Bank of Baroda has been put under the F&O ban for November 12 after it reported a 24 per cent growth in standalone net profit on November 10.
F&O ban implies when the shares of the firm crosses 95 percent of the market-wide position limit.
The net profit rose mainly due to a 23 per cent increase in other income which includes fees and bad loan recoveries and was helped by a fall in provisions as bad loans decreased year on year.
Net Profit of Rs 2,088 crore in the quarter ended September 2021 from Rs 1,679 crore a year earlier. Other income increased to Rs 3,579 crore from Rs 2910 crore last year.
A 2 per cent year-on-year fall in provisions also helped the bank's bottom line. Provisions fell to Rs 2754 crore from Rs 2811 crore a year ago and was lower than the Rs 4005 crore reported in June 2021.
Check what brokerage houses have to say about the company's stock:
Jefferies
The brokerage house has maintained an underperform rating on the stock and has raised the target to Rs 82 from Rs 70 per share as the Q2 profit was ahead of estimate due to lower provisions. However, the slippages stayed elevated at 3.5 per cent of loans and gross NPL at 8.1 per cent & restructured loans at 3 per cent.
CLSA
The investment firm has maintained a buy call on the stock and has raised the target price to Rs 140 per share. The bank is beneficiary of the corporate recovery cycle, feels the brokerage. It expects credit costs to normalise to 120- 125 bps by FY23 and expect 10.8-11 per cent RoE by FY23/24.
Motilal Oswal
Bank Of Baroda reported a strong earnings performance, supported by lower provisions and higher other income, even as NII remained under pressure. Domestic NIM moderated by 22bp QoQ to 2.9 per cent. It has maintained a buy rating with a revised target price of Rs 130 per share.
Morgan Stanley
The global investment firm maintained its overweight rating on Bank of Baroda post Q2 results with a target price of Rs 145.
