Bank of Baroda Q2 Update: Domestic Advances Jumps 12.5%

Bank of Baroda's domestic advances saw a 12.5% jump on a yearly basis to Rs 9.39 lakh crore in the July-September quarter.

The bank reported a 7.1% advance in domestic deposits at Rs 11.5 lakh crore in the second quarter, as compared to Rs 10.74 lakh crore in the same period last year, according to provisional quarterly business updates filed with stock exchanges on Thursday.

The bank's domestic retail advances in the quarter rose 19.95% at Rs 2.32 lakh crore, as against Rs 1.93 lakh crore in the same quarter in the previous year.

The bank in the quarter ended Sept. 30 saw a 10.23% rise in global business at Rs 25.07 lakh crore. While the global deposit rose 9.11% at Rs 13.64 lakh, global advances also saw a 11.60% jump at Rs 11.43 lakh crore.

The bank on Thursday also announced that it has accepted Bank Dhofar's offer to acquire the banking business of the bank’s Oman territory operations. The date for entering the agreement and the consequent expected date of completion of the sale are yet to be decided. As is the consideration received from the sale.

Bank of Baroda last month raised Rs 5,000 crore by issuing 10-year infrastructure bonds, which were subscribed by domestic investors at a coupon rate of 7.26%.

Shares of Bank of Baroda fell as much as 2.17% during the day to Rs 243.50 apiece on the NSE. However, it pared the gains to close 1.55% lower at Rs 245.06, compared to a 2.12% decline in the benchmark Nifty 50.

The stock has risen by 12.49% in the last 12 months and by 4.84% year-to-date.

Out of the 35 analysts tracking, 26 have a 'buy' rating on the stock, 8 recommend a 'hold' and 1 suggest a'sell', according to Bloomberg data. The average 12-month Bloomberg analyst consensus price target implies a potential upside of 18.9%.