Bank of Baroda Q4 Results Review - Improving Prospects: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Bank of Baroda reported a good quarter with robust loan growth of 5.6% QoQ/21% YoY, sequential net interest margin expansion of 15 basis points to 3.5%, strong recovery from written off accounts and low credit costs aiding return on asset of 1.3% for the quarter. Credit costs stood at 60 bps in Q4 despite Rs 5 billion made towards an airline exposure. Asset quality continued to improve with over 70 bps sequential decline in to 3.8%, low slippages at 1.2%, moderation in restructured book to 1.8% of advances, and provision coverage ratio at 77%. Bank of Baroda's management believes that expected credit loss provisions requirements should be absorbed within overall credit costs of guidance 1%.Sharp decline in net non performing asset levels to sub 1%, moderation in special mention account levels, and limited corporate stress to aid credit costs of ~1-1.1% over FY24-25E. With 50% of loans linked to marginal cost of funds based lending rate, near term net interest margin outlook remains strong. .Click on the attachment to read the full report:.Bank Of Baroda Q4 Results: Net Profit Jumps 168%, Asset Quality Improves.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bank of Baroda Q4 Results Review - Improving Prospects: Dolat Capital

Asset quality continues to strengthen.

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