Bank of Baroda: Most up-to-date News With regards to Banking

Bank of Baroda (532134.IN) shares have fallen 17% during the last 60 days as investors fretted in the Indian lender’s soured loans. Nomura sees the dip as being a good buying opportunity and contains upgraded the second largest government-controlled bank from neutral to purchase.


A good reason analyst Adarsh Parasrampuria likes this stock is that the outlook because of its pre-provision operating profit (PPOP) is better than its rivals, thanks to expected improvements in their net interest margins. Nomura forecasts PPOP to develop in an average rate of roughly 13% between 2017-19.
Parasrampuria also likes the bobibanking provisioning as India’s central bank cracks down non-performing assets (NPA).
RBI’s recent directive to raise the provisioning for 12 large NPA cases led to uncertainty over near-term P&L provisioning, but BOB’s NPA coverage at 58% will be the highest in the corporate banks and provides comfort, in our view. Rating agency CRISIL recently indicated a 60% haircut of these 12 large accounts, which has similarities to your 60% haircut assumption accustomed to arrive at our adjusted book.
However, the analyst is involved about M&A risks given government moves to consolidate smaller public sector banks (PSU):
M&A risks have gone up, with the finance ministry indicating a prospective merger of small PSU banks with larger ones. We presume BOB’s valuation at 1.0x FY17F book vs. 0.5-0.6x FY17F book for smaller PSUs factors in M&A-related provisioning risks.
Parasrampuria has a INR200 a share target price on Bank of Baroda, which suggests 26% upside. The state-owned lender trades at 10 times forward earnings and pays a modest 0.8% dividend yield.
Bank of Baroda (BoB) has a very strong provision coverage ratio when compared with other public sector undertaking (PSU) banks. Their tier-I capital ratio can also be significantly higher. While most other people are consolidating their balance sheet, BoB is speaking about loan growth
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Bank of Baroda: Most up-to-date News Regarding Banking

Bank of Baroda (532134.IN) shares have fallen 17% during the last 8 weeks as investors fretted on the Indian lender’s soured loans. Nomura sees the dip like a good buying opportunity and contains upgraded the second biggest government-controlled bank from neutral to purchase.


One reason analyst Adarsh Parasrampuria likes this stock would be that the outlook for its pre-provision operating profit (PPOP) is superior to its rivals, due to expected improvements rolling around in its net interest margins. Nomura forecasts PPOP to grow within an average rate of roughly 13% between 2017-19.
Parasrampuria also likes the bob login provisioning as India’s central bank cracks down non-performing assets (NPA).
RBI’s recent directive to increase the provisioning for 12 large NPA cases led to uncertainty over near-term P&L provisioning, but BOB’s NPA coverage at 58% may be the highest in the corporate banks and provides comfort, in our opinion. Rating agency CRISIL recently indicated a 60% haircut because of these 12 large accounts, which has similarities to the 60% haircut assumption utilized to get to our adjusted book.
However, the analyst is involved about M&A risks given government moves to consolidate smaller public sector banks (PSU):
M&A risks have gone up, using the finance ministry indicating any merger of small PSU banks with larger ones. The world thinks BOB’s valuation at 1.0x FY17F book vs. 0.5-0.6x FY17F book for smaller PSUs factors in M&A-related provisioning risks.
Parasrampuria has a INR200 a share target price on Bank of Baroda, which means 26% upside. The state-owned lender trades at 10 x forward earnings and pays a modest 0.8% dividend yield.
Bank of Baroda (BoB) has a very good provision coverage ratio when compared with other public sector undertaking (PSU) banks. Their tier-I capital ratio can be significantly higher. Some other people are consolidating their balance sheet, BoB is referring to loan growth
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Bank of Baroda: Most up-to-date News With regards to Banking

Bank of Baroda (532134.IN) shares have fallen 17% during the last 60 days as investors fretted in the Indian lender’s soured loans. Nomura sees the dip as being a good buying opportunity and contains upgraded the second biggest government-controlled bank from neutral to acquire.


One reason analyst Adarsh Parasrampuria likes this stock is the outlook for its pre-provision operating profit (PPOP) is superior to its rivals, due to expected improvements in the net interest margins. Nomura forecasts PPOP to develop with an average rate of roughly 13% between 2017-19.
Parasrampuria also likes the bob net banking provisioning as India’s central bank cracks down non-performing assets (NPA).
RBI’s recent directive to improve the provisioning for 12 large NPA cases triggered uncertainty over near-term P&L provisioning, but BOB’s NPA coverage at 58% will be the highest of the corporate banks and offers comfort, in our view. Rating agency CRISIL recently indicated a 60% haircut for these 12 large accounts, which has similarities to the 60% haircut assumption used to get to our adjusted book.
However, the analyst can be involved about M&A risks given government moves to consolidate smaller public sector banks (PSU):
M&A risks have increased, with the finance ministry indicating a potential merger of small PSU banks with larger ones. We presume BOB’s valuation at 1.0x FY17F book vs. 0.5-0.6x FY17F book for smaller PSUs factors in M&A-related provisioning risks.
Parasrampuria has a INR200 a share target price on Bank of Baroda, which means 26% upside. The state-owned lender trades at Ten times forward earnings and pays a modest 0.8% dividend yield.
Bank of Baroda (BoB) has a very good provision coverage ratio in comparison with other public sector undertaking (PSU) banks. Their tier-I capital ratio is also significantly higher. Many other people are consolidating their balance sheet, BoB is referring to loan growth
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