- Bank of Baroda’s 3Q net income was 45.8 billion rupees, a year-on-year increase of 19% and above the estimate of 41.27 billion rupees.
- The bank’s gross non-performing assets (NPAs) stood at 3.08%, lower than both the previous quarter’s 3.32% and the estimated 3.2%.
- The amount of gross NPAs was 323.2 billion rupees, a quarterly decrease of 4.9% and below the estimated 346.34 billion rupees.
- Provisions made by the bank were 6.66 billion rupees, a significant quarterly decrease of 69% and much lower than the estimated 22.62 billion rupees.
- Operating profit for the bank was 70.15 billion rupees, a year-on-year decrease of 15% and below the estimate of 78.1 billion rupees.
- Interest income for the quarter was 286.1 billion rupees, a year-on-year increase of 22% but slightly lower than the estimated 293.88 billion rupees.
- Interest expense for the period was 175.0 billion rupees, a year-on-year increase of 38% but lower than the estimated 181.08 billion rupees.
- The bank’s other income was 28.1 billion rupees, a year-on-year decrease of 21%.
- Net interest margin was 3.1%, lower than the previous year’s 3.37% but higher than the estimated 3.01%.
- Net interest income was 111.01 billion rupees, a year-on-year increase of 2.6% but slightly lower than the estimated 112.99 billion rupees.
- The coverage ratio for non-performing loans was 93.4%, slightly higher than the previous quarter’s 93.2%.
- The bank’s capital adequacy ratio was 14.7%, lower than the previous quarter’s 15.3%.
- The slippage ratio for the third quarter was 0.95%, lower than the 1.05% from the same period a year ago.
- Shares in Bank of Baroda rose 2.7% to 243.75 rupees on trading of 26.8 million shares.
- The bank’s performance was rated as ‘buy’ by 23 analysts, ‘hold’ by 10, and ‘sell’ by 2.
Bank Of Baroda on Smartkarma
Bank of Baroda (BOB IN) is a company that has caught the attention of independent analysts on Smartkarma, an investment research network. According to Raj Saya, CA, CFA, BOB is a great value pick among Indian banks due to its strong earnings profile and improving asset quality. The bank has become the second-best PSU bank in India after SBIN, and is expected to continue its growth with a medium-term ROE forecast of 16% to 18%. Despite recent market rallies, BOB’s P/BV ratio is still cheap at 0.9x FY25e, making it a potential re-rating candidate in the near future.
Victor Galliano, another independent analyst on Smartkarma, also has positive sentiments towards Bank of Baroda. He believes that BOB is the top value pick among Indian banks, with modest valuations, healthy ROE, and improving pre- and post-provision returns. On the other hand, Galliano also recommends HDFC Bank as a high-quality bank pick, with a strong balance sheet and potential for improved returns from a merger. While Axis Bank remains a name to watch, Galliano is cautious about State Bank of India and ICICI Bank due to their valuations and risks. Overall, Bank of Baroda remains a stand-out value in the Indian banking sector.
A look at Bank Of Baroda Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 4.2 |
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, a leading commercial bank in India, is expected to have a positive long-term outlook according to the Smartkarma Smart Scores. With an overall score of 5 out of 5 for value, dividend, and growth, the company is well-positioned for future success. This is due to its strong performance in traditional banking services such as CD’s and credit cards, as well as its diverse offerings such as gold banking and insurance services. Additionally, the company’s ownership of IBU International Finance Limited in Hong Kong adds to its global presence and potential for growth.
While Bank of Baroda scores slightly lower in resilience and momentum with scores of 3 out of 5, the company’s overall outlook remains positive. This is due to its solid foundation in traditional banking services and its strong financial performance. As one of the top commercial banks in India, Bank of Baroda is well-positioned to continue its success and growth in the long-term.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
