BANK OF BARODA Rating
MORGAN STANLEY ON BANK OF BARODA : 09.06.2021
• FY22 will see a tussle between higher restructured loan
• Upgrade BOB to Overweight, Target at Rs 110/share
• Catch-up in coverage ratios is still needed; BOB is best placed after SBI
* Expect credit costs to moderate in F22; the extent will depend on duration
• BOB best placed amongst non-SBI SOE banks
* POP margins have bottomed but recovery will be gradual
CITIBANK ON BANK OF BARODA : 01.06.2021
* Maintain BUY, Target at Rs 110/share
* BOB saw a Sharp decline in slippages
* Specific NPA coverage has been steady at 67%
* CASA and retail loan growth healthy
* Raise FY22E net profit estimate by ~11%
CLSA ON BANK OF BARODA : 31.05.2021
* MAINTAIN BUY TARGET: 130
* CLSA has a Buy call on BOB, expects its RoE to inch to 10-11% by FY23
* Better-than-expected Q4 Performance
* Q4 Surprised Positively With <50 bps Of Slippage & Strong Adjusted NII Performance
* Reported A Pre-tax ROE Of 8% In FY21
* Expect Its ROE To Inch To 10-11% By FY23
JPMORGAN ON BANK OF BARODA : 31.05.2021
* MAINTAIN OVERWEIGHT TARGET: 110
* JPMorgan maintains Overweight stance on BoB. It expects slippages to trend down in FY22 as well
* Profit Impacted By A Write-down Of DTA On A Shift To A New Tax Regime
* Adjusting For The Same, PAT Would Have Been *2,230 Cr
* Asset Quality Print Was A Positive With Proforma Q Slippage At 3,000 Cr
* Believe Slippages Will Continue To Trend Down In FY22 As Well
* Cost Jaws Should Also Be Positive Going Ahead
MS ON BANK OF BARODA : 31.05.2021
* MAINTAIN EQUAL-WEIGHT TARGET: 100
* Morgan Stanley has an equal-weight call on BOB with bank seeing a trend on asset quality better than expected
* Q4 PBT 137% Above Our Estimate Given Higher Non interest Income
* Higher Non-interest Income Partly Offset By Higher Opex/Provisions
* Asset Quality Trends Were Better Than Expected
* CET-1 Ratio Improved To 10.9%, Helped By Capital Raise During Qtr
CS ON BANK OF BARODA : 31.05.2021
* MAINTAIN NEUTRAL TARGET: 75
* CS has a neutral estimate by 8% on higher recoveries rating on BOB, but raises FY22 EPS
* Growth Continues To Lag, Asset Quality Stress Broadly Contained
* CET Is Up To 11% & Allows For A Pick-up In Growth
Given Stress In SMEs & Uncertainty On 2nd Wave, Credit Costs To Stay Elevated
* Raise FY22 EPS Estimate By 8% On Higher Recoveries
CLSA ON BANK OF BARODA : 31.05.2021
* Maintain BUY, Target at Rs 130/share
* Better than expected 4Q performance
* Positive surprise on asset quality; Strong core NII growth
* Rising tide to lift all boats; Corporate slippage will likely come down
