Public sector lender Bank of Baroda is expected to report a 5.6 percent growth in profit at Rs 1,233 crore for the September quarter compared to Rs 1,168 crore in same quarter last year, according to the average of estimates of analysts polled by CNBC-TV18.
Profit may be supported by higher non-interest income and low base in Q2FY14. In September quarter of 2013, profit declined 10 percent.
Analysts will closely watch bank's bottomline performance as June quarter saw profit bouncing back after seven consecutive quarters of subdued growth with 10 basis points' improvement in net interest margin.
Net interest income may rise 16 percent to Rs 3,360 crore in the quarter ended September 2014 compared to Rs 2,895 crore in corresponding quarter of last fiscal.
Asset quality is expected to be still under pressure but could be negated by higher recoveries and upgrades. After Q1 earnings, the management had guided for a restructuring pipeline of Rs 1,000 crore in Q2FY15 (as against Rs 98 crore in Q1FY15).
Analysts expect slippages to be similar or higher than Q1. Slippages in Q1FY15 jumped 45 percent sequentially to Rs 1,881 crore.
They expect above industry loan growth that is estimated at 17 percent during the quarter as against 18.8 percent in Q1FY15.
Non-interest income is expected to show 15-17 percent growth led by fee income growth of 8 percent.
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