Motilal Oswal's research report on Bank of Baroda
Bank of Baroda (BOB) reported a mixed quarter as PAT jumped 88% YoY (in line) aided by higher other income while NIMs declined 26bp QoQ. Business growth was modest with loans growing 21% YoY (2% QoQ) while deposits rose 16% YoY (flat QoQ) . Asset quality improved as slippages remained in control, which resulted in GNPA/NNPA ratio improving to 3.51%/0.78%. SMA 1/2 stands controlled at 29bp of loans, while restructured book moderated to 1.3% of loans.
Outlook
We largely maintain our earnings estimates and estimate FY25 RoA/RoE at 1.2%/16.9%. We value the stock at INR240 (based on 1.1x FY25E ABV). We reiterate our BUY rating on the stock.
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