- Bank of Baroda’s net income for the third quarter reached 48.4 billion rupees, a 5.7% increase year-over-year, surpassing the estimated 44.6 billion rupees.
- The bank’s gross non-performing assets (NPA) ratio decreased slightly to 2.43% from the previous quarter’s 2.5%, although it was above the estimated 2.36%.
- The amount of gross non-performing assets declined by 0.3% quarter-over-quarter to 284.7 billion rupees, missing the estimate of 275.88 billion rupees.
- Provisions for the quarter fell significantly by 54% to 10.82 billion rupees against a higher estimated 18.08 billion rupees.
- Operating profit increased 9.2% year-over-year to reach 76.6 billion rupees, slightly below the estimate of 77.32 billion rupees.
- The bank reported interest income of 309.1 billion rupees, a growth of 8% year-over-year, but below the projected 315.52 billion rupees.
- Interest expense rose by 11% year-over-year to 194.9 billion rupees, slightly under the forecast of 196.06 billion rupees.
- Other income saw significant growth, increasing by 34% year-over-year to 37.7 billion rupees.
- Net interest income rose by 2.9% year-over-year to 114.2 billion rupees, but did not meet the estimated 119.99 billion rupees.
- The coverage ratio for non-performing loans remained steady at 93.5%, just below the previous quarter’s 93.6%.
- Capital adequacy ratio slightly decreased to 16% from 16.3% in the previous quarter.
- Analyst recommendations include 28 buy ratings, 7 hold ratings, and 1 sell rating.
Bank Of Baroda on Smartkarma
Analyst coverage of Bank Of Baroda on Smartkarma has been positive, as highlighted by Victor Galliano in their research reports. In the report “Indian Banks Screener: Stick with Buys on Select, Value Based Smaller Caps“, Galliano maintains a bullish stance on smaller cap Indian banks, including Baroda, Bandhan, and UBI. Despite challenges, Bandhan stands out for its value, while Baroda remains a favorite due to its performance. Negative sentiments are directed towards ICICI Bank and Kotak Mahindra due to valuation concerns and eroding returns.
In another report by Victor Galliano titled “Indian Banks Screener 1QFYE25: Positive Focus on Value Based Smaller Caps“, the focus remains on smaller cap, value-based Indian banks such as Bandhan, Baroda, and UBI. While UBI shows improved returns and is considered a value standout, Baroda continues to be favored for its profitability. ICICI Bank and Kotak Mahindra are viewed negatively due to declining returns and unsustainable credit costs, despite their attractive features. Overall, the analyst sentiment leans towards the optimism surrounding the select Indian banks mentioned.
A look at Bank Of Baroda Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Bank of Baroda holds a solid position for long-term investors based on a comprehensive analysis of its various aspects. With a top-notch score of 5 in Value, Dividend, and Growth categories, the company is deemed favorable for those eyeing robust returns. This indicates that Bank of Baroda offers good value for money, pays out attractive dividends, and demonstrates promising growth potential.
Despite scoring slightly lower in Resilience and Momentum with scores of 3 and 4 respectively, the overall outlook remains positive. The company, owning and operating commercial banks in India, provides an array of traditional banking services, including CDs, credit cards, car loans, gold banking, and diverse insurance services. Bank of Baroda also boasts ownership of an international banking entity in Hong Kong, further diversifying its operations and revenue streams.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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