MOSL: BANK OF BARODA (Buy)-Reports merged financials-Balance sheet strengthens but concerns remain
BANK OF BARODA: Reports merged financials; Balance sheet strengthens but concerns remain
(BOB IN, Mkt Cap USD6.7b, CMP INR121, TP INR145, 20% Upside, Buy)
Bank of Baroda (BoB) has published its balance sheet as at 1st Apr’19, which reflects the impact of its merger with Vijaya Bank and Dena Bank. Key highlights:
- Dena Bank/Vijaya Bank reserves were written down by ~86%/~24% from 3QFY19 levels,
- CET-1 ratio of the combined entity has declined to 8.6% as against 10.4% for BoB in FY19,
- Net NPA ratio of the combined entity increased 32bp to ~3.7% from ~3.3% for BoB in FY19,
- Calculated PCR declined 167bp to ~66% for the merged entity while PCR (incl. tech w/off) stood healthy at ~78%.
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.
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