Bank Of Baroda Q4 Review - Subdued On Core, Better On Asset Quality: Prabhudas Lilladher

Pedestrians pass a Bank of Baroda branch. (Photographer: Chris Ratcliffe/Bloomberg).

Bank Of Baroda Q4 Review - Subdued On Core, Better On Asset Quality: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Prabhudas Lilladher Report

Bank of Baroda reported loss of Rs 10.5 billion on deferred tax asset reversal from opting new tax regime, although pre provision operating profit was strong led by treasury/ recovery from write-off pool.

Important highlight has been lower slippages at Rs 30 billion in Q4 FY21 (adjusted to pro-forma), while restructuring also has been manageable of what has been envisaged in mid FY21.

Incremental slippages to be much lower from corporate/international, while small and medium enterprise/retail will be manageable.

This will lead to lower provisioning requirement giving delta on return ratios with return on assets at 60- 70 basis points and further room from improvement in operations.

Click on the attachment to read the full report:

Prabhudas Lilladher BOB Q4FY21 Result Update.pdf

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