Bank of Baroda Stable quarter ACCUMULATE :Emkay,

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Bank of Baroda

Stable quarter

ACCUMULATE

CMP: Rs772                                        Target Price: Rs950

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n     BOB’s Q2FY12 NII at Rs25.7bn and PAT at Rs11.6bn above our/consensus estimates. PAT further aided by higher non-interest income

n     Balance sheet expanded 4.7% sequentially; growth in deposits / loans came in at 5.2% / 2.9% qoq respectively. Domestic NIM up 28bps qoq to 3.67%

n     Asset quality remains stable sequentially. Slippages came in at Rs4.9bn (0.9% annualized). However, reco/upgrade rates equally lower at 24% of opening GNPAs

n     Valuations at 1.3x/1.1x FY12E/FY13E ABV. Upgrade to ACCUMULATE on recent correction with price target of Rs950