Sharekhan's research report on Bank of Baroda
BOB reported healthy loan growth of 10% y-o-y/6% q-o-q versus 4% y-o-y in the past quarter, led by strong growth in retail (17% y-o-y), agri book (10% y-o-y), and overseas book (21%). Core operating profit grew by 57%y-o-y/ 10% q-o-q due to higher net interest income, fee income, and contained opex. NII grew by 21% y-o-y/1% q-o-q, led by higher loan growth. NIM fell 5 bps q-o-q to 3.08%. Core fee income grew by 6% y-o-y/19% q-o-q. Asset quality improved sharply with GNPA and NNPA ratios falling by 64 bps/53 bps q-o-q to 6.60%/1.72%. PCR improved 468 bps q-o-q to 75%.
Outlook
We maintain Buy with an unchanged PT of Rs. 128.
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Read More