Bank of Baroda preview by Indiabulls research

 Visit http://indiaer.blogspot.com/ for complete details


Bank of Baroda (BOB IN, CMP: `969; TP: `803; Neutral)
• We are factoring a 27% growth in advances in 2QFY11, which is lower than the 30% factored in 1QFY11.
• We expect NIMs to improve by 12bps due to better yields in international advances as yields have improved from 0.7% earlier to 1% currently.
• Treasury income will be under pressure as yields have moved up.
• We estimate Provisions charges at `3.2bn vs `2.5bn in 1QFY11 due to higher slippages from restructured accounts