Views on Bank of Baroda 4QFY2014 results - Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research – Banking, Angel Broking) on Bank of Baroda 4QFY2014 results:

"Bank of Baroda's operating numbers came above our estimates, while asset quality remained largely stable. On the operating front, NII for bank grew by 11.0% yoy (vs. loan book growth of 21.0%) in-line with estimates. Opex growth for the bank moderated to 2.6% (as compared to ~25% growth witnessed in last 3 quarters) which was in line our estimates. Overall the Pre-Provisioning operating profit grew by 18.2% yoy (aided by higher-than-estimated non-interest income). On the asset quality front bank witnessed improvement as slippages came in lower qoq at Rs. 1,213cr (Rs. 1,534cr in 3QFY14) while incremental restructuring came in sequentially at Rs. 1,157cr (Rs. 1,213cr in 3QFY14). Absolute gross NPAs remained flat qoq while absolute net NPAs decreased by 8.9% qoq. Overall earnings for the bank grew by 12.5% yoy. At CMP stock trades at 0.8x FY2016E ABV which factors in positives for bank hence we maintain our Neutral rating on the stock."

Source : Equity Bulls

Keywords