Bank of Baroda share price target

Bank of Baroda (BOB) reported a solid earnings performance led by a strong recovery in NII and lower provisions even as lower treasury gains impacted other income. Domestic NIM, thus, expanded 31bp QoQ to 3.2%. Advances registered strong 5.5% QoQ growth. BOB's asset quality improved sharply as fresh slippage declined to INR28.3b (annualized slippage rate of 1.6%), which coupled with healthy recoveries and write-offs resulted in sharp 86bp/58bp QoQ improvement in GNPA/NNPA ratio, respectively. PCR thus increased ~350bp to ~71%. Total...

In 2QFY22, Bank of Baroda (BOB) has delivered an expected result on operating and asset quality front. Fresh slippages were marginally higher at 52bn v/s 51bn in 1QFY22. Furthermore, the reduction (up-gradation & recovery) stood 93bnbn v/s 98bn in the previous quarter. It reported...

BOB reported a strong earnings performance, supported by lower provisions and higher other income, even as NII remained under pressure. Domestic NIM moderated by 22bp QoQ to 2.9%. Business trends, however, improved, with advances growing at 4% QoQ. Asset quality witnessed an overall improvement. Fresh slippage stood at INR52.2b (annualized slippage rate at 3%). However, higher write-offs and recoveries resulted in an improvement in asset quality. The GNPA/NNPA ratio declined by 75bp/20bp QoQ, while PCR was stable ~67%. Total SMA...

Bank of Baroda is an Indian multinational, public sector banking and financial services company. It currently has 8,192 branches in India and 99 overseas offices across 20 countries. The bank merged with Vijaya Bank and...

Asset quality trends were stable sequentially in a challenging environment, with fresh slippage at INR51.3b (annualized slippage rate of 3.1%). However, higher write-offs and upgrades resulted in stable asset quality trends the GNPA/NNPA ratio declined 1bp/6bp QoQ, while PCR was broadly stable at ~68%. Also, total SMA 1/2 (>INR50m) declined to ~2.68%, while the restructured book stood at 3.2% of loans. Collection efficiency (ex-Agri) was stable QoQ at 93%, better vis-vis many other peers. The bank expects growth to pick up, led by retail segments, while corporate growth would see gradual recovery as the economic situation normalizes. We...

Decent operating performance with strong NII & lower opex Rs16.3bn) on back of continuing higher provisions on higher write-off & SME/Retail, while restructuring was slightly higher at 2.3% v/s 1.3% in Q4FY22. Overall stressed book (NPAs+Restructured+SMA) is still higher at...

Asset quality outlook improving; upgrade to BUY Motilal Oswal values your support in the Asiamoney Brokers Poll 2021 for India Research, Sales, Corporate Access and...

NII was up 4.5% YoY but down 5% QoQ to | 7107 crore, mainly on account of interest reversals on NPA and interest on interest relief. Global net interest margin (NIM) declined ~5 bps QoQ to 2.72%, while domestic margins declined ~23 bps QoQ to 2.73%. NIMs were impacted by 36 bps due to reversals of interest. Other income grew 71% YoY led by recovery from written-off accounts. Provisions for the quarter remained elevated and increased QoQ to | 3586 crore with | 4593 crore for NPA provisions and reversal in Covid buffer of | 1663 crore. Though, PBT came in at | 2680 crore,...