Bank of Baroda - Q4FY2013 Result Review - Angel Broking

Bank of Baroda reported moderate operating performance for the quarter, as it posted subdued growth of 6.4% yoy in its pre-provisioning profit. The bank continued to witness sequential asset quality deterioration (in-line with the management's guidance), as its gross and Net NPA levels were higher by 9.0% and 24.6% qoq, respectively. Consequently, the provisioning expenses for the bank almost doubled on a yoy basis, leading to PBT level earnings decline of 54.3% yoy, however, higher tax write-backs during the quarter (at Rs. 483cr compared to tax write-backs of Rs. 322cr during 4QFY2012) limited the net profit decline to 32.2% yoy.

At the CMP, the stock is trading at valuations of 0.7x FY2015E ABV. We maintain our Buy rating on the stock with a target price of Rs. 815.

Source : Equity Bulls

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