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Earnings Call Transcript

Bank of Baroda Earnings Call Transcript: Key Takeaways

Bank of Baroda reported strong organic growth but net profit was severely impacted by a one-time USD 600 million settlement for a legacy litigation (NMC Group). Management remains defensive yet optimistic about core operating parameters.

Highlights
Revenue growthNII grew 9.5% YoY; advances grew 17.4%.
MarginsNIM at 2.77%; guided range 2.75% to 2.95%.
Demand visibilityStrong visibility in retail, agriculture, and MSME sectors.
Management confidenceDefensive regarding litigation but confident in core business engines.

Growth

Global advances grew 17.4% YoY; domestic advances up 16.1%. Organic retail book grew 18.4%.

Outlook

Credit growth guided at 12-14% and deposit growth at 10-12% for the fiscal year.

Risks

One-time legacy litigation payout of ₹5,680 crore; potential credit cost increase from ECL migration.

Last quarter's promises, checked

Delivered

  • Loan growth 11-13% → delivered 16.2% (= BEAT)
  • ROA > 1% → delivered 1.06% (= BEAT)
  • NIM 2.75-2.95% → delivered 2.89% (= BEAT)

Partly delivered

  • Deposit growth 9-11% → delivered 12% (= BEAT on volume, but missed on cost mix)

Missed

  • Net Profit peak growth → delivered USD 600m litigation loss (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: BANKBARODA. Summary written with AI assistance from the document.

Read the document ↗

Bank of Baroda: key numbers

Share price
₹235.26
Market cap
₹1,21,661 Cr
Revenue (annual)
₹1,34,298 Cr
Net profit (annual)
₹19,846 Cr
P/E (TTM)
6.7×Sector 22.0×
Promoter holding
63.97%+0.00% QoQ
FII holding
10.14%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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