Earnings Alerts

Bank Of Baroda (BOB) Earnings: Q1 Net Income Falls Short of Estimates Amid Mixed Financial Performance

  • Net Income: 44.6 billion rupees, a 9.6% year-on-year increase, but missed the estimate of 45.46 billion rupees.
  • Gross Non-Performing Assets: Improved to 2.88% from 2.92% quarter-on-quarter, but higher than the estimated 2.75%.
  • Amount of Gross Non-Performing Assets: Decreased by 3% quarter-on-quarter to 308.7 billion rupees, better than the estimated 312.67 billion rupees.
  • Provisions: Decreased by 22% quarter-on-quarter to 10.1 billion rupees, significantly lower than the estimated 17.87 billion rupees.
  • Operating Profit: 71.6 billion rupees, an 8.5% year-on-year decline, missing the estimate of 78.01 billion rupees.
  • Interest Income: 296.3 billion rupees, a 12% year-on-year increase, but below the estimated 308.66 billion rupees.
  • Interest Expense: Increased by 16% year-on-year to 180.3 billion rupees, slightly better than the estimate of 189.76 billion rupees.
  • Other Income: Declined by 25% year-on-year to 24.9 billion rupees.
  • Net Interest Income: 116 billion rupees, a 5.5% year-on-year increase, but missed the estimate of 119.21 billion rupees.
  • Coverage Ratio for Non-Performing Loans: Remained stable at 93.3% quarter-on-quarter.
  • Capital Adequacy Ratio: Improved to 16.8% from 16.3% quarter-on-quarter.
  • Analyst Recommendations: 27 buys, 8 holds, and 1 sell rating.

Bank Of Baroda on Smartkarma

Analyst Coverage on Bank of Baroda on Smartkarma

On Smartkarma, independent analyst Victor Galliano recently shared insights on Bank of Baroda in a research report titled “Indian Banks Screener: Bank of Baroda Remains the Value Pick, HDFC Bank Is the Quality Name.” Galliano remains bullish on Bank of Baroda, deeming it as the top pick due to its modest valuations, healthy Return on Equity (ROE), and improving returns. Additionally, he highlights HDFC Bank as a buy opportunity with potential for medium-term return gains.

Despite Bank of Baroda’s strong share performance, Galliano maintains its status as a value investment given its modest valuations, robust ROE, and positive trends in delinquency metrics. In contrast, State Bank of India receives a negative outlook due to delinquency risks, low core capital ratio, and limited progress on returns. The report provides valuable insights for investors looking to navigate the Indian banking sector and make informed investment decisions.


A look at Bank Of Baroda Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth5
Resilience2
Momentum2
OVERALL SMART SCORE3.8

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 has received impressive Smart Scores across the board, with top marks in Value, Dividend, and Growth. This indicates a positive long-term outlook for the company, reflecting strong intrinsic value, attractive dividend payouts, and promising growth potential. However, the scores for Resilience and Momentum are lower, suggesting some room for improvement in terms of stability and market momentum. Overall, the combination of high scores in key areas bodes well for Bank of Baroda’s future performance in the banking sector.

Bank of Baroda, a leading commercial bank in India, offers a wide range of traditional banking services such as CDs, credit cards, car loans, as well as innovative offerings like gold banking and insurance services. The group also has a presence in international markets through its subsidiary, IBU International Finance Limited in Hong Kong. With strong Smart Scores in Value, Dividend, and Growth, Bank of Baroda appears well-positioned to capitalize on its diverse portfolio and expand its market presence over 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.
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