Do you Own This PSU Bank Stock, Which Has Increased By 44% In A Year Amid A Weak Market?


Bank of Baroda Shares: In the past year, BoB stock has increased by 43.60%. Shares of Bank of Baroda were trading at Rs 82.45 on August 5, 2021. On the shares of the Bank of Baroda, experts remain optimistic. They predict that it will increase to Rs 147 in a year.


Due to a decrease in bad loan charges, the bank increased its net profit by 79.3% year over year (YoY) to Rs 2,168 crore in the quarter ended in June (Q1FY23).

During the same period last year, the Mumbai-based public sector lender reported a net profit of Rs 1,209 crore (Q1FY22). On Friday, the BSE saw the bank's stock close 0.81 percent lower at Rs 116.25 per share.


Its net interest income (NII), which was previously Rs 7,982 crore in Q1FY22, increased by 12% to Rs 8,838 crore in Q1FY23. Its net interest margin (NIM), which was 3.04 percent a year earlier, moderated to 3.02 percent in Q1FY23. Furthermore, it declined from 3.08 percent in March 2022.

As managing director and chief executive, Sanjiv Chadha stated that the bank anticipates increasing NIMs by 10 basis points in FY23.


From Rs, 2,863 crores in Q1FY22 to Rs 1,182 crores in Q1FY23, BoB's non-interest income decreased significantly. The increase in bond yields hurt its treasury revenues, which make up a sizable portion of other income. Mark-to-market (MTM) losses were recorded for the bond portfolio.

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With gross non-performing assets (GNPAs) down from 8.86% in the previous quarter to 6.26 percent through June 2022, the bank's asset quality profile has improved. Net NPAs also decreased from 3.03 percent in June 2021 to 1.58 percent in June 2022.


According to ICICI Securities analysts, credit costs will decrease after the NPA issue is resolved. "A solid offtake in the retail market along with a gradual improvement in the corporate book will increase the overall growth trajectory. While the quicker loan repricing in a scenario with rising rates helps the margin trajectory. We anticipate improved return ratios, which will help values, the brokerage firm said.

Emkay Global has a buy call with a target price of Rs 140 on Bank of Baroda. The Bank of Baroda is currently valued at Rs. 121.7 on the open market. The analyst's suggested time frame for the Bank of Baroda price to reach the specified target is one year.


Bob continues to have one of the highest CET-1 ratios among large PSBs, which means there is no risk of dilution. Our earnings forecasts for FY24/25E have been updated by 1%/3%, and the rollover TP has been increased to 0.7x June 24E ABV, resulting in a revision to the target price of Rs 140. (up from Rs130).

Founded in 1911, the Bank of Baroda is a banking organization (having a market cap of Rs 62,961.33 Crore).


For the quarter that ended on June 30, 2022, the company reported a Consolidated Total Income of Rs 21,576.76 crore, up 1.04 crore from the same quarter last year and down -3.98 crore from the previous quarter's Total Income of Rs 22,470.46 crore. In the most recent quarter, the bank posted a net profit after tax of Rs. 1939.56 Crore.


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