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