Views on Bank of Baroda 2QFY2016 Results: Angel Broking

Views of Mr. Vaibhav Agrawal (VP Research - Banking, Angel Broking) on Bank of Baroda 2QFY2016 Results:

"Bank of Baroda reported 2QFY2016 results with PAT de-growth of 88.7% YoY to INR 124cr. Advances growth was muted at 7.6% YoY, whereas NII also fell 3.9% YoY. However, operating income registered a marginal decline of 0.1% YoY largely supported due to other income which grew 15.4% YoY. However, the main factor which led to the sharp decline in the PAT was provisions which spiked 113% YoY to INR 1,892cr against INR 888cr in 2QFY2015. Asset quality declined sharply with the Gross NPA increased rising sequentially to 5.56% in 2QFY2016 from 4.13% in 1QFY2016, whereas Net NPA at 3.08% in the current quarter as compared to 2.07% in 1QFY2016. Fresh Slippages for the quarter was higher at INR 6,816cr as compared to INR 1,685cr in 1QFY2016. We would await clarity from the management regarding the outlook on the asset quality and the operating performance. From the valuation perspective, the stock currently trades at 0.7x FY2017E ABV. We maintain our NEUTRAL rating on this stock."

Shares of BANK OF BARODA was last trading in BSE at Rs.167.4 as compared to the previous close of Rs. 159.5. The total number of shares traded during the day was 4249722 in over 42418 trades.

The stock hit an intraday high of Rs. 169.7 and intraday low of 143.55. The net turnover during the day was Rs. 671192804.

Source : Equity Bulls

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