Bank of Baroda hits a fresh 52-week high amid huge sell-off in D-street!
In the last 50 days, Bank of Baroda has rallied from Rs 79 to Rs 112 today, registering a return of 42%. The buying throughout January month has shown investors confidence in Q3 results. Today the profit surge was announced.
Q3 Earnings report
Profitability: This mid to large size PSU bank has posted strong Q3FY22 results on Saturday. They had a decent top line with triple-digit bottom-line growth. Net interest income is up 14.38% YoY at Rs 8,552 crore, Operating profit before provisions reached Rs 5,483 crore (+7.81% YoY). Net profit is up by 107% YoY at Rs 2,197 crore, this whooping net profit increase is due to a decline (-27.5%) in provision in Q3FY22 of Rs 2,506 crore against Rs 3,450 crore in the previous year same quarter.
NIM improved 36bps YoY to 3.13%. This growth was mainly attributable to the decline in interest expenses to Rs 9,411 crore (-6.08% YoY), however as interest income grew 2.66% to Rs 17,963 crore.
The domestic CASA ratio has improved by 308 bps YoY at 44.28%. Total Deposits and Total gross Advances were up 2.46% and 3.56% YoY.
Asset quality: For Q3FY22 GNPA/NNPA stood at 7.25%/2.25% which improved against 8.48%/2.39% in the previous year same quarter.
Bank of Baroda is an Indian multinational, public sector banking and financial services company. It currently has 8,192 branches in India and 99 overseas offices across 20 countries. The bank merged with Vijaya Bank and Dena Bank, effective 1 April 2019.
Domestic Loan Book- Presently, corporate advances account for 46% of the loan book, followed by retail (21%), Agriculture (15%), MSME (15%) and others (3%).
Retail Book - Home loans account for 66% of the retail book, followed by auto loans (17%), others (12%) and education loans (5%).
Shares of BOB has hit a 52-week high today to Rs 117.25 in the morning session, at 3.30 PM stock closed at Rs 112.85, up by 5.85% for the day.
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