Bank of Baroda share price target

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...

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...