Shares of Bank of Baroda will be in focus on Monday after the state-run bank said its global advances jumped nearly 14 per cent year-on-year (YoY) on just over 8 per cent growth in deposits. In a filing to BSE, the PSU bank said its global advances were up 13.59 per cent YoY to Rs 10.49 lakh crore as of December 31 2023 compared with Rs 9.23 lakh crore as of December 31 2022. Global deposits rose 8.34 per cent to Rs 12.45 lakh crore compared with Rs 11.49 lakh crore in the year-ago period.
The total global business was up 10.68 per cent at Rs 22.94 lakh crore against Rs 20.73 lakh crore YoY, BOB said.
Bank of Baroda said it shed bulk deposits (including CD) of Rs 14,285 crore during the quarter from a cost optimisation perspective, but for which, the bank’s deposit and total business growth would have been higher.
Also read: Bank of Baroda stock hits record high ahead of meeting to consider fund-raising
BOB said its domestic retail advances stood at Rs 2,03,700 crore at the end of the December quarter compared with Rs 1,93,682 crore in September and Rs 1,66,861 crore in the same quarter last year. The YoY growth stood at 22 per cent. Overall, domestic advances were up 13.41 per cent YoY at Rs 8,62,162 crore compared with Rs 7,60,249 crore in the same quarter last year. Domestic deposits were up 6.34 per cent YoY at Rs 10,67,391 crore against Rs 10,03,737 crore in the year-ago quarter.
In its preview note, Motilal Oswal Securities expect earnings and business growth to remain healthy for BOB. Bank of Baroda's opex may increase due to branch expansion, Motilal Oswal said while suggesting an improvement in asset quality. The credit cost is likely to remain in control, the brokerage said adding that loan growth development and margin trajectory will be key monitorables for BOB.
For the quarter, Motilal Oswal expects BOB to report 9.4 per cent YoY rise in profit at Rs 4,220 crore compared with Rs 3,850 crore in the same quarter last year. It sees 2.6 per cent rise in NII at Rs 11,100 crore against Rs 10,820 crore YoY. Gross NPA as percentage of advances is seen falling to 3.1 per cent in the December quarter from 3.1 per cent in the September and 4.5 per cent in the same quarter last year.
Also read: Stock recommendations by market analysts for January 8, 2024: Jindal Saw, CDSL and REC