Bank of Baroda share price: BIG LOSS in Q4! Check what brokerages say now

The brokerage firms post a mixed sentiment for Bank of Baroda after it reported losses of over Rs 1000 crore in quarter four results on Saturday. The higher other income and operating profit helped the bank, however, to curtail losses for the quarter. 

Bank of Baroda reported a net loss of Rs 1064 crore in the March-ended quarter of the financial year 2020-2021 as against the profit of Rs 506.59 crore in the same quarter last financial year. 

Credit Suisse has a Neutral rating on Bank of Baroda, but raises FY22 EPS estimate by 8 per cent on higher recoveries. Downgrading the target to Rs 75 per share, it states, the given stress in SMEs and uncertainty on the second wave, credit costs stay elevated. 

Meanwhile, JP Morgan maintains an Overweight stance on the Bank of Baroda. It expects slippages to trend down in FY22 as well. It increases the price target to Rs 110 per share and mentions the profit impacted by a write-down of DTA on a shift to a new tax regime.  

Reporting better-than-expected Q4 performance, CLSA has a Buy call on Bank of Baroda, expects its RoE to inch to 10-11 per cent by FY23. It said, the fourth quarter surprised positively with less than 50 basis points of slippage and strong adjusted NII performance. CLSA sets a target of Rs 130 apiece. 

On the other hand, Morgan Stanley has an equal-weight call on Bank of Baroda with the bank seeing a trend on asset quality better than expected. It said, the bank’s Q4 PBT is 137 per cent above the firm’s estimate given higher non-interest income. Morgan Stanley sets a target of Rs 100 per share. 

The stock on Friday closed flat but positive at Rs 84 per share, trading with minimal volumes. 

The bank said the slippages ratio declined to 2.71 per cent as of FY21, against 2.97 per cent in FY20, and the credit cost ratio also declined significantly to 1.68 per cent from 2.35 per cent in the same period.