MOSL: BANK OF BARODA (Buy)-PBT in line, but slippages trajectory elevated
Bank of Baroda: PBT in line, but slippages trajectory elevated
(BOB IN, Mkt Cap USD5.1b, CMP INR94, TP INR120, 28% Upside, Buy)
BOB reported PAT of INR7.3b (our estimate: loss of INR12b) as the bank continued with the existing tax regime and thus no adjustments were required in DTA. Other income was supported by higher treasury gains of INR9.4b. PBT stood at INR11.3b (in line). For 1HFY20, PPoP grew 13.8% YoY to INR96.1b, whereas PAT stood at INR14.5b versus INR1b in 1HFY19.
- NII increased 10% YoY (+8.2% QoQ) to INR70.3b. Global NIM expanded 20bp QoQ to 2.8%, while domestic NIM too improved by 20bp QoQ to 2.95%. PPoP increased 23% YoY to INR53.3b (our estimate: INR45.9b).
- Loan book growth was muted at 3% YoY (+0.7% QoQ) to INR6.4t. Retail loan growth remained strong at 16.2%. Within retail, home/auto loans grew at 13%/33% YoY. Total deposits increased 2% YoY to INR8.9t, taking the domestic CD ratio to 68%. Domestic CASA grew 7.5% YoY, resulting in an increase in the CASA ratio to 37.9%.
Bank of Baroda is engaged in providing various services, such as personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services. The Bank's segments include Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Operations. The Bank offers personal banking services, such as deposits, loans, mobile banking and wealth management services; business banking services, such as Baroda Money Express, debit cards and collection services; corporate banking services, such as appraisal and merchant banking, and cash management and remittances; international banking services, such as export, import and trade finance, and correspondent banking; rural banking services, such as deposits, priority sector advances, financial inclusion and lockers, and treasury services, such as domestic and forex operations. The Bank operates a network of approximately 5,330 branches.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.