Bank of Baroda Q3 Results Review - Balance Sheet Management To Drive Net Interest Margin: Prabhudas Lilladher

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Bank of Baroda saw a good quarter; core pre-provision operating profit at Rs 61.2 billion beat our estimate by 6.5% owing to better margins and lower opex. However, fees were a miss due to moderation in unsecured loans, which may drag net interest margin over FY24-26E.Run-down of higher cost bulk deposits (Rs 143 billion) drove lower funding cost, resulting in better NIM. Full year FY24 NIM target of 3.15% is intact as management does not expect a meaningful rise in deposit cost.We expect funding cost to rise in Q4 FY24 since incremental loan-deposit ratio would reduce to accommodate credit offtake. Bank of Baroda has maintained loan growth guidance of 14-16% YoY in FY24 while it aims to keep LDR at 82%.However, we are factoring lower loan accretion of 12%, since a higher loan growth may impact yields and raise funding cost, affecting NIM materially.We maintain our multiple at 1.1 times but increase target price from Rs 240 to Rs 270 as we roll forward to March 2026 adjusted book value. Retain ‘Buy’..Click on the attachment to read the full report:.India Cements Shares Tank Over 9% After ED Searches Premises.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bank of Baroda Q3 Results Review - Balance Sheet Management To Drive Net Interest Margin: Prabhudas Lilladher

Core pre-provision operating profit beat due to higher net interest income/lower opex; asset quality better.

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