Bank of Baroda falls by over 4% after lacklustre Q2 performance; here's what brokerage says about BoB

Bank of Baroda Share Price: Bank of Baroda's docile performance in its September-quarter results reflected in its shares' modest show on Monday morning in the first session post announcement of Q2 numbers as the stock fell by over 2.5 per cent.

The shares of the bank were trading 4.15 per cent lower, or Rs 8.45, at Rs 195.30 each, at 10:53 am on BSE on Monday. 

The company announced its second-quarter results on Saturday, reporting below estimates net interest margin, which was up by 6.4 per cent.  

JP Morgan on Bank of Baroda

After the results, JP Morgan maintained an 'overweight' rating on the stock of the bank, raising its target to Rs 250 from Rs 230. 

Bank of Baroda Q2 results

Bank of Baroda reported NIM compression above Zee Business research estimates.

The company's NIM for the quarter under review was up by 6.4 per cent to Rs 10,830.70 crore Quarter-on-quarter against the research estimates of Rs 10,950 crore. Its global NIM stood at 3.07 per cent against 3.27 last quarter, while its domestic NIM was 3.19 per cent compared to 3.41 per cent QoQ. 

The company's slippage growth is also high, up by 24.5 per cent to Rs 4,331 crore against Rs 3479 crore in the same quarter last year.

On a quarter-on-quarter basis, the bank's slippage was higher by 76.6 per cent against Rs 2,452 crore in the first quarter.     

Bank of Baroda's gross non-performing assets for the September quarter came about 3.32 per cent as against 3.51 per cent  last quarter. 

The company reported its net non-performing assets at 0.76 per cent compared to 0.78 per cent sequentially.  

Bank of Baroda Stock Performance

The stock of Bank of Baroda has given a modest performance this year. It has been down by 9.22 per cent in the last one month, while it has jumped by 6.83 per cent in the six-month period. The stock's year-to-date rise is 4.94 per cent.

The becnhmark Nifty 50, meanwhile, has declined by 1.62 per cent in the one month, while it has been up by 5.87 per cent in the six-month period. The benchmark's year-to-date rise 6.26 per cent.