Bank of Baroda share price target

BOB reported PAT of Rs 2.5 bn, weighed down by one-time interest reversals on SDR/S4A accounts (~Rs 3.6 bn) and higher provisions (up 16% QoQ). NIM too declined 23 bps QoQ to 2.1% given falling LDR (down ~580 bps YoY) and aforementioned interest reversals.

BoB's 3QFY17 results remained disappointing. The bank continues to face headwinds on asset quality on one hand, while on the other hand the balance sheet continued to de-grow as the management intentionally downsized some low margin business. Coming few quarters might be challenging for the bank. With continued pressure on asset quality a..

BOBs 3Q earnings were a mixed bag. The key disappoints were (1) higher slippages, (2) sharp drop in NIM, (3) dip in Tier I and (4) below estimates core and net earnings. However, on the positive front (1) PCR further improved to 65% (best amongst peers), (2) watch-list (-27%) and SMA II (-32%) significantly dropped QoQ, (3) net stressed were assets stable at 9.4% and (4) CASA surged 25% (33%, 560bps QoQ).

ICICI Securities Ltd | Retail Equity Research PAT declined 54% QoQ to | 253 crore, below our estimate of | 412 crore led by higher-than-expected provisions and large trading gains Asset quality stress continued with high slippages at | 3073 crore vs. | 2252 crore in Q2FY17 while absolute GNPA slowed to | 42642 crore (11.4% of loans) from | 42949 crore in Q2FY17 due to higher w/offs. Consequently, NNPA declined to | 19006 crore from | 19342 crore with NNPA ratio dipping 3bps QoQ at 5.43%....

ICICI Securities Ltd | Retail Equity Research Though asset quality stress continued, the pace was considerably lower than previous quarter. Fresh slippages were at | 2252 crore in Q2FY17 compared to | 5527 crore in Q1FY7 & | 5030 in Q4FY16. Absolute GNPA was stable QoQ at | 42949 crore (GNPA ratio at 11.35%) owing to healthy recoveries & upgrades. The restructured book was at | 13860 crore, forming ~3.9% of total loans. Total stressed assets (GNPA + restructured) were at 15.3%...

BOBs 1QFY17 results were a mixed bag. On operational front, core earnings (Rs 33.7bn, 1% QoQ) were higher than estimates with better NIM performance ( 10bps QoQ), despite moderation in CD ratio and elevated stress. Net earnings beat estimates by 20% on higher treasury gains, controlled opex and lower provisions (albeit PCR maintained at ~60%).

Top takeaways from Q1FY17 : PAT of Rs4.2bn (below expectation) due to higher loan loss provision (Rs20bn). Strong pre?provision profit of Rs27bn (+21.2% yoy) driven by NII and treasury gain. Slippage was higher at Rs 60bn and recoveries were strong, as a result GNPA increased to 11.15% (+116bps qoq) and NNPA 5.73% (+67bps qoq). PCR remained flat at 60.2%. Slippage included Rs 12bn from small ticket loan which has emerged due to correction in system. Slippage from corporate segment was Rs13.8bn and balance contributed equally by agri, retail and SME. Slippage from restructured asset was Rs4.8bn. The total stress asset pool (GNPA + Standard restructured + SMA2) increased by Rs7.3bn qoq to Rs681bn (18.8% of loan book).Phillip Capital maintain Buy rating on the stock with PT of Rs200 (unchanged).

Asset quality stress remained elevated. Fresh slippages stayed elevated at | 5527 crore, led by ~| 1400 crore towards corporate exposure, | 1200 crore related to small ticket loans. No loan was restructured under 5/25 scheme. Two accounts worth ~| 500 crore, were restructured as per SDR. Absolute GNPA increased to | 42992 crore (11.15% of loans) from | 40521 crore (9.99%) in Q4FY16. Standard restructured book was at | 14164 crore, forming ~3.7% of total loans. With increase in PAT estimate, ICICI Securities Limited revise the target price higher to | 152/share, keeping our target multiple stable at 1.3x FY18E ABV. The management outlook of bringing RoE to >10% in next two years, upfront recognition of NPA pain and healthy tier I ratio of 10.7% provide comfort.They maintain HOLD recommendation.

Bank of Baroda (BOB) reported PPoP (+21% YoY) beat of 42% in 1QFY17, helped by strong NII performance (20% beat) and contained costs (opex beat of 10%). While slippages were high at INR61b (6% annualized slippage ratio), management maintained the slippages guidance of INR150b for FY17, which is...

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...