Bank of Baroda - 3QFY17 Result Update - Asset Quality Pressure Continues to Persist; Downgrade to HOLD - Reliance Securities

Though the new management is gradually reinstating confidence through major changes in operating structure, we believe that effective execution of strategic revival plan holds the key. Whilst we continue to admire BoB's core operating performance and business franchise, the current headwinds suggest further pressure on profitability in the near-term. The Bank is expected to witness higher credit cost and low treasury profit as well, which will keep its earning profile and return ratio subdued over next 2-3 quarters. Hence, we downgrade our recommendation on the stock to HOLD from BUY with a downwardly revised Target Price of Rs167 (from Rs190 earlier).

Shares of BANK OF BARODA was last trading in BSE at Rs.166.05 as compared to the previous close of Rs. 163.2. The total number of shares traded during the day was 863354 in over 5609 trades.

The stock hit an intraday high of Rs. 167.75 and intraday low of 163.65. The net turnover during the day was Rs. 143037584.

Source : Equity Bulls

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