Bank of Baroda trades flat despite 14.63% rise in Q2 deposits

Shares of Bank of Baroda traded 0.56 percent lower in early trade of October 9 even as the bank reported a 14.63 percent growth in deposits over last year.

At 10:51am, the Bank of Baroda stock was trading 0.24 percent lower at Rs 214.25 on NSE.

The public sector lender said its total business crossed Rs 22 lakh crore in the quarter ended September, up 15.88 percent over a year-ago period, as per provisional numbers shared by the bank in a BSE filing on October 6.

The total advances of the bank grew 17.43 percent YoY and 3.51 percent QoQ to Rs 10.25 lakh crore and deposits increased by 14.63 percent YoY and 4.15 percent QoQ to Rs 12.49 lakh crore as of September FY24.

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The public sector lender on August 5 reported an 87.7 percent rise in net profit to Rs 4,070 crore for the April-June FY24 quarter from Rs 2,168 crore last year. The gross non-performing assets of the bank declined to 3.51 percent as compared with 6.26 percent last year.

The gross NPA of the Bank fell 33.8 percent on-year to Rs 34,832 crore in Q1FY24 and the gross NPA ratio improved to 3.51 percent in Q1FY24 from 6.26 percent in Q1FY23. The Net NPA ratio of BoB stands at a record low of 0.78 percent in Q1FY24 as against 1.58 percent in Q1FY23.

However, slippage ratio declined to 1.05 percent for Q1FY24 as against 1.71 percent in Q1FY23. Domestic CASA deposits registered a growth of 5.5 percent YoY and stood at Rs 4,23,600 crore. Auto loan increased by 22.1 percent, home loans 18.4 percent, personal loans 82.9 percent, mortgage loans 15.8 percent and education loans 20.8 percent on a YoY basis.

Brokerage Views

Brokerage firm Morgan Stanley has given an ‘overweight’ rating to the Bank of Baroda stock with a target price of Rs 235 per share in a report released on October 9. “The bank’s overseas loans grew 6 percent versus 5 percent last quarter, and its domestic deposits grew 2 percent QoQ. CASA flows improved 1 percent QoQ,” it said.

Stock Performance

The Bank of Baroda stock has given a return of 29.36 percent over the last six months. The benchmark Nifty Bank index has given a return of 8.63 percent over the same duration.

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