Bank of Baroda Q3 Results Review - Enough And More To Maintain As A Top Pick: Yes Securities

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Yes Securities Report.Bank of Baroda was already well provided for wage hike and hence, there were no incremental provisions over above run rate:Wage hike provisions for the quarter amounted to Rs 4.25 billion, which is essentially a normalized run rate provision. The assumption for wage hike has been 18% since June and the actual hike proved to be 17%. Wage hike provisions were higher by only Rs 0.65 billion due to catch-up on AS 15, which is the retiral and gratuity provision.A rundown of bulk deposits kept cost of deposits in check and management reiterated NIM guidance:Global net interest margin was at 3.1%, up 3 basis points QoQ but down -27 bps YoY, which is within guidance range. The rundown of bulk deposits has been NIM accretive since these deposits are particularly high cost in nature. The cost of deposits was up just 4 bps QoQ.The tenure of the deposits is usually one year and hence, most of the deposit repricing is done. The yield on advances was up 8 bps QoQ and can still benefit from some marginal cost of funds based lending rate repricing and, also, from non-banking financial company book repricing. Management reiterated NIM guidance of 3.15% plus or minus 5 bps for FY24..Click on the attachment to read the full report:.Budget 2024: Government Sets FY25 Fiscal Deficit Target At 5.1%, Revises FY24 Number To 5.8%.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Bank of Baroda Q3 Results Review - Enough And More To Maintain As A Top Pick: Yes Securities

Conservative wage and credit provisions earlier allow Bank of Baroda to breathe easier now.

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Bank of Baroda Q3 Results Review - Enough And More To Maintain As A Top Pick: Yes Securities

Conservative wage and credit provisions earlier allow Bank of Baroda to breathe easier now.

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