Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Equity Bottom-Up

<ul>
<li>Our positive focus remains on three smaller cap Indian banks, namely Bandhan, Baroda and Union Bank of India (UBI); we stay negative on richly valued ICICI Bank and Kotak Mahindra</li>
<li>Bandhan has its NPL challenges, but its pre-provision returns have improved and it is a value stand-out; Baroda remains our favourite and UBI has delivered better profitability and credit quality</li>
<li>Kotak Mahindra is the peer group’s highest return bank post credit costs, but returns continue to erode; ICICI is on premium valuations and we expect credit costs to go higher</li>
</ul>


Our positive focus remains on three smaller cap Indian banks, namely Bandhan, Baroda and Union Bank of India (UBI); we stay negative on richly valued ICICI Bank and Kotak Mahindra
Bandhan has its NPL challenges, but its pre-provision returns have improved and it is a value stand-out; Baroda remains our favourite and UBI has delivered better profitability and credit quality
Kotak Mahindra is the peer group’s highest return bank post credit costs, but returns continue to erode; ICICI is on premium valuations and we expect credit costs to go higher


Indian Banks Screener: Stick with Buys on Select, Value Based Smaller Caps

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Asset Quality to remain stable: BoB has seen a slight inch-up in SMA1 and SMA2 levels during the quarter, mainly owing to 2 state PSU accounts.</li><li>However, the management does not expect any challenge on these accounts and expects them to pull-back and become standard at the earliest.</li><li>The management also indicated that BoB is not seeing any slippages from any state or central PSU. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Asset Quality to remain stable: BoB has seen a slight inch-up in SMA1 and SMA2 levels during the quarter, mainly owing to 2 state PSU accounts.However, the management does not expect any challenge on these accounts and expects them to pull-back and become standard at the earliest.The management also indicated that BoB is not seeing any slippages from any state or central PSU. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank of Baroda - Earnings Beat Led by One-Off, RoA Delivery of 1+% to Continue!

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Bank of Baroda (BOB) posted ~17% CAGR in loan growth over FY22-FY24 as it deployed excess liquidity on the balance sheet.</li><li>Its CD ratio, thus, increased ~600bp over the past two years to 80.3%.</li><li>With intense competition for deposits, we estimate BoB’s deposit growth to remain broadly in line with the system at ~11%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank of Baroda (BOB) posted ~17% CAGR in loan growth over FY22-FY24 as it deployed excess liquidity on the balance sheet.Its CD ratio, thus, increased ~600bp over the past two years to 80.3%.With intense competition for deposits, we estimate BoB’s deposit growth to remain broadly in line with the system at ~11%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank of Baroda - Asset Quality Steady; Remain Watchful on the Pace of Deposit Mobilization

<ul><li>Bank of Baroda (BoB) is the second-largest PSU bank in India and is focused on unlocking its value by improving its retail distribution network and leveraging digitization across the value chain.</li><li>BoB has a strong domestic presence of 8,200 branches and 11,401 ATMs and cash recyclers supported by self-service channels.</li><li>It also has a significant international presence with a network of 93 overseas branches in 17 countries.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Bank of Baroda (BoB) is the second-largest PSU bank in India and is focused on unlocking its value by improving its retail distribution network and leveraging digitization across the value chain.BoB has a strong domestic presence of 8,200 branches and 11,401 ATMs and cash recyclers supported by self-service channels.It also has a significant international presence with a network of 93 overseas branches in 17 countries.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Pick of the Week - Bank of Baroda Ltd. - 30 September 2024

<ul>
<li>Our positive focus remains on smaller cap Indian banks, with buys on value plays Bandhan, Baroda and UBI; we are negative on richly valued ICICI Bank and Kotak Mahindra</li>
<li>UBI shares have been poor performers, but its returns to 1QFYE25 have improved and it is a value stand-out; Baroda remains a favourite and Bandhan has delivered better profitability </li>
<li>Kotak Mahindra is the peer group’s highest return bank post credit costs, but returns are declining; ICICI also has attractive returns but we believe its credit costs are unsustainably low</li>
</ul>


