- Bank of Baroda’s net income for 4Q was at 48.9 billion rupees, beating estimates and experiencing a y/y increase of 2.3%.
- Gross non-performing assets reduced slightly from 3.08% to 2.92%, in line with estimates.
- Amount of gross non-performing assets decreased q/q by 1.5% reaching 318.3 billion rupees, slightly lower than the 320.17 billion rupees estimated.
- Provisions soared to 13 billion rupees, a significant q/q increase of 95%, although this was less than the estimated 16.18 billion rupees.
- The Bank’s operating profit slightly rose by 0.5% y/y to 81.1 billion rupees, again exceeding estimates.
- Interest income stood at 295.8 billion rupees, a 14% y/y growth. This, however, was lower than the estimated 300.73 billion rupees.
- Interest expense increased considerably, 24% y/y, to 177.9 billion rupees, albeit it was lower than the estimate of 184.79 billion rupees.
- Other income went up 21% y/y to 41.9 billion rupees.
- Net interest margin was recorded at 3.27%, a dip from 3.53% y/y but higher than the 3.12% forecast.
- Net interest income was 117.9 billion rupees, a slight y/y increase of 2.3% and slightly above the estimated 116.03 billion rupees.
- The coverage ratio for non-performing loans remained almost steady at 93.3% versus 93.4% q/q.
- Dividend per share was announced to be 7.60 rupees.
- The bank was rated as a “buy” by 26, a “hold” by 8, and a “sell” by 1.
Bank Of Baroda on Smartkarma
Analysts on Smartkarma have been actively covering Bank of Baroda, providing valuable insights for investors. According to Victor Galliano, Bank of Baroda stands out as the top pick with modest valuations, healthy ROE, and improving returns. Despite its strong share performance, the analyst sees further potential in the bank. Additionally, HDFC Bank is recommended as a buy, offering medium-term return gains post-merger. On the other hand, State Bank of India remains a negative sentiment due to delinquency risks and limited progress on returns.
Raj S, CA, CFA, also highlights Bank of Baroda as a strong value bet among Indian banks, praising its strong earnings profile and improving asset quality. The bank is positioned favorably for future growth, with a focus on diversifying the loan book towards retail and enhancing efficiencies. Despite recent gains, Bank of Baroda is still considered cheap with the potential for a re-rating in the near term. These analysts’ insights provide a comprehensive outlook on Bank of Baroda’s prospects in the market.
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, a leading commercial bank in India, is poised for a strong long-term outlook according to Smartkarma Smart Scores. With top marks in Value, Dividend, and Growth, the bank demonstrates solid financial health and potential for sustained performance. While scoring slightly lower in Resilience and Momentum, the overall outlook remains positive for Bank of Baroda.
Bank of Baroda offers a comprehensive range of traditional banking services, including CDs, credit cards, car loans, and insurance services. The Group’s ownership of IBU International Finance Limited in Hong Kong further enhances its international presence. With standout scores in key areas, Bank of Baroda stands as a promising option for investors seeking stability and growth in the banking sector.
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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