Bank of Baroda share price zoomed 9 per cent to Rs 55 apiece on BSE a day after the bank reported a net profit of Rs 506.6 crore in the January-March quarter of the financial year 2019-20. The bank had posted a loss of Rs 991 crore in the corresponding quarter of the previous year. Bank of Baroda stock price has rallied over 52 per cent from its May low. “The results for the quarter and year ending March 31 and quarter ended December 31, 2019, includes operations of erstwhile Vijaya Bank and erstwhile Dena Bank,” BoB said in a regulatory filing.
Around 11 AM, Bank of Baroda shares were trading 4.96 per cent higher at Rs 53 apiece as compared to a 0.14 per cent in S&P BSE Sensex. With today’s gain in the stock price, the market capitalisation of the bank stands at Rs 24,465.90 crore. For the full financial year 2019-20, Bank of Baroda posted a net profit of Rs 546.18 crore, up from Rs 433.52 crore in the preceding fiscal. Research and brokerage firm Motilal Oswal has recommended to buy the stock with a price target of Rs 70, an upside of nearly 40 per cent from yesterday’s close. The brokerage firm said that it would revise its estimates and target price post the analysts’ webinar.
Another research and brokerage firm Kotak Institutional Equities has maintained an ‘add’ rating to the stock with a revised fair value of Rs 65 from Rs 105 earlier. “The bank has made additional standard asset provisions ahead of possible risks arising out of Covid in the current quarter. The merger progress is broadly on track and disruption has been lesser than anticipated,” said Kotak Institutional Equities in its latest research report.
On the asset front, the gross non-performing assets (NPAs) or bad loans of Bank of Baroda came down to 9.40 per cent of the gross advances as on March 31, 2020, as compared to 9.61 per cent on March 31, 2019.