Sharekhan's research report on Bank of Baroda
BOB reported healthy loan growth of 10% y-o-y/6% q-o-q versus 4% y-o-y in the past quarter, led by strong growth in retail (17% y-o-y), agri book (10% y-o-y), and overseas book (21%). Core operating profit grew by 57%y-o-y/ 10% q-o-q due to higher net interest income, fee income, and contained opex. NII grew by 21% y-o-y/1% q-o-q, led by higher loan growth. NIM fell 5 bps q-o-q to 3.08%. Core fee income grew by 6% y-o-y/19% q-o-q. Asset quality improved sharply with GNPA and NNPA ratios falling by 64 bps/53 bps q-o-q to 6.60%/1.72%. PCR improved 468 bps q-o-q to 75%.
We maintain Buy with an unchanged PT of Rs. 128.
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