Bank of Baroda's fourth quarter profit is seen falling 22.6 percent year-on-year to Rs 896 crore due to higher provisions, according to the average of estimates of analysts polled by CNBC-TV18. However, the bottomline may show sequential rise because Q3 was impacted by a one-off tax related item besides provisions.
In Q3FY15, profit fell 68 percent Y-o-Y to Rs 334 crore and provisions spiked 65.6 percent. The quarter also saw the Dubai Tax Authority levy of Rs 410 crore as additional tax on the bank.
Net interest income, the difference between interest earned and interest expended, may grow by 7.1 percent to Rs 3,346.5 crore in January-March quarter compared to Rs 3,124.3 crore in the year-ago period.
Analysts feel the asset quality pressure may continue in Q4. The management stated (post third quarter earnings) that asset quality will remain under pressure till April-September period of FY16.
In Q3, slippages were Rs 3,000 crore, the highest since FY10. If asset quality may come as high as Q3 (net NPA at 2.11 percent against 1.74 percent Q-o-Q)) then it may be disappointing.
Net interest margin is expected to moderate on sequential basis while loan growth is expected at multi-quarter lows of 6-8 percent in Q4FY15. Advances slowed to 11.7 percent in December quarter.
Other income (non-interest income) could come off year-on-year due to higher base and muted fee income growth. In Q3, other income rose by 17 percent to Rs 1,090.35 crore led mainly by trading gains that jumped 91.7 percent.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
