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Brokerages expect Bank of Baroda to post massive jump in Q4 profit

Kotak Institutional Equities projects bank's net profit at Rs 1,455.9 crore, up 208.9 percent QoQ

May 22, 2019 / 09:50 IST
     
     
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    Bank of Baroda is scheduled to post its March quarter earnings on May 22, 2019.

    Research and broking firm Motilal Oswal expects Bank of Baroda to report net profit at Rs 656.7 crore, up 39.4 percent QoQ. Net Interest Income (NII) is expected to increase 22.7 percent YoY (+3.5 percent QoQ) to Rs 4,909.7 crore.

    Motilal Oswal models 34.3 percent YoY rise (+1.2 percent QoQ) in Pre Provision Profit (PPP) to Rs 3,579.7 crore.

    Kotak Institutional Equities expects a massive jump in BoB's profit. It projects bank's net profit at Rs 1,455.9 crore, up 208.9 percent QoQ. NII is expected to increase 23.2 percent YoY (+3.9 percent QoQ) to Rs 4,929.4 crore while Pre Provision Profit (PPP) is likely to rise by 31 percent YoY (-1.3 percent QoQ) to Rs 3,491.3 crore, Kotak said.

    According to Narnolia Financial Advisors, NII growth is expected to be 21 percent YoY as loan growth will pick up during the quarter. NIM is expected to improve due to MCLR reset and lower interest reversal. Improvement in international business will also boost the NIM.

    The loan book of the bank is expected to grow 13 percent YoY led by strong growth in both retail loan and corporate loan, as per Narnolia. Slippage is expected to decline in Q4FY19.

    Key trackable this quarter

    -Management commentary on growth outlook of merged entity
    -Operating expenses

    Moneycontrol News
    first published: May 22, 2019 09:50 am

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