BOB reported a healthy 1QFY23 as core PPOP grew 11% YoY, while lower provisions drove net earnings (a significant beat). Business growth was healthy, with loans growing 3% QoQ. However, margin moderated by 6bp QoQ. Asset quality improved as fresh slippages moderated to INR32.7b, resulting in a significant decline in credit cost, with PCR increasing further to ~76%. Total SMA 1/2 (over INR50m) stands controlled at 48bp of loans. Collection efficiency (excluding Agri) improved to 98% in Jun’22....
The general evaluation of BANK OF BARODA (IN), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 3 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 11, 2022, the closing price ...
BANK OF BARODA: NII growth recovers sharply; collection efficiency stable QoQ (BOB IN, Mkt Cap USD5.7b, CMP INR81, TP INR100, 23% Upside, Upgrade to Buy) Bank of Baroda (BOB) reported a strong earnings performance, supported by a healthy core operating performance, despite sluggish business trends. Domestic NIM improved sharply by 39bp QoQ to 3.12%. Asset quality trends were stable sequentially in a challenging environment, with fresh slippage at INR51.3b (annualized slippage rate of 3.1...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Q3FY20 result highlights BoB reported a PBT loss of Rs22bn and net loss of Rs14.1bn versus PAT of Rs4.4bn yoy and Rs7.4bn qoq. The consensus estimate for PAT was Rs6.8bn for 3Q. The loss was mainly on account of a sharp increase in credit cost and partly on account of weak loan growth. Slippage of Rs118bn is uncomfortably high compared to Rs72.6bn qoq and expectation of 68bn. Breakdown of slippage in exhibit 2. Slippage ratio rose from an already high 4.7% to 7.4% qoq. Total corporate slippa...
Bank of Baroda: PPoP in line adjusted for one-offs; Slippages remain elevated (BOB IN, Mkt Cap USD6.2b, CMP INR96, TP INR115, 20% Upside, Buy) Business growth remains muted; Asset quality deteriorates further BOB reported a weak 3QFY20, led by higher provisions and elevated slippages as it addressed the RBI divergence and recognized select large corporate accounts as NPLs (including DHFL). Muted business growth and one-offs in opex further drove 3QFY20 loss to INR14.1b. We have cut FY...
Q2FY20 result highlights BoB reported PAT of Rs7.3bn in 1Q20 growing 396% yoy and 4% qoq. PAT was better than our estimate of Rs5bn led by higher treasury gains. We view this as a soft result with slippage and watch list remaining elevated, a sequential increase in SMA2 loans, a very high share of treasury gains and weak loan growth. NIM improvement was the key positive highlight. Total slippage of Rs72bn was higher than Rs65bn qoq. Fresh slippage was Rs60bn (56bn qoq) while addition to exis...
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 ...
Q1FY20 result highlights BoB (consolidated for Dena and Vijaya) reported PAT of Rs7.1bn in 1Q20 versus loss in 1Q19 and 4Q19. There were fears of a big bad debt provision on Vijaya and Dena loans which did not happen. Rather bad loan provisions declined substantially. Credit cost declined from 8% to 2% qoq. The performance of the consolidated entity was weaker than standalone on all key operating parameters. Consolidated domestic loans grew 5% yoy, a deceleration over 13% for standalone in 4...
Q1FY20 result highlights BoB (consolidated for Dena and Vijaya) reported PAT of Rs7.1bn in 1Q20 versus loss in 1Q19 and 4Q19. There were fears of a big bad debt provision on Vijaya and Dena loans which did not happen. Rather bad loan provisions declined substantially. Credit cost declined from 8% to 2% qoq. The performance of the consolidated entity was weaker than standalone on all key operating parameters. Consolidated domestic loans grew 5% yoy, a deceleration over 13% for standalone in 4...
BANK OF BARODA: Earnings in line; Asset quality to recover only gradually (BOB IN, Mkt Cap USD6.1b, CMP INR110, TP INR145, 32% Upside, Buy) by lower provisions and treasury gains of INR3.4b (+124% YoY). NII increased 3% YoY to INR64.9b (4.3% QoQ decline) affected by slower domestic loan growth. Global NIMs declined 13bp QoQ to 2.62% while domestic NIMs declined 5bp QoQ to 2.73% from 2.78% (adj. for one-off IT refund) in 4QFY19. Domestic loan growth stood at 5.2% YoY (3.6% QoQ decline) to ...
