Buy Bank of Baroda; target of Rs 239: LKP Research

LKP Research is bullish on Bank of Baroda has recommended buy rating on the stock with a target price of Rs 239 in its research report dated August 10, 2023.

Broker Research

August 14, 2023 / 20:05 IST

Buy

26 Aug, 2025 12:21

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LKP Research's research report on Bank of Baroda

In 1QFY24, Bank of Baroda (BOB) has delivered an expected result on operating and asset quality front. The fresh slippages were slightly higher at ₹24.5bn v/s ₹22.4bn in 4QFY23. Furthermore, the reduction (up-gradation & recovery) stood ₹47bn v/s ₹78bn in the previous quarter. It reported GNPA (3.51% v/s 4.79% in 4QFY23) and NNPA (0.78% v/s 0.89% in 4QFY23) declined substantially along with higher PCR (incl. TWO) of 93%. The bank has witnessed robust growth in net advances (20.5% YoY, 2.4% QoQ) and deposit growth (16.2% YoY, flat sequentially) with better liquidity position (LCR of 143.6% +). Moreover the bank has reported net profit of ₹40.7bn on the back of higher loan loss provision (₹16.9bn v/s ₹3.2bn in the previous quarter). SMA1/2 pool reduced sequentially to ~29bps.

Outlook

We believe the inexpensive valuation (P/ABVPS: 1.0x) makes BOB lucrative. Thus reiterate BUY with target price of ₹239.

For all recommendations report, click here