Bank of Baroda just came out with its results which was expected. Here is what it looks now

Bank of Baroda Q1 – 2017 Q4 – 2016 Q1 – 2016 %Change Q-Q % change Y-Y
Total Income 11,877.91 12,789.06 12,243.72 -7.12% -2.99%
Net Interest Income 3,371.09 3,330.41 3,459.62 1.22% -2.56%
Net Profits 423.62 -3,230.14 1,052.15 -59.74%
Deposits 562,173.73 593,087.21 -5.21%
Advances 362,766.35 408,388.13 -11.17%
Gross NPA 42,991.68 40,521.04 17,273.95 6.10% 148.89%
Net NPA 20,783.77 19,406.46 8,470.02 7.10% 145.38%


The carnage in banking sector continues, the only positivity we can take from this results is that the gross NPA’s and net NPA’s increment had slowed down to 6% -7%, but still above the normal rate. We can also see deterioration in its fundamentals where deposits have fallen down and also the advances. If these two variables are in negative growth path, we will have to wait for longer time to see any meaningful profits to be reported from this bank.

We do not track this bank as it doesn’t qualifies our quality grading, but paying almost 0.70 times to book value looks premium price to pay today looking at its asset quality.

Aziz Dodhiya is the chief investment officer for the Valueoperations funds which operates in the Indian market as an FPI (Foreign Portfolio Investor). We do not offer any personal advice to buy or sell any stocks and the views that are shared by Aziz might not incline to your personal investment strategy and this is the reason we advise you to take professional advice before going ahead with our views.