Asset quality is likely to improve sequentially with gross non-performing assets as well as net NPA falling from 10.3 percent and 4 percent in Q1FY20 respectively.
Net Interest Income (NII) is expected to increase by 51.1 percent Y-o-Y (up 4.4 percent Q-o-Q) to Rs. 6,787 crore, according to ICICI Direct.
While having a buy call on the stock, Jefferies said the bank reported decent pre-provision operating profit and NIM/NII & Fee were a beat offset by elevated costs, though asset quality disappointed in Q1.
Net Interest Income (NII) is expected to increase by 55 percent Y-o-Y (up 34 percent Q-o-Q) to Rs. 6,770.3 crore, according to Kotak.
Kotak Institutional Equities projects bank's net profit at Rs 1,455.9 crore, up 208.9 percent QoQ
NBFCs had a marginally better quarter than Q3 as liquidity eased for retail players. Slowdown in auto sales and increase in incremental cost of funding will weigh on Q4 performance
Net Interest Income (NII) is expected to increase by 22.7 percent Y-o-Y (up 3.5 percent Q-o-Q) to Rs. 4,909.7 crore, according to Motilal Oswal.
Net Interest Income (NII) is expected to increase by 23.2 percent Y-o-Y (up 3.9 percent Q-o-Q) to Rs. 4,929.4 crore, according to Kotak.
Net Interest Income (NII) is expected to increase by 5.3 percent Y-o-Y (up 3 percent Q-o-Q) to Rs. 4,627.2 crore, according to Sharekhan.
Motilal Oswal expects Bank of Baroda's slippages to be moderate but remain at elevated levels (4.8 percent annualised)
The public sector bank reported a 160 percent jump in net profit to Rs 528.3 crore for the quarter ended June, beating analyst estimates. In the same quarter last year, profit was Rs 203.4 crore.
As per a Motilal Oswal report, the net profit is likely to drop by 32 percent to Rs 138 crore from Rs 203 crore in June quarter ending 2017
Global brokerages observed that the bank had a soft quarter, but see profitability increasing ahead. Having said that, they have collectively reduced their target prices on the stock, with a downside of up to 14 percent.
Worsening asset quality continues to haunt Bank of Baroda in the third quarter due to elevated slippages. In an interview with CNBC-TV18, PS Jayakumar, Managing Director & CEO of Bank of Baroda spoke about the results and his outlook for the company.
State Bank of India has reported a net loss of Rs 2,416 crore this quarter. In an interview with CNBC-TV18, Rajnish Kumar, Chairman of State Bank of India spoke about the results and his outlook for the company.
Analysts said if slippages come below Rs 3,500 crore (against Rs 3,451 crore in Q2FY18), gross non-performing assets improve (from 11.16 percent), and domestic net interest margin above 2.65 percent (2.68 percent) then that would be taken positively by the Street.
Bank of Baroda has strong operating trends and has been staying ahead of peers, UBS said while maintaining a buy call on the stock with increased target price at Rs 230 from Rs 220 per share.
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.
Stressed assets continue to haunt Bank of Baroda with slippages coming in at the highest levels in the last four quarters. In an interview to CNBC-TV18, PS Jayakumar, MD & CEO of Bank of Baroda spoke about the results and his outlook for the company.
Bank of Baroda's total stressed assets increased from 10.8 percent to 11.7 percent sequentially. Net interest income was up 1 percent YoY and profit tanked 52 percent to Rs 203.4 crore in Q1.
Slippages and operating profit growth will be key factors to watch out for. Slippages from restructured book will be seen closely.
Vishal Goyal, Executive Director-Leading Banks and Financial Research at UBS India shared his outlook on what could unfold in the Q1 results for the banking universe.
Global and domestic brokerages have a buy or neutral call on the stock on the back of stable numbers as well as better asset quality.
The bank expects retail loan book to grow at 20 percent and corporate loan book to growth at over 18 percent in FY18, said PS Jayakumar, MD & CEO, Bank of Baroda.
Some of the top public sector banks declared their quarterly results last week and senior analyst MB Mahesh of Kotak Institutional Equities says there have not been any major negative surprises. The results were in-line for some banks and better-than- expected for others, he says.