Bank of Baroda share price target

ICICI Securities Ltd | Retail Equity Research The bank reported a loss of | 3230 crore largely due to significantly higher-than-expected provisions of | 6857 crore (provisions in...

8 BOB reported a loss of Rs 32.3bn due to higher loan loss provision (Rs49bn) and provisiononpensionliability(Rs15.6bn)onmigrationtonewmortalitytable. 9 Preprovision profit improved sequentially owing to one off gains like interest on...

Building for brighter future; Focus on core operating profitability Bank of Baroda (BOB) reported second consecutive quarterly net loss of INR32b+ led by focus on strengthening balance sheet (aggressive recognition of stress loans...

Bank of Baroda (BoB) has declared another quarter of loss with the new management providing higher provisioning for AS-15 employees' pension liability as well as for the stressed loan and UDAY bonds. The Bank has decided to shift the employees' pension on new mortality table of LIC 2006-08 from LIC 1994-96, which resulted in higher provisioning to the tune of Rs15.7bn in 4QFY16. However, fresh slippages normalized to Rs59.3bn with slippage ratio of 6.2% as guided by the Management v/s Rs157.9bn slippage ratio of 15.2% in 3QFY16 and Rs278.3bn slippage ratio of 6.5% in FY16. The Bank has also hiked provisioning converge ratio, including...

Bank of Baroda (BoB) took aggressive steps to clean up its balance sheet and recognized all the RBI identified weak accounts as NPA during the quarter (3QFY2016). Consequently the provisions went up substantially and the bank reported a loss of Rs3,342cr. Substantial rise in provisions and decline in loan book resulted in loss at the net ..

Commentary by the new management team has built our hopes on BoB's attainment of its lost glory in the coming quarters. However, the key lies in the execution of the new plan in coming periods. On the other hand, sharp incremental stressed asset formation in 3Q along with subdued operating performance will continue to impact its performance in the coming period. Incorporating 3Q result, we revise downward FY16-17E earnings by 70-135% and introduce FY18E estimates. Nevertheless, Bank of Baroda seems in good hands in handling the clean-up of current loan book and enforcing strategic plan. Hence, we maintain our NEUTRAL view on the stock...

With a sharp deterioration in asset quality, Bank of Baroda (BoB) joined the 3QFY16 asset quality `crackwagon?. BoB implemented the entire AQR (RBI?s asset quality review) in one fell swoop, instead of using the two quarter window afforded, along with conservatively recognising several weak loans as NPAs. Slippages zoomed to Rs 156bn (15.8%), of which the AQR alone accounted for Rs 74bn.

8 Operating performance suffered as preprovision profit declined 27% yoy to Rs 17bn, ledbyfallinNII(18%yoy)andweakgrowthinnoninterestincome(2.1%yoy). 8 SlippagespikedatRs156bn(H1slippageswasRs88bn),asaresultGNPAincreased...

improvement in spread by reducing low margin buyer's credit; introduce risk based pricingmodel;reducedependencyonsyndicateloans. 9 Managementexpectstogrowthebusinesswithfocusonprofitability.Expectstoreach...