Dolat Capital: Bank Of Baroda Q2 Review - Strong Earnings, Albeit Unsustainable
Pedestrians pass a Bank of Baroda bank branch. (Photographer: Chris Ratcliffe/Bloomberg)

Dolat Capital: Bank Of Baroda Q2 Review - Strong Earnings, Albeit Unsustainable

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.

Dolat Capital Report

Bank of Baroda reported better than expected with net interest income and pro-provision operating profit growth of 7% and 4% YoY respectively led by elevated treasury gains (doubled QoQ to 10 billion), healthy recoveries from WO pool.

Profit after tax benefitted from low provisions. Net interest margin was sequentially higher by 30 basis points to 2.86% due to lower slippages at 2% (including standstill non-performing assets) and improved spreads.

Without standstill on NPAs, gross NPAs would be at 9.33% against 9.39% in Q1 FY21. The bank made 20% provisions against standstill loans.

Click on the attachment to read the full report:

Dolat Capital Bank of Baroda Q2FY21 Result Update.pdf


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