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, N...
Q4FY19 result highlights BoB reported a loss of Rs9.9bn versus PAT of Rs4.7bn qoq and loss of Rs31bn yoy. While PPOP was strong and in line, provisions were much higher than expected due to ageing and accelerated provisions on Videocon/Aircel/RCom. Core PPOP grew strongly at 38% yoy and 9% qoq. Domestic loans grew 13% yoy while total loans grew 9% yoy pulled down by declining buyers’ credit. Within domestic loans, retail loans grew strongly at 24% yoy and 6% qoq. NIM improved substantially ...
Bank of Baroda: Strong operating performance; asset quality improves sharply (BOB IN, Mkt Cap USD6.2b, CMP INR126, TP INR150, 19% Upside, Buy) BOB reported a loss of INR9.9b, dragged by higher provisions of INR54b, as the bank accelerated provisions toward a few large stressed accounts like Videocon, RCom etc. For FY19, PPoP grew 12% to INR135b, while PAT declined to INR4.3b owing to higher provisions (credit cost of ~2.7%). NII increased 27% YoY to INR50.7b in the quarter, led by healt...
Q3FY19 result highlights BoB announced a strong quarter with consistently strong loan growth, qoq NIM expansion, decline in NPLs and the highest provisioning cover among the corporate banks we cover. The bank recognized Rs11.7bn of its total exposure of Rs45bn to ILFS as non-performing. Net loans grew 12% yoy and 3% qoq. Gross loans grew 16% yoy and 3% qoq. Domestic loan growth was strong at 21% yoy and 4% qoq driven by strong growth in retail that grew 18% yoy and 6% qoq. Home loans grew 34...
Bank of Baroda: Operating performance in line; One-off slippages impact earnings (BOB IN, Mkt Cap USD4.2b, CMP INR114, TP INR140, 23% Upside, Buy) BoB’s 3QFY19 PAT came in much lower than estimate at INR4.7b (est. INR9.3b) largely due to higher provision for NPAs at INR34.2b. BOB’s front-ended provisions of INR9.2b are in excess of IRAC norms. PPoP stood flat at INR35.4b on 3% YoY decline in other income and 17% YoY growth in employee expense due to higher depreciation of INR2.1b and pro...
Bank of Baroda: Share swap ratios announced for merger with Dena, Vijaya Bank; Deal favorable for BOB shareholders (BOB IN, Mkt Cap USD4.4b, CMP INR119, TP INR140, 17% Upside, Buy) Bank of Baroda's (BOB) board has approved the merger with Dena Bank and Vijaya Bank with the following share swap ratios: (a) 402 equity shares of BOB for every 1,000 equity shares of Vijaya Bank and (b) 110 equity shares of BOB for every 1,000 equity shares of Dena Bank. We believe that the share swap ratios ...
Q2FY19 result highlights 2Q19 was a very strong quarter for BoB with strong loan growth, stable qoq margins even without any lumpy NCLT recovery, substantial decline in slippages and increase in provisioning cover. More importantly the bank has provided for IL&FS. BoB has Rs45bn exposure to IL&FS. They have provided Rs2.4bn as 20% provisioning mainly towards their exposure to the parent holding company which is at the biggest risk among all IL&FS group companies of slipping in 3Q. PAT of Rs4....
Bank of Baroda: Revenue in-line; lower provisions drive earnings (BOB IN, Mkt Cap USD4b, CMP INR111, TP INR140, 26% Upside, Buy) BoB reported PAT of INR4.3b in 2QFY19, primarily led by NII growth of 20.7% to INR44.9b, fee income growth of 14.3%, and lower NPA provisions. PPoP grew by just 1.3% YoY to INR30.8b, majorly due to a 22% decline in other income to INR13.5b. Global NIM came in at 2.6% for 2QFY19, mainly supported by an improvement in international NIM to 1.7% (from 1.2% a year ...
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