Bank of Baroda share price target

Total provisioning for Q1FY21 was down 17.8% YoY to | 5628 crore. The bank has provided | 996 crore for Covid-19 during the quarter. As on June 30, 2020, total Covid provisioning was at | 1806 crore (~25 bps of advances). PCR increased from 81.3% in Q4FY20 to 83.3% in Q1FY21. Fresh slippages slumped 10.2% QoQ to | 2740 crore with ~| 2121 crore attributable to the international book. Amid moratorium, GNPA remained flat QoQ at | 6913 crore (GNPA ratio 9.39%), NNPA ratio declined 30 bps QoQ to 2.83%. Watchlist for the quarter was at | 13000 crore, up 4% QoQ....

10 August 2020 Bank of Baroda (BOB) reported weak operating performance, with subdued margins and revenue growth; elevated provisions led to net loss of INR8.6b. On the asset quality front, slippages were trending lower, primarily on account of the asset classification benefit; however, NPL formation in the international portfolio stood elevated. The moratorium book declined to 21.4% and remains a key overhang on asset quality. Furthermore, CET-I declined to ~9.1%, which raises concerns regarding the banks capitalization levels and its ability to absorb further loss as we expect credit cost to remain elevated. We cut the EPS estimate for FY21/FY22 by 66%/31%, primarily as we factor higher credit cost and moderate our business growth/margin estimates. BOB reported a weak quarter with net loss of INR8.6b, affected by weak operating performance and elevated provisions. NII grew at 5% YoY (flat QoQ) to INR68.2b, with global NIMs declining by 8bp QoQ to 2.55%.

BoB's reported a loss of Rs86 bn in Q1FY21 led by higher provisions. Though domestic slippages were muted owing to ongoing loan moratorium, two-third of slippages in 1QFY21 pertained to the international portfolio. Slippages from overseas book have been elevated over the last few quarters. The quarter also saw high additions to watch-list from the NBFC and power sector. The NBFC addition pertained to a single well rated infra financing NBFC account, where the bank has so far made 35%...

BoB reported a loss at PBT level of of Rs17.2bn in 4QFY20 led by higher provisions, though tax reversal resulted in a PAT of Rs5bn. Slippages were lower at 2.6%, partly benefitting from asset quality...

24 June 2020 BOB reported mixed 4QFY20 operating performance as moderation in NII was supported by lower opex and higher treasury income. While elevated provisions led to PBT loss, higher tax reversal resulted in the bank reporting profits. Lower slippages were aided by asset classification benefit resulting in an improvement in asset quality ratios. However, higher moratorium book of 55% (as at end-May20) should keep asset quality under pressure. We cut our EPS estimate for FY21/FY22E by 34%/5%, as we increase our credit cost projection and fine-tune our margin/growth estimates. BOB reported PBT loss of INR17.2b, impacted by higher provisions of INR68.4b while tax reversal of INR22.3b resulted in net profit of INR5b. NII increased 5% YoY to INR68b (in-line). Global NIMs declined by 13bp QoQ to 2.67% while domestic NIMs dipped 10bp QoQ. Total net revenue grew 3% YoY.

Margins improved, with global NIM during Q4FY2020 at 2.67% from 2.62% in Q4FY2019 and domestic NIM increasing to 2.78% from 2.68%. Fresh slippage for the quarter was at Rs. 3,050 crore, lower sequentially,...

On advances, the domestic book witnessed muted traction at | 544736 crore; 0.7% YoY. Retail book growth continued to remain healthy at 15% YoY, led by home as well as auto loans. Post continued de-growth in previous quarters, foreign book trend reversed with 68% QoQ growth in Q3FY20 to | 109739 crore. In line with advance, domestic deposit growth remained in lower single digit at | 78207 crore. However, continuous focus on low cost deposit led to higher traction in saving and current balance thereby leading to ~1% uptick in CASA ratio to 38.84%....

Bank of Baroda is an Indian multinational, public sector banking and financial services company. It currently has 9,449 branches in India and 100 overseas offices across 21 countries. The bank merged with Vijaya Bank and...

NII growth came in at 10% YoY aided by 19 bps QoQ expansion in margins to 2.81%. Other income witnessed robust surge of 41% YoY largely due to multi-fold increase in trading income at | 905 crore & recovery while core fee income remained muted. Accordingly, operating profit was at | 5336 crore, up 23% YoY. Provisions remain elevated at | 4209 crore led by higher fresh slippages leading to PAT of | 737 crore vs. our estimate of | 933 crore. Asset quality continued to remain steady QoQ with GNPA & NNPA ratio at 10.25% & 3.91%, respectively. Absolute GNPA was at | 69969 crore, flat...

While asset quality deteriorated marginally with GNPA ratio increasing ~26 bps QoQ to 10.28%, GNPA, on absolute basis, remained stable at | 69714 crore on the back of a reduction largely equal to slippages. Slippages were at | 5583 crore, down 15% QoQ. Post higher provisioning for legacy stress, provisions on NPA declined 11% YoY & 70%QoQ. Accordingly, provision coverage continue to remain stable at 77.34%. Exposure in accounts under NCLT 1 and NCLT 2 were at | 5820 crore and | 6957 crore with healthy coverage at 97.42% and 84.86%, respectively....