Bank of Baroda fails to excite Street with domestic deposit growth of 6% in Q3

Bank of Baroda (BANKBARODA) shares succumbed to selling pressure on Monday after the PSU lender said its domestic advances increased 13.4 per cent on a year-on-year basis provisionally in the October-December period while deposits grew 6.3 per cent. The stock of Vadodara, Gujarat-headquartered Bank of Baroda fell by as much as Rs 9, or 3.8 per cent, to Rs 225.5 apiece on BSE. 

At 11:30 am, Bank of Baroda shares were weaker by Rs 8.3, or 3.5 per cent, for the day at Rs 226.2 apiece on the bourse.

In a business update, released post-market hours on Friday, Bank of Baroda said its domestic loans expanded to Rs 8,62,162 crore for the quarter ended December 2023 from Rs 7,60,249 crore a year ago while domestic deposits increased to Rs 10,67,391 crore from Rs 10,03,737 crore. 

The state-run bank's global advances registered growth of 13.6 per cent to Rs 10,49,401 crore while global deposits expanded 8.3 per cent to Rs 12,45,320 crore. 

According to Zee Business research, the figures given in the bank's business update looked weak.

What market wizard Anil Singhvi recommends on Bank of Baroda (BANKBARODA) shares

Earlier on Monday, Zee Business Managing Editor Anil Singhvi gave a 'sell' call on Bank of Baroda futures for targets of Rs 231, Rs 228 and Rs 226 with a stop loss at Rs 238.

Bank of Baroda Q2 results

Bank of Baroda registered a 28.4 per cent year-on-year increase in net profit to Rs 4,253 crore for the quarter ended September 2023, supported by a 25 per cent jump in operating income. Its net interest income (NII) expanded 6.5 per cent to Rs 10,831 crore, according to a regulatory filing. 

The lender reported a 17.3 per cent increase in global advances for the quarter, driven by robust growth in its retail loan book. Read more on Bank of Baroda Q2 results

What analysts make of Bank of Baroda

According to Axis Securities, which has a positive outlook on the banking space, Bank of Baroda displayed a complete turnaround in advances growth in the fiscal third quarter along with improving asset quality. 

"The bank is focused on reducing its corporate mix in its overall loan book which we believe would make the bank more resilient during a weaker business cycle," wrote analysts at the brokerage in a research report. 

Axis Securities maintained a 'buy' call on the stock with a target of Rs 255, citing in-line NII and sustained growth momentum in advances. The brokerage's target implies an upside of 8.8 per cent in Bank of Baroda shares from their previous close. 

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