Bank of Baroda Share Price Today in Red Post Q1 Result ; Brokerage Downgrade TP | Buy, Sell or Hold BoB?

Bank of Baroda Q1 Result Review

Bank of Baroda's significant decline in net profit was due to a one-off exceptional provision of Rs 56.7 billion to settle legal claims of the NMC group. The lender's operating performance was in line with growth guidance maintained at 12-14%, as per Motilal Oswal report. The brokerage also highlighted that the Net Interest Income (NII) missed the estimates by nearly 3%.

Strong advance growth was led by RAM segment, whereas retail book grew by 18.4% on an annual basis. So all-in-all, the muted performance in the quarter was due to a mix of reasons including one-time cost, relatively weaker NIMs, and lower core fee income.

"Business momentum was soft this quarter, with management maintaining its credit growth guidance of 12-14% going ahead. While there are no inherent concerns on asset quality, we expect credit costs to stay high at ~60bp in FY28, factoring in the ECLrelated transition," noted the brokerage in its report.

Bank of Baroda Share Price Recommendation

Motilal Oswal maintained 'Neutral' rating for the stock, but downgraded the target price to Rs 275 per share. "We cut our FY27/FY28 earnings estimates by 18.9%/5.2%, factoring in the one-time settlement impact, and expect FY27/FY28E RoA of 0.85%/0.96%. Reiterate Neutral with a revised TP of INR275 (0.9x Mar'28E ABV)."

Bank of Baroda Q1 Result Review

The Gujarat-headquartered PSU reported a 70% year-on-year decline in its net consolidated profit to Rs 1278 crore in Q1FY27 against Rs 4541 crore in the year-ago period. The PSU lender reported a total income of Rs 36681 crore during the quarter under review against Rs 35766 crore in the year-ago period.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.