Bank of Baroda share price target

Advances growth likely to remain sluggish: Pipeline for corporate advances growth has been absolutely exhausted. Bank is not witnessing any fresh inquiries for Greenfield projects as well as expansion of current facilities. Retail (12.4%) and SME (15.1%) advances continue to be the key driver for the advances growth.

BOB reported a weak set of numbers led by a sharp deterioration in asset quality. G/NNPA spiked 18/24% QoQ driven by the highest ever quarterly slippages of Rs 30bn (3.1% ann.) & restructuring of Rs 16bn.

Conservative & Cautious approach to loan disbursement Bank of Baroda's (BOB) five year CAGR in advances stands at 25% from FY08 to FY13. However, in FY13, the advances...