Moneycontrol
Nov 14, 2017 12:28 PM IST | Source: CNBC-TV18

Bank of Baroda Q2 profit seen down 17% to Rs 459 cr; slippages to be key

Analysts feel if slippages come below Rs 3,500 crore (against Rs 5,200 crore in Q1FY18), gross non-performing assets improve (11.4 percent in Q1) and net interest margin comes above 2.5 percent (2.48 percent) then that would be taken positively by the Street.

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Public sector lender Bank of Baroda's second quarter profit is expected to fall 16.8 percent to Rs 459.3 crore against Rs 552.1 crore in year-ago. It may be impacted by higher provisions due to ageing of non-performing assets.

Net interest income, the difference between interest earned and interest expended, may increase 2.7 percent year-on-year to Rs 3,519.6 crore in Q2, according to average of estimates of analysts polled by CNBC-TV18.

Key things to watch

Analysts feel if slippages come below Rs 3,500 crore (against Rs 5,200 crore in Q1FY18), gross non-performing assets improve (11.4 percent in Q1) and net interest margin comes above 2.5 percent (2.48 percent) then that would be taken positively by the Street.

Low cost deposit flow is expected to remain strong aiding in controlling the cost of funds.

Slippages, operating profit growth (i.e. operating profit growth ex-treasury), and exposure to NCLT cases & provisions thereof will be closely watched.
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