Second-quarter net profit jumped to Rs 6,532 crore, largely bolstered by a Rs 1,340 crore gain from divesting a partial stake in the National Stock Exchange. Net interest income managed a 9% increase to Rs 13,026 crore, even as the lender's net interest margin narrowed to 2.74%. Analysts remain split on the stock's trajectory, with Nomura and Systematix optimistic on credit growth and asset quality, while Dolat Capital warns of lag in margin performance and future provisioning challenges.
Key points
Nomura retained a Neutral stance with a Rs 270 target price following management's upward…: Nomura retained a Neutral stance with a Rs 270 target price following management's upward revision of FY27 credit growth guidance to 13%-15%.
Systematix recommended a Buy rating with a target of Rs 285 based on sustained sequential…: Systematix recommended a Buy rating with a target of Rs 285 based on sustained sequential improvements in both gross and net non-performing assets.
Dolat Capital maintained a Reduce rating over concerns that projected loan growth of 12%…: Dolat Capital maintained a Reduce rating over concerns that projected loan growth of 12% will trail the banking system alongside impending credit loss provisioning.
Sources checked by our analysis pipeline: 1
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Bank of Baroda’s net profit jumped from Rs 4,809 crore reported in the corresponding quarter of the previous financial year. It earned Rs 1,340 crore from selling a partial stake in NSE last month. The bank’s net interest income meanwhile rose 9% YoY to Rs 13,026 crore during the quarter under review. The company's shares rose to Rs 250 apiece on Monday morning.
The profit growth was aided by non-interest income almost doubling to Rs 6,881 crore during Q2 FY27, from Rs 3,515 crore in the year-ago period. Net interest margin, however, dropped to 2.74% from 2.96% a year earlier.
Also read | Bank of Baroda Q2 profit jumps 36% to Rs 6,532 crore on NSE stake sale
Nomura on Bank of Baroda share price
Nomura maintained its ‘Neutral’ rating on Bank of Baroda shares but reduced its target price to Rs 270 apiece from Rs 280. The latest target price implies 13% upside potential.The brokerage said Bank of Baroda reported strong Q2 numbers, with the net profit beating its estimate by 12%.…
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