Bank of Baroda’s chief financial officer says the bank sees solid growth ahead, with credit expanding around 12% this year.
Credit growth outlook
The management expects loan growth of 11‑13% driven by retail, MSME and corporate borrowers, and also from its overseas business, which is helped by a weaker rupee.
Margin expectations
Core net interest margin (NIM) should stay near 2.8%, and overall margins are projected at 2.85‑3% in the second half of the year, supported by interest on an IT refund that will continue for now.
Impact of new ECL rules
The bank has set aside a floating provision of about ₹10 billion (0.1% of loans) in case the transition to the Expected Credit Loss (ECL) framework needs more capital. It expects a modest hit of roughly 75 basis points on its CET 1 ratio.
Public‑sector bank consolidation
Bank of Baroda says it is not part of any talks on merging public‑sector banks and hopes any future consolidation will be smoother, as banks are healthier now and have learned from the previous attempt.
Analyst view
Emkay retains a “Buy” rating on the stock, raising the price target to ₹350 (from ₹330). The target valuation is about 0.9 times the bank’s estimated book value for FY 2027, and the analyst remains positive about public‑sector banks overall.
Remember, this is just one analyst’s perspective, not a guarantee. Do your own research or talk to a certified advisor before making any investment decisions.