Bank of Baroda shares surge 17% post Q4 numbers

Bank of Baroda share price jumped nearly 17 per cent on the back of improvement in asset quality. The bank announced its fourth quarterly earnings on Monday.

The company reported a net profit of Rs 598 crore, down  48.3 per cent, against Rs 1,157 crore in the corresponding quarter a year ago. The fall in net profit figures can be attributed to rise in provisioning.

Provisions for contingencies grew 57.6 per cent year-on-year (yoy) to Rs 1,818 crore at the end of the quarter under review.  

Positively surprising, asset quality of Bank of Baroda improved during the quarter as gross non-performing assets (NPAs) grew modestly by 5.2 per cent while net NPAs declined by 2.7 per cent sequentially. Gross and Net NPA ratios improved to 3.72 per cent and 1.89 per cent, respectively. Provisioning coverage ratio of the bank stands at 65 per cent.

Net interest income increased 1.5 per cent y-o-y and declined by 3.5 per cent quarter-on-quarter (qoq) due to a fall in margins and slow credit movement.

On Monday, the share price of the bank was trading at Rs 168.30 (at 12.37 pm).

Brokerage houses such as KR Choksey and Angel Broking are bullish on the stock.