Bank of Baroda share price target

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...

Bank of Baroda (BoB) 2QFY16 result was way below our and street estimates due to sharp increase in provision expenses by 113% yoy and 215.4% qoq to Rs18.9bn. This was due to sharp increase in incremental slippages to Rs69.6bn (slippage ratio of 6.8%) v/s Rs19.1bn (slippage ratio of 1.8%) in 1QFY16 and Rs18.5bn (slippage ratio of 1.94%) in 2QFY15. Higher slippage was primarily due to classification of a loan account as fraud along with higher impairment in large corporate portfolio. Further the bank has only done provision of 25% on loan account declare as a fraud and hence 2HFY6E earnings will continue to get negatively impact by higher provisions. Hence,...

Bank of Baroda reported a PAT of Rs 598 crs down by 48.3% Y-o-Y lower than expectations due to higher provisions. Key highlights: 1) NII depicted a slow growth of 1.5% Y-o-Y & declined by 3.5% Q-o-Q owing to slow credit growth and high interest reversals...

BOBs core & net earnings were above estimates by 5/30%

BOBs core & net earnings were above estimates by 5/30% with better NIM performance and lower provisions, despite sharp rise in opex. Higher than estimated staff cost ( 22/45% YoY/QoQ) was a negative surprise vs.

BoB's Q1FY16 results were in- line with estimates as earnings declined by 22.7% YoY (75.8% QoQ growth on lower base) to Rs 10.5 bn. Asset quality deteriorated as GNPA and NNPA increased sequentially to 4.13% and 2.07% respectively.