Our positive focus remains on smaller cap Indian banks, with buys on value plays Bandhan, Baroda and UBI; we are negative on richly valued ICICI Bank and Kotak Mahindra
UBI shares have been poor performers, but its returns to 1QFYE25 have improved and it is a value stand-out; Baroda remains a favourite and Bandhan has delivered better profitability 
Kotak Mahindra is the peer group’s highest return bank post credit costs, but returns are declining; ICICI also has attractive returns but we believe its credit costs are unsustainably low


Indian Banks Screener 1QFYE25: Positive Focus on Value Based Smaller Caps

India

Bank of Baroda owns and operates commercial banks in India.  The Group's banks provide the traditional forms of banking services, including CD's, Credit Card services and a variety of car loans, in addition to gold banking and a range of insurance services.  The Group also owns IBU International Finance Limited, an international banking company in Hong Kong.

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Bank Of Baroda (BOB IN)

Indian Banks Screener: Stick with Buys on Select, Value Based Smaller Caps

We stick with our value relative to returns based calls on Indian banks. Positive on smaller caps Baroda, Bandhan, UBI; negative on ICICI Bank and...

Victor Galliano

Bank of Baroda - Earnings Beat Led by One-Off, RoA Delivery of 1+% to Continue!

Asset Quality to remain stable: BoB has seen a slight inch-up in SMA1 and SMA2 levels during the quarter, mainly owing to 2 state PSU accounts.

Axis Direct

Bank of Baroda - Asset Quality Steady; Remain Watchful on the Pace of Deposit Mobilization

Bank of Baroda (BOB) posted ~17% CAGR in loan growth over FY22-FY24 as it deployed excess liquidity on the balance sheet.

Motilal Oswal

Pick of the Week - Bank of Baroda Ltd. - 30 September 2024

Bank of Baroda (BoB) is the second-largest PSU bank in India and is focused on unlocking its value by improving its retail distribution network and...

Axis Direct

Indian Banks Screener 1QFYE25: Positive Focus on Value Based Smaller Caps

Positive focus on smaller cap, value based Indian banks Bandhan, Baroda, and UBI; negative on richly valued ICICI Bank and Kotak Mahindra due to...

Victor Galliano

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Indian Banks Screener: Stick with Buys on Select, Value Based Smaller Caps

​We stick with our value relative to returns based calls on Indian banks. Positive on smaller caps Baroda, Bandhan, UBI; negative on ICICI Bank and...

Victor Galliano

Bank of Baroda - Earnings Beat Led by One-Off, RoA Delivery of 1+% to Continue!

Asset Quality to remain stable: BoB has seen a slight inch-up in SMA1 and SMA2 levels during the quarter, mainly owing to 2 state PSU accounts.

Axis Direct

Bank of Baroda - Asset Quality Steady; Remain Watchful on the Pace of Deposit Mobilization

Bank of Baroda (BOB) posted ~17% CAGR in loan growth over FY22-FY24 as it deployed excess liquidity on the balance sheet.

Motilal Oswal

Pick of the Week - Bank of Baroda Ltd. - 30 September 2024

Bank of Baroda (BoB) is the second-largest PSU bank in India and is focused on unlocking its value by improving its retail distribution network and...

Axis Direct

Indian Banks Screener 1QFYE25: Positive Focus on Value Based Smaller Caps

​Positive focus on smaller cap, value based Indian banks Bandhan, Baroda, and UBI; negative on richly valued ICICI Bank and Kotak Mahindra due to...

Victor Galliano

We stick with our value relative to returns based calls on Indian banks. Positive on smaller caps Baroda, Bandhan, UBI; negative on ICICI Bank and...

Positive focus on smaller cap, value based Indian banks Bandhan, Baroda, and UBI; negative on richly valued ICICI Bank and Kotak Mahindra due to...