Bank Of Baroda Q1 Review - NII Growth Recovers Sharply; Collection Efficiency Stable: Motilal Oswal
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Motilal Oswal Report
Bank of Baroda reported a strong earnings performance, supported by a healthy core operating performance, despite sluggish business trends.
Domestic net interest margin improved sharply by 39 basis points QoQ to 3.12%.
Asset quality trends were stable sequentially in a challenging environment, with fresh slippage at Rs 51.3 billion (annualised slippage rate of 3.1%).
However, higher write-offs and upgrades resulted in stable asset quality trends - the gross non performing asset/net non performing asset ratio declined 1 bp/6 bp QoQ, while provision coverage ratio was broadly stable at ~68%.
Also, total special mention account- I/II declined to ~2.68%, while the restructured book stood at 3.2% of loans.
Bank of Baroda's collection efficiency (ex-Agri) was stable QoQ at 93%, better vis-a-vis many other peers.
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