State owned Bank of Baroda came out with its numbers today. The bank registered a remarkable performance on y-o-y basis. It reported Net profit of Rs.1019.3crores for the quarter ended 30 September’10 against Rs.634.18crores in the corresponding previous quarter, a 60.73% y-o-y growth. The Net Interest Income rose 46.78% to Rs.2038.14crores, the other income increased to Rs.681.3crores from Rs.595.33crore and provisions also jumped to Rs.185.9crores from Rs.116.33crores. The advance growth in Q2FY11 stood at 29.5% while deposits growth was reported at 30%. Gross non-performing assets (NPA) rose to Rs.2719.85crores. The CASA ratio stands at a healthy 35% in the current quarter.
The bank is fundamentally quite strong and doing well both domestically as well as internationally. Its overseas operations contribute around 21-22% to its profits. It is looking forward to launch a Malaysia JV by December end. The bank plans to open 400 more branches in India, taking its total number to 3,500. It is also planning to add three branches overseas, in addition to the two already opened this year.
Banking, our start performer in this rally, has given various reasons for euphoria to investors. With impressive credit off take and tremendous growth in loan books, banks have managed to deliver stellar results in the on going quarter.
Amongst the banks, PSU space has been most exciting. Government has decided to back these banks by infusing around Rs 15,000 crore into this space during the current fiscal, of which it has already approved over
Rs 6,200 crore support to five banks. This infusion would make sure that the most important Tier-II capital of these banks remains intact and healthy.
Amongst the performers, Bank of Baroda has managed to come in limelight with its remarkable performance on y-o-y basis. Bank registered a tremendous 60.73% growth in its net profit y-o-y, while its net interest income rose 46.78% to Rs.2038.14crores from Rs.595.33crore. Banks provisions jumped to Rs.185.9crores from Rs.116.33crores.
The advance growth in Q2FY11 stood at 29.5% while deposits growth was reported at 30%. Gross non-performing assets (NPA) rose to Rs.2719.85crores. The CASA ratio stands at a healthy 35% in the current quarter.
Further the bank has committed to expand itself in the current fiscal. It plans to open 400 more branches in India, taking its total number to 3,500. It is also planning to add three branches overseas, in addition to the two already opened this year.
With 23-24% credit growth for the current financial year, BOB continues to remain robust with 18% upside on its current market price which is expected to hit Rs.1192 in the near term. Investors can consider stocking this stock on every decline.
No comments:
Post a Comment