 (0.8xDec-20E ABV of Rs 155). BOBs 3Q performance was encouraging with sustained and broad based domestic loan growth (21%), gradual NIM improvement (8bps) and controlled opex (despite higher provisions towards employee costs). Asset quality improved sequentially (GNPAs down ~3% QoQ) as slippages (~Rs 37bn, 3.22% ann.) were at a 9 qtr low (in spite of a large a/c: ~Rs 11.7bn) and w/offs increased (~Rs 34bn, 3x QoQ).

29 January 2019 BoBs 3QFY19 PAT came in much lower than estimate at INR4.7b (est. INR9.3b) largely due to higher provision for NPAs at INR34.2b. BOBs front- ended provisions of INR9.2b are in excess of IRAC norms. PPoP stood flat at INR35.4b on 3% YoY decline in other income and 17% YoY growth in employee expense due to higher depreciation of INR2.1b and provision of INR1.1b for pension. Global NIM came in at 2.69% supported by improvement in international NIMs to 1.99% (+33bp QoQ). Yield on international loans improved by 80bp QoQ to 4.

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.

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

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...