Shares of Bank of Baroda will be in focus today, May 11 after the lender reported fourth quarter earnings for the fiscal year 2025-26 on Friday. Bank of Baroda posted an 11.3% year-on-year growth in net profit for the January to March quarter, driven by steady growth in net interest income and improvement in asset quality.
The public sector lender reported a net profit of Rs 5,616 crore for the March quarter compared to Rs 5,048 crore in the corresponding period last year. Net interest income (NII) rose 9% year-on-year to Rs 12,494 crore against Rs 11,494 crore reported a year ago. Operating profit for the quarter surged 11.5% to Rs 9,069 crore from Rs 8,132 crore in the year-ago period.
Along with the earnings announcement, Bank of Baroda declared a dividend of Rs 8.50 per equity share for FY26, subject to shareholder approval. The bank has set a record date of June 5, 2026 for the purpose of dividend payment.
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Brokerages have primarily shared positive reviews on the Q4 show, with Morgan Stanley highlighting lower tax provisions and bad loan recoveries at a target price of Rs 225, while Macquarie attributed the growth in net profit to lower operating costs. Citi highlighted that the core NIM remained under pressure due to persistent pricing competition. Notably, UBS said, no impact seen from Middle East conflict on asset quality, while CLSA said that the asset quality stable
Morgan Stanley on Bank of Baroda
The brokerage maintained 'Underweight' coverage with target price of Rs 225, marking a 17.2% downside from the closing price of Rs 263.9.
- Core revenues were 2% above estimates.
- Core Pre-Provision Operating Profit (PPOP) was 23% above estimates due to reversal of retirement provisions.
- PPOP and lower tax provisions and bad loan recoveries drove a PAT beat of 27%.
- Stock could do well in the near term.
- But stay Underweight given low core RoA and macro risks.
Macquarie on Bank of Baroda
The brokerage maintained 'Neutral' rating on margin pressure concerns at a target price at Rs 280, around 6% upside.
- The fourth quarter PAT beat driven by lower operating costs.
- NIM at 2.89% above estimates, supported by tax refund benefit.
- Non-interest income 11% below estimates due to MTM losses.
- FY27 NIM guided at 2.75–2.95% with near-term pressure from deposit costs.
Citi on Bank of Baroda
Citi mainatined 'Buy' with a target price of Rs 340, a 28.8% upside
- Profitability was materially aided by one‑offs.
- Core NIM trajectory remained under pressure due to persistent pricing competition.
- Management proactively created floating provisions, cost of deposits remained sticky.
- Slippages driven by stress in SME and agri portfolios.
- RoA and NIM outlook remains structurally softer.
CLSA on Bank of Baroda
CLSA reiterated 'Outperform' coverage with target price of Rs 335, around 27% upside.
- Strong loan growth; some spread compression.
- NIM expanded, while impact of interest on ITR is unknown.
- Asset quality stable; Rs 1500 crore floating provisions made.
- Decline in fee income but good opex control.
UBS on Bank of Baroda
The brokerage maintained 'Buy' rating with target price of Rs 350, marking 32.6% upside.
- PAT beats estimates driven by non-core items.
- NIM supported by tax refund interest and recoveries.
- FY27 NIM guidance at 2.75–2.95%.
- Loan growth strong at 16.2% YoY and 6.3% QoQ.
- Loan growth guidance at 12–14U%, deposit growth at 10–12%.
- No impact seen from Middle East conflict on asset quality.
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