Bank of Baroda Q2 Results Preview: PAT likely to rise 10% to Rs 5,290 crore, NIM may miss guidance

Gujarat-headquartered PSU lender Bank of Baroda is scheduled to report its financial results on Friday, October 30. Analysts expect the PSU bank to stage a strong performance for the second quarter of the currens financial year, on the back of double-digit percentage growth in advances.

According to Zee Business research, Bank of Baroda is estimated to register a net profit of Rs 5,290 crore for the quarter ended September 30, which translates to a year-on-year increase of 10 per cent. Its net interest income (NII) -- a key measure of a bank's core income, calculated by subtracting interest paid from interest earned -- is estimated to increase 3.5 per cent on year to Rs 12,370 crore.

The PSU bank's asset quality -- measured by comparing sequential changes in the proportion of bad assets in total loans -- is set to improve. According to Zee Business research, Bank of Baroda's gross non-performing assets (GNPAs) -- or gross bad loans -- are expected to be at 1.9 per cent of total loans in Q2 versus 2 per cent in the previous three months.

Its net non-performing assets (NNPAs) -- or net bad loans -- are estimated to remain steady at 0.5 per cent.

Analysts expect its provisions to decrease sequentially.

The PSU lender's loan growth is pegged at 18 per cent and net interest margin expected to dip by 5 basis points, according to the research. For the quarter ended June 30, Bank of Baroda's NIM was recorded at 2.77 per cent.

Earlier, the bank had given a guidance of 2.75-2.9 per cent.

How Bank of Baroda (BANKBARODA) shares have performed

On Thursday, Bank of Baroda shares rose 4.1 per cent to close at Rs 241.3 apiece on NSE.

At current levels, the largecap stock has lost 19.8 per cent of its value so far this year, underperforming the Nifty 50 and Nifty Bank indices' losses of 12.3 per cent and 8 per cent, respectively.

Here's how the stock has performed in different timeframes:

Kwala Intel-powered technical outlook

AI-powered market intelligence platform Kwala Intel suggests a 'wait and watch' approach on Bank of Baroda shares at the current juncture on Dalal Street, mentioning the absence of a clean setup in the counter.

While the daily trend is strong in the BoB stock, the setup engine finds no offerable trade and the latest close is inconsistent across the available prints, according to Kwala Intel, which enables users to interpret market data in real time to make actionable decisions.

"The near-term fundamental story is mixed: its wholly-owned bob Securities & Giltedge began NBFC operations on 26 October, expanding its presence in government securities and debt markets, while a reported $15 billion civil suit brought by NMC Healthcare founder BR Shetty against the bank and other defendants remains an unresolved headline risk. For a 4-8 week swing, the supplied setup describes a strong daily uptrend but mixed weekly and 4-hour structure, so a dip entry is more compelling than chasing continuation," according to Kwala Intel.

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