Bank of Baroda: What should investors do after Q1: buy, sell or hold? – Moneycontrol.com

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Bank of Baroda: What should investors do after Q1: buy, sell or hold? – Moneycontrol.com


Bank of Barodashare price declined 3 percent in the early trade on August 11, a day after the lender reported its June quarter numbers.

The bank posted a net loss of Rs 864.3 crore for the June quarter 2020 due to provisioning on standard accounts. The bank’s profit was at Rs 709.6 crore in the corresponding period last fiscal.

“On account of provisioning on standard accounts of Rs 1,811 crore, the bank reported a net loss of Rs 864 crore in Q1 FY21 and consolidated net loss stood at Rs 679 crore,” said the bank.

Net interest income during the quarter grew by 4.9 percent to Rs 6,816.1 crore compared to Rs 6,496 crore in the same period last year.

“Global advances growth was at 8.6 percent with organic retail loans growing at 13.5 percent. Domestic CASA ratio increased by 294 bps YoY to 39.49 percent. Domestic retail term deposits increased by 10.4 percent,” the bank said in its BSE filing.

Here is what brokerages have to say on the stock and the company:

Citi | Rating: Buy | Target: Lower to Rs 65 from Rs 75

Higher provisions in Q1 led to the loss, while moratorium was at 21 percent.

Lower FY21E/22e PAT estimates by 30 percent/ over 4 percent adjusting for Q1 miss & lower the margin, reported CNBC-TV18.

Morgan Stanley | Rating: Underweight | Target: Rs 42

Lower CET-1, elevated slippages and elevated term loan moratorium were the key negatives, while maintaining underweight against above backdrop despite cheap valua

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