Bank of Baroda Q4 results: Share price gains on stellar performance; brokerages remain bullish
1 min read 17 May 2023, 09:47 AM ISTBank of Baroda reported its highest-ever quarterly net profit of ₹4,775 crore in Q4FY23 as against a profit of ₹1,778.77 in the corresponding quarter last year.
PremiumBank of Baroda share price rose nearly 2% Wednesday after the state-run lender reported strong earnings for the fourth quarter ended March 2023.
Bank of Baroda reported its highest-ever quarterly net profit of ₹4,775 crore in Q4FY23 as against a profit of ₹1,778.77 in the corresponding quarter last year.
The net interest income (NII) of the lender increased 34% to ₹11,525 crore during the quarter from ₹8,612 crore, YoY. Net interest margin (NIM) rose to 3.31% from 3.03%, YoY.
Read here: Bank of Baroda Q4FY23: PAT more than doubled in Q4FY23; lender declares ₹5.5 dividend
The asset quality during the quarter also improved while deposit growth remained strong.
The bank declared a dividend at ₹5.50 per equity share of the face value of ₹2 each fully paid up for FY23.
Bank of Baroda share price has rallied more than 83% in the last one year. Bank Nifty gained 28% while Nifty PSU Bank index rallied over 61% during the same period.
Also Read: Brokerages cheer Bank of Baroda Q4 show, expect double-digit upside
Brokerages remained bullish on Bank of Baroda led by its strong credit growth and improving asset quality.
Motilal Oswal Financial Services maintained a 'Buy' call on the stock with a target price of ₹240, implying a 29% upside potential.
“We maintain our earnings estimate on the stock and estimate FY25 RoA (return on assets) and RoE (return on equity) of 1.1 per cent and 16.4 per cent respectively. We value the stock at ₹240 premised on 1.1 times September 24 adjusted book value," said Motilal Oswal.
Kotak Institutional Equities maintained an 'Add' call on the stock and raised the target price to ₹200 from ₹185, valuing the bank at 0.9 times (adjusted) book and 7 times FY25E EPS for RoEs of about 14-15%.
At 9:45 am, the shares of Bank of Baroda were trading 0.56% higher at ₹187.40 apiece on the BSE.
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