Bank of Baroda Ltd shares started its trading session today at Rs 171 and is currently trading at Rs 170.25. In comparison to the previous closing price of Rs 170.85, the scrip is down about 0.35 percent.
The Bank, via an exchange filing, provided a business update pertaining to the Advances and Deposits. Total Advances of the bank grew around 19% YoY and 5.4% QoQ to Rs 9.74 trillion as of 31st March 2023. Likewise, the total Deposits of the bank grew by 15.1% YoY and 4.7% QoQ to Rs 12.04 trillion in the same time frame.
On an overall basis, the Business of the bank grew by 16.8 % YoY to Rs 21.77 trillion thereby touching the ‘21 trillion’ milestone.
J.P. Morgan gave a ‘Buy’ recommendation for the stock with a target price of Rs 220 indicating an upside of around 29 percent as compared to the current price levels.
Bank of Baroda, founded in 1908, is a banking institution providing banking services that include commercial, personal, and corporate banking solutions. Additionally, the company is engaged in the business of offering appraisal, merchant and correspondent banking, cash management, and treasury services. The Bank offers its products and services to individuals, businesses, and corporate customers.
Having a quick walkthrough of the financials, the net profits have seen an improvement in recent quarters with a movement from Rs 3,272 crores in Q2 to Rs 4,166 crores in Q3.
Representing an overall picture of the operations held at the Bank, the net NPA ratio has reduced from 3.09 percent in FY20-21 to 1.72 percent in FY21-22. Another parameter is the CASA ratio which also improved from 39.8 percent in FY20-21 to 41.14 percent in FY21-22.
Having some interest pressures, the net interest margins saw a slight downward movement from 2.74 percent in FY20-21 to 2.71 percent in FY21-22.
The profitability ratios have too performed well with increasing numbers with ROE moving from 1.91 percent in FY20-21 to 8.84 percent in FY1-22 and ROCE shifting from 6.68 percent in FY20-21 to 8.12 percent in FY21-22.
As per the quarter ending December 2022, promoters hold a constant 63.97 percent stake in the company. FIIs, after some dip in stake during some quarters, have again gained back the stake by moving from 8.93 percent in Q2 to 9.97 percent in Q3.
Written by Amit Madnani
