Bank of Baroda Q1 preview: Net profit may rise 86.5% YoY to Rs 4,044.3 crore

Bank of Baroda, India's leading public sector bank's net profit is seen rising 86.5 percent YoY to Rs 4044.3 crore according to an average of two brokerage estimates conducted by Moneycontrol. The prominent public sector lender is all set to report its Q1 numbers on August 5.

Nirmal Bang expects Bank of Baroda to report a net profit of Rs 4,469.2 crore, up 106.1 percent year-on-year (down 6.4 percent quarter-on-quarter). Net Interest Income (NII) is expected to increase by 32 percent Y-o-Y (up 1.3 percent Q-o-Q) to Rs 11,670.3 crore, according to Nirmal Bang. Pre-Provision Operating Profit (PPOP) is likely to rise by 60.1 percent Y-o-Y (down 10.2 percent Q-o-Q) to Rs 7,249.8 crore.

Brokerage firm Kotak Institutional Equities expects Bank of Baroda to report a net profit of Rs 3,619.4 crore, up 66.9 percent year-on-year (down 24.2 percent quarter-on-quarter). Net Interest Income (NII) is expected to increase by 27.9 percent Y-o-Y (down 1.9 percent Q-o-Q) to Rs 11,305.8 crore, according to Kotak Equities. Pre-Provision Operating Profit (PPOP) is likely to rise by 46.6 percent Y-o-Y (down 17.8 percent Q-o-Q) to Rs 6,637.3 crore.

In the research note, Kotak Institutional Equities stated, “We expect solid operating profit growth of around 45 percent YoY led by strong revenue growth. Base quarter of 1QFY23 had higher treasury loss. We are building NIM to decline 10 bps QoQ. We expect loan growth to be solid at 18% YoY leading to ~30% YoY NII growth.”