Bank of Baroda - Q4FY21 First Cut - ICICI Direct

(CMP - Rs. 83; MCap - Rs. 43361 crore)

Bank of Baroda posted good operating performance however due to DTA reversal under new tax regime, it reported a loss.

Q4FY21 Earnings Summary

- Bank of Baroda posted NII growth of 4.5% YoY to Rs. 7107 crore and declined 5% qoq led by interest reversals on NPA and interest on interest refund. The global net interest margin declined by ~5 bps on a QoQ basis to 2.73% Domestic margins declined BY ~23 bps QoQ to 2.73%

- Other income grew 71% YoY and QoQ led by recovery from w/off. Provisions for the quarter remained at elevated levels and increased QoQ to Rs. 3586 crore with Rs. 4593 crore for NPA provisions and reversal in covid buffer of Rs. 1663 crore. Loss stood at Rs. 1047 crore even though PBT came at Rs. Rs. 2680 crore due to DTA reversal on converting to new tax regime.

- Asset quality performance was maintained with GNPA and NNPA declining to 8.87% and 2.39% respectively as against 9.63% proforma GNPA reported in Q3FY21. Total stress stands at 10% with Restructuring advances at 1.3% of standard advances.. SMA1 and SMA2 declined from 4.41% to 3.9% QoQ. Slippage in Q4 FY21 of Rs. 11,656 crore includes proforma slippage of Rs. 8,637 crore implying net slippage of Rs. 3,019 crore. Total provisions o/s stood at 6.7%. PCR stood at 81.8%

- Loan growth for the quarter remained slow growing by 2% YoY to Rs. 751590 crore. Retail and agri segment loan growth was healthy at 14% YoY, driven by auto loans,. Deposit growth for the quarter was 5% YoY at Rs. 966996 crore, with domestic CASA reported growth of 16.4% YoY. Domestic CASA ratio improved by ~167 bps QoQ to 42.87%

Shares of BANK OF BARODA was last trading in BSE at Rs.80.7 as compared to the previous close of Rs. 83.85. The total number of shares traded during the day was 7041465 in over 17396 trades.

The stock hit an intraday high of Rs. 83.45 and intraday low of 79.15. The net turnover during the day was Rs. 570591927.

Source : Equity Bulls

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