Bank of Baroda Reports Huge Loss but CLSA Says it Can Gain 60%

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Bank of Baroda Reports Huge Loss but CLSA Says it Can Gain 60%

By Aditya Raghunath

Investing.com -- Bank of Baroda Ltd (NS: BOB ) reported a loss of Rs 1,046.5 crore for the quarter ended March 2021 compared to a profit of Rs 506.59 crore in the corresponding quarter in 2020. Tax cost for March 2021 quarter was Rs 3,726.07 crore against a tax writeback of Rs 2,229.85 crore in the March 2020 quarter.

Net interest income, however, grew 4.5% to Rs 7,106.62 crore in the March 2021 quarter, and credit grew at 1.83% to Rs 7.51 lakh crore. The bank’s stop price fell 3.82% to Rs 80.65 today.

However, global brokerage firm CLSA said that the stock can hit Rs 130 in 6-12 months. It said, “It was a better-than-expected Q4 performance. The Q4 surprised positively with <50 bps of slippage and strong adjusted NII performance.”

JP Morgan increased its target to Rs 110 and maintained its overweight rating on the stock. It said slippages will continue to trend down in FY22.

Credit Suisse (SIX: CSGN ) retained its neutral rating and said that there is still a lot of stress in the small and medium enterprises growth book, and there is uncertainty about the second pandemic wave. It estimates that credit costs will continue to remain high. Its target for Bank of Baroda stock is Rs 75.

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  • Ravi Negi @Ravi Negi
    clsa what analysis they are doing loss making bank suggesting to buy they should also recommend reliance communications
    Like 0
    • Vijay Pathak @Vijay Pathak
      just to ask pls don't mind am new in market... but the way ur giving reviews shows u have good experience and knowledge... then I am confuse that if u know so well abt them why are u here for??? and for what u are waiting here???
      Like 0

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  • Rohit Choudhary @Rohit Choudhary
    CLSA clients need exit. Retail customers will help them
    Like 14
    • Rachit Sharma @Rachit Sharma
      target of bob for june end ?
      Like 1
    • Anand Kumar @Anand Kumar
      correct 99 is resistance faced by Bob and now 78 is 20sma if hold then upwards otherwise correct upto 75
      Like 0

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  • Purushotham Singh @Purushotham Singh
    bob loss but broker says buy target 95 how when loss making bank low growth .
    Like 0
    • Sridhar N Rao @Sridhar N Rao
      CLSA wants to offload to gullible retail investors and exit the stock
      Like 0

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  • GP GPL @GP GPL
    BANKBARODA was Ikicked out of BANK NIFTY on 31-03-2021. BEWARE.
    Like 3
  • Srikanth Nakirtha @Srikanth Nakirtha
    clsa has bought bank baroda shares so clsa pramotes
    Like 3
  • Srikanth Nakirtha @Srikanth Nakirtha
    class has bought bank baroda shares
    Like 0

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