Views on Bank of Baroda 1QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on Bank of Baroda 1QFY2017 Results:

"Bank of Baroda continued to disappoint on the asset quality front. Slippages at INR 5527 cr were higher than our expectations. After a sharp rise in NPAs in 3QFY16 and 4QFY16, it was expected to see some moderation. During the quarter, however, higher slippages and lower than expected up gradation and recovery led to GNPAs rising to 11.15% at the end of 1QFY17 vs 9.99% in 4QFY16.

Provisions remained higher than expected due to higher slippages. While there was some expectations of some decline in loan book, 11% YoY decline in look book has come in as a negative surprise. We believe slippages will continue to remains high and consequently higher provisions will keep bottom-line under pressure. We have a NEUTRAL rating on the stock."

Shares of BANK OF BARODA was last trading in BSE at Rs.149.35 as compared to the previous close of Rs. 145.95. The total number of shares traded during the day was 2079973 in over 14302 trades.

The stock hit an intraday high of Rs. 152.05 and intraday low of 144.7. The net turnover during the day was Rs. 310312558.

Source : Equity Bulls

Keywords