Bank of Baroda shares rise 5 per cent on higher Q2 profit
The lender reported a 36 per cent year-on-year increase in net profit for the second quarter of FY27.
Bank of Baroda shares rose nearly 5 per cent on Monday after the lender recorded a 36 per cent year-on-year increase in net profit. According to The Economic Times, the profit for the second quarter of the 2027 financial year reached Rs 6,532 crore, up from Rs 4,809 crore in the same quarter last year.
The profit growth was supported by Rs 1,340 crore earned from selling a partial stake in the National Stock Exchange during its initial public offering last month. Non-interest income also rose to Rs 6,881 crore from Rs 3,515 crore in the previous year. However, the net interest margin fell to 2.74 per cent from 2.96 per cent a year earlier.
Nomura maintained a ‘Neutral’ rating on the stock and lowered its target price to Rs 270 from Rs 280. The brokerage noted that net profit exceeded its estimates by 12 per cent. Management has raised FY27 credit growth guidance to 13-15 per cent and deposit growth guidance to 11-13 per cent.
Systematix Institutional Equities kept a ‘Buy’ rating with a target price of Rs 285, stating net profit was nearly 28 per cent above its estimate. The brokerage noted that the gross non-performing asset ratio improved to 0.8 per cent.
Dolat Capital maintained a ‘Reduce’ rating with a target price of Rs 260. The brokerage said profit was in line with estimates but noted that net interest margins are lower than peers.