Hold Bank of Baroda Ltd.

Target  Rs.616
CM Price Rs.564.85

BoB’s PAT growth stood at 18% y-o-y in Q3 FY10 on back of strong NII growth and lower provisions (incl tax). Advances grew by 23% whereas margins expanded by 32bp sequentially. Fee income growth was 27% y-o-y and CASA improved by improved by 84 bps y-o-y. Asset quality remains one of the best in the industry with the PCR (incl technical write offs) at 89%, Net NPAs at 0.31% and restructured loans of just 3% of outstanding loans

KEY HIGHLIGHTS