Bank of Baroda shares fall

On Monday, Bank of Baroda’s stock saw a slight decline of 0.8%, despite the bank reporting substantial year-on-year growth in deposits and total business. The Q2FY24 figures for the bank revealed a 14.63% increase in deposits and a 15.88% growth in total business.

During this period, Bank of Baroda’s total advances rose, backed by a strong financial performance was also evident in a remarkable 87.7% surge in net profit. Additionally, the bank successfully reduced its gross non-performing assets from 6.26% to 3.51%.

Morgan Stanley has assigned an ‘overweight’ rating to the bank’s stock and set a target price of Rs 235 per share. Over the past six months, the bank’s shares have generated a return of 29.36%.

The bank also experienced an increase in domestic CASA (Current Account Savings Account) deposits. Furthermore, it reported year-on-year growth in various loan segments, including auto loans (22.1%), home loans (18.4%), personal loans (82.9%), mortgage loans (15.8%), and education loans (20.8%).

Despite these positive indicators, the bank disclosed gross non-performing assets (NPAs) totalling Rs 34,832 crore, along with a net NPA ratio of 0.78% and a slippage ratio of 1.05%. These figures may have contributed to the slight drop in share prices observed on Monday.