Bank of Baroda Results: BOB Quarterly Results Q2 (2021-22) Date & Review | INDmoney

Bank of Baroda Results: BOB Quarterly Results Q2 (2021-22) Date & Review | INDmoney

Last updated: 11 Nov, 2021 | 08:54 am

Bank of Baroda Results: BOB Quarterly Results Q2 (2021-22) Date & Review | INDmoney

Higher profits - Bank of Baroda has reported a 24% jump in consolidated net profit to Rs 2,087.85 crore in Jul-Sep 21 period, beating street estimates. The bank had posted a net profit of Rs 1678.6 crore in the year-ago period. High profits were supported by lower provisions and higher other income.

Tepid rise in NII: A bank’s primary business is to borrow money and lend the same at a rate higher than the rate at which they borrowed. The income generated from this differential is known as net interest income. Net interest income (NII) for the bank rose 2.11% on year to Rs 7,566 crore in the quarter ended September. Analysts had earlier estimated the NII to come in at Rs 7,950 crore. The NII last year for the same quarter was Rs 7,410 crore. The net interest margin (NIM) moderated by 22 basis points QoQ to 2.9%. 

Asset Quality stable: Bank of Baroda Gross Non Performing Assets (NPA) reduced to Rs 59,504 crore in Q2FY22. In Q2FY21, Gross NPA was Rs 65,698 crore. The Gross NPA ratio improved to 8.11% in the quarter ended September compared to 9.14% in the year-ago period. The Net NPA ratio increased to 2.83% in the September quarter compared to 2.51% in Q2FY21. The Provision Coverage Ratio (PCR) reported by the bank was 83.42%.

Deposits - Global Deposits grew marginally by 0.54% year-on-year at Rs 9.59 lakh crore. Domestic Deposits increased 3.43% and stood at Rs 8.64 lakh crore in Q2FY22. Bank reported domestic current account deposits at Rs 60,098 crore, a 15% growth year-on-year, and domestic savings bank deposits grew by 12% to Rs 3.15 lakh crore.

CASA - CASA capital is the cheapest source of capital for banks. The higher the number, the more profit a bank can earn. The current account and savings account deposits increased by 13.01% compared to last year's same period. 

Bank of Baroda results review

Bank of Baroda has reported a steady set of numbers in Jul-Sep 21 quarter, backed by a healthy rise in other income and lower provisions. However, the Net Interest Income has come in below street expectations. The NII was impacted by one-time write-offs. Asset quality too has remained stable during the quarter, despite the bank’s exposure to SREI Infra. 

Overall the business trends remain positive. The bank has reported a steady 4% QoQ rise in its advances, led by the Corporate and Retail book. The management expects the growth momentum to continue, led by the Retail segment, while the Corporate book continues to see a gradual recovery.

BoB results: Brokerage Action

Global brokerage firm CLSA has retained a ‘Buy’ call on the stock and has raised the target price to Rs 140 per share. The bank is a beneficiary of the corporate recovery cycle, noted CLSA. It expects credit costs to normalise to 120- 125 bps by FY23 and expect 10.8-11% RoE by FY23/24.

Credit Suisse has maintained an  “Outperform” call and raised the target price to Rs 120 from Rs 100 per share. The growth is picking up, with healthy asset quality outcomes, said the research house. Its CET is healthy at 11.4% and expects RoE to improve to more than 10% in the upcoming quarters. The brokerage has increased FY22E EPS estimate by 15% on lower provisions.

We are a SEBI registered investement advisor
Mutual Funds watchlist
aditya birla sun life flexi cap fund growth direct plan|ABSL low duration fund direct growth|axis bluechip fund direct growth|axis capital builder fund series 4|axis balanced advantage fund direct growth|axis equity saver fund direct growth|axis multicap fund direct growth|axis global innovation fund of fund direct growth|axis long term equity fund growth NAV|axis quant fund direct growth|axis small cap fund direct growth|axis value fund direct growth|baroda dynamic equity fund direct growth|BOI AXA bluechip fund|canara robeco flexi cap fund direct growth|canara robeco small cap fund direct growth|canara robeco value fund direct growth|DSP quant fund direct|franklin india smaller companies fund direct growth|HDFC arbitrage fund direct growth|HDFC balanced advantage fund direct growth|HDFC developed world index fund NAV|HDFC flexi cap fund direct growth|HDFC housing opportunities fund direct growth|HDFC hybrid equity fund direct growth|HDFC nifty 50 index fund|HDFC index fund sensex plan|HDFC mid cap opportunities direct plan growth|HDFC multi asset fund direct growth|HDFC small cap fund direct growth|HDFC top 100 fund direct growth|HSBC midcap fund direct growth|ICICI prudential balanced advantage fund|ICICI bluechip fund direct growth NAV|ICICI prudential commodities fund direct plan growth|ICICI nasdaq 100 fund direct growth|ICICI nifty next 50 index fund direct growth|ICICI small cap fund direct growth|ICICI prudential technology direct plan growth calculator|ICICI ultra short term fund direct growth|IDBI india top 100 equity fund direct growth|IDBI small cap fund direct growth|idfc us equity fund of fund direct growth|kotak short term fund direct growth|kotak emerging equity fund direct growth|kotak multicap fund direct growth|kotak global innovation fund of fund NAV|kotak gold fund direct growth|kotak savings fund direct growth|kotak small cap fund direct growth|L&T emerging businesses fund direct growth|mirae asset large cap fund direct growth|mirae asset midcap fund|motilal oswal nasdaq 100 fund of fund|navi nifty 50 index fund direct growth|nippon india banking and financial services fund direct growth|nippon banking fund direct|nippon india flexi cap fund NAV|nippon india large cap fund direct growth|nippon india pharma fund direct growth|nippon india small cap fund direct growth|PGIM small cap fund direct growth|quant flexi cap fund direct growth|quant infrastructure fund direct growth|quant tax plan direct plan growth|SBI bluechip fund direct growth|SBI corporate bond fund direct growth|SBI equity minimum variance fund direct growth|SBI flexi cap fund|SBI magnum children's benefit fund investment direct plan|SBI nifty index fund direct growth|SBI small cap fund direct growth|SBI technology opportunities fund direct growth|tata banking and financial services fund direct plan growth|tata business cycle fund|tata technology fund direct growth|tata equity pe fund direct growth|tata ethical fund direct growth NAV|tata focused fund direct growth|tata index fund nifty direct plan|tata india tax savings fund direct plan growth|UTI focused equity fund direct growth|UTI nifty index fund direct growth NAV|UTI nifty 50 index fund direct growth