InvestorQ : What is your view on Bank of Baroda and what do you suggest after the latest results announcement?
Moii Chavate made post

What is your view on Bank of Baroda and what do you suggest after the latest results announcement?

Answer
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Ria Jain answered.
11 months ago


Bank of Baroda reported 84% growth in net profits to Rs.1,127 crore for the September 2019 quarter. This is for the combined entity formed by the merger of Bank of Baroda, Vijaya Bank, and Dena Bank, which came into effect in the previous quarter. The bank did not factor in the effect of deferred tax assets for this quarter but the impact will be felt when the impact is felt before the March 2020 quarter.

There was also an increase in the Net interest income (NII) for the quarter as it increased by 10.1% to Rs.7,028 crore in the second quarter. The good news for the bank was that the net interest margin (NIM) improved by 19 bps to 2.81%. Its loan advances during the quarter grew by 2% to Rs 5,33,000 crore and this growth was largely driven by retail loans, which was up by 16% during the quarter.

The stock is under consolidation mode right now as it is amalgamating the various banks that merged with it. The growth in the loan book and the and the sustained growth in the NIM make the stock a good bet at this point of time. You can look at for a long term investment and not for the short term.